Gen Z is finding adulthood more expensive than expected. Facing this, nearly three-quarters of them are taking action to improve their financial health, according to Bank of America’s 2025 Better Money Habits financial education study, published today.
“Gen Z is challenging the stereotype when it comes to young people and their finances,” said Holly O’Neill, president of Consumer, Retail and Preferred Banking at Bank of America. “Even though they’re facing economic barriers and high everyday costs, they are working hard to become financially independent and take control of their money.”
Key findings from the study include:
- Over the last 12 months, 72% took steps to improve their financial health, such as putting money toward savings (51%) or paying down debt (24%).
- Nearly two-thirds (64%) focused on reducing expenses – 41% cut back on dining out and 23% shopped at more affordable grocery stores.
- And more are going it alone. While 39% receive financial support from parents and other family members, this is down from 46% a year ago. And they are getting less money – 22% receive $1,000 or more per month compared to 32% a year ago, and 54% receive less than $500 per month compared to 44% a year ago.
- When it comes to their romantic lives, many Gen Z aren’t spending money on dates – with roughly half of men (53%) and women (54%) spending $0 a month, and 25% of men and 30% of women spending less than $100 per month.
According to the study, about half (51%) of Gen Z surveyed say the high cost of living is a barrier to financial success. Total monthly spending is higher than they thought it would be for 35%, especially for everyday expenses including groceries (63%), rent and utilities (47%) and dining out (42%).
Budget Busting
The study found that Gen Z feel a lack of income is a problem as well, with over half (53%) not feeling they make enough money to live the life they want, and many are struggling to save consistently. In fact, 55% don’t have enough emergency savings to cover three months of expenses.
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