Family support is crucial to nearly half of Gen Z adults: What this means

Generation Z is asking mom and dad for financial help.

In a Bank of America survey of more than 1,000 adults in Generation Z — the generation born between 1997 and 2012 — 46% of respondents reported receiving financial assistance from parents or other families that they used to pay for expenses including groceries, rent and phone plans.

A third of those who said they were receiving assistance reported receiving up to $1,000 or more in monthly assistance, while just over half (55%) said they received up to $500 per month.

Housing affordability impacts Generation Z

Half of the survey participants said they want to buy a home within the next five years, while 31% said they want to live alone. However, this may be difficult given trends in the rental and housing markets.

Interest rate hikes by the Federal Reserve have contributed to some of the highest mortgage rates in the past two decades. More than a quarter of survey respondents said housing costs were the biggest barrier to financial success.

Fifty-four percent of respondents said they do not pay for housing.

Younger Americans are working to achieve financial goals

“Despite hurdles caused by the cost of living, young Americans are showing discipline and foresight in their saving and spending patterns,” said Holly O’Neill, head of consumer banking at Bank of America.

The majority of survey respondents try to reduce expenses by changing spending habits, taking steps including eating out less, saying no to going out with friends, and sticking to a budget.

Only 19% of Gen Z respondents said they were investing money in 401(k) plans, while less than 20% had invested in the stock market at all.