Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
A worried woman looking at stock charts

Portfolio > Economy & Markets > Economic Trends

Gen Z: Still Living at Home, Struggling With Financial Stability

By Michael S. Fischer

X
Your article was successfully shared with the contacts you provided.

What You Need to Know

  • Only 28% of Gen Zers in a DailyPay survey said they are typically able to pay all their bills on time.
  • The youngest adults also appear to have worries when it comes to saving money.

Parents of Generation Z members don’t have to worry about becoming empty-nesters anytime soon. New research from DailyPay, a platform that delivers on-demand pay solutions, found that 54% of 18- to 25-year-olds have chosen to live with their parents because of the current economic climate.

A big reason is that these young adults are having trouble with financial stability when inflation is straddling 8%. Only 28% of Gen Zers said they are typically able to pay all their bills on time.

The Harris Poll conducted an online survey on behalf of DailyPay in early October among 3,037 U.S. adults, 353 of whom were Gen Zers.

Short- and Longer-Term Concerns

Eighty percent of the younger demographic said they expect the economy to either stay the same or decline over the next 12 months. Forty-one percent worried that they will have a tougher time paying their bills — utilities, medical, credit card, insurance and the like — because of high inflation.

Worse, 38% expressed concern that buying staples such as food will be more challenging for them.

“This report demonstrates the need for employers to provide meaningful and impactful financial benefits to help their employees, particularly Gen Z, despite the negative effects of inflation,” DailyPay chief executive Kevin Coop said in a statement.

The research showed that the timing of pay could help young workers take care of monthly expenses. Nearly three-quarters of employed Gen Zers said having access to their pay every day, as opposed to waiting until a scheduled payday, would help them pay bills on time.

Because of the current state of the economy, the youngest adults also appear to have worries when it comes to saving money. Seventy-eight percent of this cohort said they have been able to save less than they did last year, or only the same amount or nothing at all.

Still, many Gen Zers may not be pessimistic about the long-term future. Only 33% said they are worried that they will find it more challenging to buy a house because of inflation, and just 20% worried that it will be more difficult to pay for health care for parents or family members.

Michael S. Fischer

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.