Nearly Half of Gen Z Rely on Family for Financial Support, Survey Reveals

A recent survey conducted by Bank of America reveals that nearly half of Gen Z adults are dependent on financial support from their parents and family members. The survey, part of the Better Money Habits initiative, indicates that 46% of Gen Z individuals receive assistance, with the figure dropping to 30% among non-students. Holly O'Neill, president of retail banking at Bank of America, emphasized the importance of fostering independence among this generation as they transition into adulthood. The survey highlights that 54% of Gen Z members are receiving some form of financial aid, which includes 3% from friends and 9% from government sources. Among those receiving help, 32% report monthly assistance of $1,000 or more, while 44% receive less than $500. Additionally, over half of Gen Z, specifically 52%, feel they do not earn enough to sustain their desired lifestyle due to escalating living costs. To cope with these financial pressures, many Gen Z individuals are making lifestyle adjustments. The survey found that 43% are cutting back on dining out, while others are forgoing social events, opting for cheaper grocery stores, and adopting budgeting practices. Notably, 54% of Gen Z do not pay for their housing, and among those who do, a significant portion allocates over 30% of their income to housing expenses. O'Neill noted that many Gen Z members are postponing traditional financial milestones, such as homeownership and retirement savings. She advised that to improve their financial situations, Gen Z should focus on managing daily expenses, adhering to a budget, and building credit.