Gen Z: Still Living at Home, Struggling With Financial Stability
New research from DailyPay found that 54% of 18- to 25-year-olds are living with their parents.
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.