TikTok star Taylor Price shares why she started helping younger people manage their money and her best tips for achieving financial freedom.
New Research Bank of America Surveys have found that nearly half of Gen Z adults rely on financial support from their parents or other family members to get by.
According to a survey by Bank of America’s Better Money Habits team, 46% of Gen Z Financial Support The percentage of people who receive their education from their parents or other family members drops to 30% for Gen Z.
“Gen Z is coming out into the workforce and becoming independent, so I think if there’s one area where we’d like to see progress, it’s Gen Z becoming more independent from their family and friends,” Holly O’Neill, president of consumer banking at Bank of America, told reporters on Tuesday.
“I may be biased because I’m trying to get three Gen Zers to be independent, but I think this is an indicator that they’re setting a budget and living within that budget, so I’d like to see progress in that regard,” O’Neill said.
Credit card delinquencies soar, with the fastest increase in this California city
More than half of the respondents said they received financial support not only from their parents or family but also from friends and the government. (Photo by HUM Images/Universal Images Group via Getty Images)
In addition to the 46% of Gen Z who receive financial support from their parents, 3% said they receive help from friends and 9% said they receive financial assistance from the government, meaning that 54% of Gen Z are receiving some form of financial support.
Of those who received financial aid, 32% received more than $1,000 per month, and 44% received less than $500 per month. Non-student Gen Z respondents received less, with only 22% saying they received more than $1,000 per month and 55% saying they received less than $500 per month.
Gen Z members who receive financial assistance say they use the money to buy: Groceries and toiletries (57%), rent and utilities (53%), phone plans (53%), and health insurance premiums (49%).
Younger generations are more likely to rely on friends and family to buy homes
A Bank of America survey found that nearly half of Gen Zers receive financial help from their parents or other family members. (Smith Collection/Gado/Getty Images/Getty Images)
The survey found that more than half (52%) of Gen Z Earn enough money The rising cost of living is making it harder for people to live the life they want. To cope with rising expenses, 43% of Gen Zers report eating out less, 27% have forgone social events, 24% have switched to more affordable grocery stores, and 21% have started budgeting.
More than half of Gen Zers, 54%, said they do not pay a housing bill. Of the 46% who do, 64% said they spend more than 30% of their monthly salary on housing, and 23% said they spend more than 51% of their monthly salary on housing. Housing costs.
Fifty-seven percent of Gen Z respondents said they don’t have enough emergency savings to cover three months of savings, which aligns with Bank of America’s findings of 56% for 2023 and 55% for 2022.
Gen Z is more reliant on credit than millennials and is in more debt
More than half of Gen Z respondents said they are unable to pay their housing costs, according to the survey. (Joy Addison/Fox News/Fox News)
“They’re also slowing down some of the things that we think of as traditional indicators of economic progress,” O’Neill said. “Fifty percent are Buy a house Over the next five years, 46% say they won’t be able to save for retirement, and 40% say they have no plans to start investing.”
“Some of this is to be expected. Gen Z is between 18 and 27 years old, so think about that age range. If you’re 18, you obviously aren’t going to be buying a home in five years’ time,” O’Neill says. “But they’re actively managing their financial lives and they’re putting these things off until they’re ready.”
Click here to get FOX Business on the go
O’Neill suggested three key steps that Gen Zers should take to improve their financial situation.
“When we talk about getting on a financially healthy path, these are three important milestones: taking control of your daily spending, creating a budget and sticking to it, and saving and increasing your savings. Managing credits” said O’Neill.
