Money talks: How Gen Z is cutting back to get ahead

Nearly two-thirds of Gen Z are now in the workforce, and they're feeling the pinch of post-grad financial pressures.

• Key number: 42% of Gen Z say they are living paycheck to paycheck, citing the high cost of living as the top barrier to financial success and a major source of stress.

Why it's important: Rising costs impact Charlotteans of all ages, but how Gen Z spends, builds wealth and plans for major milestones could have ripple effects across the local economy.

The landscape: New data from Bank of America's Better Money Habits® Survey shows Gen Z is facing the costs of adulthood head-on.

• They're cutting back where they can, setting boundaries and having more transparent conversations about money than older generations.

Here's a breakdown of how their habits are shifting.

🗣️ Money talks — and Gen Z is yapping. They're significantly more likely than Gen X and Baby Boomers to openly talk about topics like salary and financial stress.

• Plus, "loud budgeting" is trending, with 42% of Gen Z being vocal with friends about what social outings they can and can't afford.

👀 Perception matters. Gen Z feels the pressure of comparison when it comes to money.

• 81% say it's important to be perceived by others as financially responsible.
• 28% feel behind on their financial goals compared to friends.
• 40% seek validation from family or friends before making a purchase.

💔 Romance is taking a back seat. Half of Gen Z spends $0 on date nights.

• Nearly a quarter are delaying moving relationships forward because of their financial situation.
• 43% say irresponsible spending is a dating dealbreaker.

📈 Financial independence is on the rise. Gen Z is relying less on family for financial assistance.

• Only 34% receive financial support from family, down from 46% in 2024.
• 66% of Gen Z are saving. Their likelihood to contribute to a 401(k), use a high-yield savings account and set aside part of each paycheck are all up year-over-year.

💸 Taking control is the move. 69% of Gen Z have taken action to cope with rising costs in the past year.

How it's done:

• 40% are cutting back on dining out.
• 24% are passing on events with friends.
• 20% are shopping at more affordable grocery stores.

The takeaway: Gen Z's money habits offer a window into how financial stability and success are evolving for the next generation of Charlotteans.

For anyone trying to spend smarter, save more or plan what's next, Bank of America's Better Money Habits® offers free tools and resources for every life stage.

Start here to take control of your financial future.