Gen Z is not prioritizing long-term financial security, unlike other generations, according to a new study conducted by Intuit. Adults aged between 18 and 25 are prioritizing experiences promoting personal growth and emotional well-being as the cost of living rises.
“Younger adults feel discouraged,” Ted Rossman, senior industry analyst at Bankrate, told CNBC.
Over half of Gen Zers say a high cost of living hinders their financial success, according to a study conducted by Bank of America. 73% have made changes to their lifestyle and spending habits in order to deal with inflation. This means cooking at home more frequently rather than dining out, spending less on clothes and limiting grocery purchases to essentials.
Gen Z faces financial challenges their parents did not at the same age, including lower wages, higher student loans and higher housing cost. Nearly 3 in 4 of Gen Zers say the current economy makes them hesitant to set up long-term goals, according to the Intuit study.
This means most are not sure they will ever have enough money to be able to retire. Instead, 73% of respondents say they would rather have a better quality of life than additional savings. The top drivers of prosperity were found to be work-life balance and the ability to pursue hobbies or passions.
