Gen Z pushes back against inflationary headwinds

As Gen Z (ages 18 to 25) enters the workforce, they are struggling to establish their financial footing in a challenging economic environment, according to new research published by Bank of America's Better Money Habits.1 The report, Gen Z’s Financial Priorities, Barriers & The Path Forward, explores the youngest generation of employees’ financial priorities, behaviors and challenges, and highlights their resilience in pursuing their goals.

73% of Gen Z say the current economic environment has made it more challenging to save.1

77% have also taken at least one positive action over the past year to help strengthen their financial well-being.1

According to the report, Gen Z feels inflation has made it harder to save for financial goals (59%) and pay down debt (43%) and has created more financial stress (56%) in their lives. Forty percent also say surging rents or home prices have made it challenging to afford day-to-day necessities.

But Gen Z isn’t taking the higher cost of living sitting down. Three-quarters (75%) say they are taking or considering steps to earn additional income, including: changing jobs (34%), turning a passion into a source of income (31%) or taking on a second job (26%).

Download the report to learn more, including how race, ethnicity and gender may influence financial motivations, behaviors and barriers among this diverse group of young adults.

1 Gen Z’s Financial Priorities, Barriers & The Path Forward, Bank of America Better Money Habits, July 2022.