Your Generation Z child might be eager to leave the nest, but don’t expect them to have the same haste when it comes to leaving your bank account.
A new survey from Bank of America found nearly half of adults ages 18 to 27 are still relying on financial assistance from their parents and relatives.
The financial institution found 46% of those born between 1997 and 2012 are needing the extra support, and 52% said they didn’t make enough money to live the life they want, mainly due to the cost of living.
This has left 54% of them unable to afford their housing. For those who do pay their own, 64% said they spend more than a third of their monthly paycheck on rent or a mortgage, and 20% spend more than half of their monthly paycheck on the expense.
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To help their situations, 67% responded to the survey saying they have changed their habits: 43% cut back on eating out, 27% stay home from events with friends and 24% started shopping at more affordable grocery stores.
But even though the respondents said they were working toward their financial goals, within the next five years they say they won’t be ready to buy a home (50%), save for retirement (46%) or start investing (40%), according to the survey.
“Though faced with obstacles driven by the cost of living, younger Americans are showing discipline and foresight in their saving and spending patterns,” said Holly O’Neill, president of retail banking at Bank of America. “It is critical that we continue to empower Gen Z to work toward achieving financial health and meeting their long-term goals.”
Some reports, like one from Bankrate, have shown younger Americans, including Gen Z and millennials, feel growing financial wealth is harder than it once was for their parents.
But other studies also say Gen Z is richer than generations in the past were at their age. Some of this is attributed to the fact they want a higher salary than their ancestors or that the idea of a middle-class level is different for the age group. Still, their net worth is the lowest of any generation, in part due to their age and rising costs of living.
