Much of Gen Z has the financial basics down, though struggle with more complex topics such as investing and debt.
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.These priorities are followed closely by saving for retirement (25%), traveling (24%), buying a car (22%) and building good credit (20%). 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%).Other key findings from the Better Money Habits research include: When it comes to success at work and in life, Gen Z is driven by the desire to achieve financial peace of mind (74%) and to comfortably afford the things they want. Through our Better Money Habits platform, we're connecting these young adults to a wide range of resources and guidance designed to give them the skills, knowledge and confidence to succeed financially.” "Current economic and inflationary headwinds have created added challenges for many. "Gen Z is ambitious and enterprising, and taking positive actions as they join the workforce and make some of their first financial and career-driven decisions," said Christine Channels, Head of Community Banking and Consumer Governance at Bank of America. Currently, 75% of Gen Z are taking or considering steps to earn additional income including: changing jobs (34%), turning a passion into a source of income (31%), taking on a second job (26%) or even a job they don’t like (23%). Gen Z isn’t taking inflation and the higher cost of living sitting down. According to The Bank of America Institute, younger consumers are getting squeezed the most by higher rent inflation, with median rent payments up 16% year over year in July for Gen Z, compared to just 3% for Baby Boomers. Forty percent also say surging rents or home prices have made it challenging to afford day-to-day necessities. 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.
With Gen Z being far more diverse than previous generations, the new research also examines ways in which race, ethnicity and gender may influence their financial priorities and challenges.Īccording to 73% of Gen Z, the current economic environment has made it more challenging to save. This is according to new research published today by Bank of America's Better Money Habits exploring this generation’s (ages 18 to 25) distinct approach to money – including their financial priorities, behaviors and challenges. As Gen Z looks to establish their financial footing, the economic environment and inflation have posed new challenges in achieving their financial goals.
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