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16 September 2022
Gen Z feels the financial heat
Money & financeYouth lifestyles & attitudesUnited States
Three quarters of 18-25 year-olds in the US report that the current economic environment has made it more challenging to save and a similar proportion are seeking ways to earn additional income.
That’s according to research from Bank of America: its Better Money Habits financial education platform explored this generation’s approach to money and found that they feel inflation has made it harder to save for financial goals (59%) and pay down debt (43%) and has created more financial stress (56%) in their lives.
Why it matters
It’s hardly surprising that the generation entering the workforce will find times particularly tough, but it’s how they respond that may determine their future financial wellbeing – and, equally, how brands respond to Gen Z’s current difficulties may pay dividends in future.
Gen Z’s top three priorities for the year ahead include furthering their education (40%), advancing their career/salary (32%) and getting a new job (31%).
They’re more likely than other generations to cite the desire to comfortably afford material items (45%) as a motivator to achieving financial success (vs. 34% of Millennials, 30% of Gen X, 30% of Boomers).
Two-thirds (66%) are actively saving for financial goals and, despite the current environment, 58% are optimistic about their financial futures.
Gen Z feels equipped to handle basic financial tasks, including budgeting (71%), managing day-to-day expenses (70%) and building/managing credit (65%).
Preparedness levels decrease significantly when it comes to the future and more complex topics, including building an emergency fund (54%), saving for retirement (43%) and investing (29%).