Gen Z says they have it harder than their parents did — and the economy is to blame

Gen Zers are having a harder time making ends meet, not to mention constructing wealth.

Roughly 38% of Generation Z adults and millennials consider they face extra issue feeling financially safe than their parents did at the identical age, largely due to the economy, in accordance to a latest Bankrate report. Gen Z is usually defined as these born between 1996 and 2012, together with a cohort of teenagers and tweens.

In the face of a better value of residing, 53% of Gen Z employees additionally stated they have a facet hustle — extra than every other technology — to assist cowl their month-to-month bills, Bankrate found. Fewer are saving for the future.

Parents want to understand that their children are in bother.

Laurence Kotlikoff

professor of economics at Boston University

“This is a more durable local weather, for positive,” stated Laurence Kotlikoff, economics professor at Boston University and president of MaxiFi, which affords monetary planning software program. “Parents want to understand that their children are in bother.”

Gen Zers face larger obstacles to monetary success

Inflation’s latest runup has certainly made it harder for these simply beginning out. More than half, or 53%, of Gen Zers say larger prices are a barrier to their monetary success, in accordance to a separate survey from Bank of America.

In addition to hovering meals and housing expenses, millennials and Gen Z face different financial challenges their parents did not as younger adults. Not solely are their wages lower than their parents’ earnings when they have been in their 20s and 30s, however they are additionally carrying bigger student loan balances.

Roughly three-quarters of Gen Z Americans stated immediately’s economy makes them hesitant to arrange long-term monetary objectives and two-thirds stated they would possibly by no means have sufficient cash to retire, one other latest Prosperity Index examine by Intuit discovered. 

Young adults additionally have the benefit of time

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