By Arlenys Tabare
According to a new report released recently by Bank of The US, Gen Z adults are managing their finances better, prioritizing savings over discretionary spending amid high inflation and economic uncertainty.
According to the study called “Better Money Habits”, which analyzes how people of certain generations manage their finances, determined that 42% of GenZ feel comfortable rejecting social outings by admitting they cannot afford them.
In this regard, Will Smayda, director of financial centers at Bank of The US, commented on the results of the survey that currently Generation Z “is being very transparent with their spending habits and has no qualms about saying no to certain expenses, such as trips or a luxurious dinner at a restaurant,” he said.
Given the dizzying increase in prices of food, goods and services, 75% of those surveyed are spending less money, managing their home budgets better and postponing plans with friends, meals at restaurants or unnecessary purchases, replacing them with zero-cost activities, eating in cheaper places and opting for much more affordable products.
“Frankly, I think it’s healthy for people to be open about how they save and how they spend, and about the fact that sometimes you have to make difficult decisions,” said Smayda, while mentioning that “I love that saving and making difficult decisions is something this generation feels comfortable talking about publicly, and that this reinforces positive behaviors.”
Many young people are no longer depending on their parents.
In the Bank of The US analysis it was also known that only 34% of Gen Z respondents are receiving financial help from their parents or other family members. “We see it as something extremely positive: more savings and less dependence on family members to get ahead. “It turns out that being an adult is difficult and expensive,” added Smayda. Even the majority of the population surveyed is focused on saving for their future and retirement.
However, although they no longer depend entirely on their parents, it was determined that 40% of young people still seek social validation regarding their expenses.
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