A new report from Bank of America shows that nearly half of Gen Zs depend on family financial support due to rising costs.
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Gen Zs are struggling financially, and nearly half of them rely on their parents for support, a new study found.
And though the TikTok-famous trend of "loud budgeting" may be helping, it's not enough to offset the rising cost of everything from college education to monthly rent to eggs.
Bank of America released a report Wednesday outlining Gen Z's financial health, and things aren't looking too great for these 18- to 27-year-olds.
The report — which is based on an Ipsos survey of more than a thousand young people conducted in April and May — found that 46% of Gen Zs in that age bracket rely on their parents or family members for financial assistance.
It's not just in college, either; the report found that 30% of non-students get help from their families.
And 32% of the Gen Zs who are getting financial assistance from either their families, the government, or their friends say they get $1,000 a month or more, with 44% saying they get $500 or less.
That money isn't funding influencer-style trips to Ibiza — it's just helping them pay for the bare necessities: groceries and toiletries, rent and utilities, phone plans, and health insurance, according to the report.
The report did outline a positive financial trend among Zoomers: their willingness to do "loud budgeting," a trend popularized on TikTok where young people are open with their friends about what they can and can't afford.
The research found that 38% of Gen Zs are OK admitting to their friends that they can't go to certain social events because they can't afford them. And 63% of the group surveyed said they don't feel like their friends pressure them to spend more than they can, "indicating that Gen Z may be drawing firmer financial boundaries compared to other generations at the same age," according to Bank of America's report.
And that's a big change from previous generations — ones that made fun of budgeting.
Take, for example, an episode of "Friends" from 1995, "The One with Five Steaks and an Eggplant" in which Rachel, Phoebe, and Joey awkwardly and shamefully confront Chandler, Ross, and Monica about not being able to afford the kinds of activities that their more financially stable friends can. At the time, that type of conversation was totally taboo.
But just because Zoomers are better at being honest about their finances doesn't mean they're better off.
Bank of America's report found that 57% of those surveyed do not have enough money saved to cover three months of expenses, and only 18% had put money into an emergency fund in the last year.
"Though faced with obstacles driven by the cost of living, younger Americans are showing discipline and foresight in their saving and spending patterns," Holly O'Neill, BofA's President of Retail Banking, said in a press release. "It is critical that we continue to empower Gen Z to work toward achieving financial health and meeting their long-term goals."
