Nearly half of Gen Zers get help from the bank of mom and dad, report finds

Nearly half of Gen Zers get help from the bank of mom and dad, report finds

To keep up with the high cost of living, many young adults turn to a likely safety net: their parents.

Nearly half (46%) of Gen Zers between the ages of 18 and 27 rely on financial assistance from their family, according to a new report from Bank of America.

Even more — 52% — said they don’t make enough money to live the life they want and cite day-to-day expenses as a top barrier to their financial success.

“The high cost of living is certainly impacting Gen Z,” said Holly O’Neill, president of retail banking at Bank of America.

The financial institution polled more than 1,000 Gen Z adults in April and May.

Why times are so tough for Generation Z

Many consumers feel strained by higher prices — most notably for food, gas and housing. However, those just starting out face additional financial challenges.

Not only are their wages lower than their parents’ earnings when they were in their 20s and 30s, after adjusting for inflation, but they are also carrying larger student loan balances.

Even compared to millennials, Gen Zers are spending significantly more on necessities than young adults did a decade ago, other reports show.

They also have the debt to prove it. Roughly 15% of Gen Zers have maxed out their credit cards and are at risk of falling behind on payments, more so than any other generation, the New York Fed reported in May. 

“What delinquency rates are showing is that there is increased stress among some segments of the population,” the New York Fed researchers said at the time.

‘The high cost of housing definitely is a barrier’

Fewer Americans feel financially comfortable overall

When it comes to their salary, Americans said they would need to earn $186,000 on average to live comfortably, Bankrate found. But to feel rich, they would need to earn a bit more than half a million a year, or $520,000.

Similarly, inflation’s recent runup and specific challenges related to housing costs and college affordability were significant obstacles to achieving financial security, according to Bankrate.

“Many Americans are stuck somewhere between continued sticker shock from elevated prices, a lack of income gains and a feeling that their hopes and dreams are out of touch with their financial capabilities,” said Mark Hamrick, Bankrate’s senior economic analyst.

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