NEW YORK, NY (June 25, 2026) — How are young adults navigating the financial challenges of early adulthood? While fewer members of Gen Z (ages 18-29) are relying on their parents for financial support, affordability issues are preventing them from fully launching into the next stage of their lives, according to a recent Bank of America study. Reuters spoke to Will Smayda, head of financial centers at Bank of America, about the findings. This interview has been edited and condensed.
Bank of America recently released its annual survey on Gen Z’s financial health. What is the biggest takeaway regarding this generation’s reliance on family support?
The big statistic this year is that 34% of Gen Z report receiving financial assistance from parents or family members. While one in three adults between 19 and 30 relying on family is still tough, the trend is moving in a positive direction — it’s down from 46% in 2024. As they age through their 20s, that reliance drops significantly and savings increase.
Even with that positive trend, a staggering number of young people are still living paycheck to paycheck. What stands out to you in that data?
Across the board, 42% of Gen Z report living paycheck to paycheck. What’s a bit concerning is that even among those earning six-figure salaries ($100k and above), 29% are still living paycheck to paycheck. Basic living expenses like rent and transportation are simply eating up a much larger proportion of their budgets.
When you look at their primary financial stressors, where is the money going?
Their concerns are split almost equally among three major pressures: paying off debt (student loans and early credit card debt), saving for major life events like moving out or buying a home, and building an emergency fund.
The emergency fund is the critical step that almost everyone misses. Young people love to talk about bitcoin, equities or the latest IPO, but they often have little to no cash savings.
The report notes that 92% of Gen Z admit to buying themselves “little treats” despite carrying financial stress and guilt. What’s the psychology behind that?
When I hear “little treat,” my mind goes to a $6 Starbucks coffee. In the past, financial advice always focused on “brown-bagging” your lunch to save money. But there is a real dynamic between short-term relief and massive, long-term stressors.
When you feel like you’ll never be able to afford a home or fully pay off your student debt, a small, immediate luxury like a coffee scratches a daily itch, even if those minor costs build up over time.
The survey shows that 60% of Gen Z openly talk to their friends about money. Does that surprise you?
It does surprise me, because in my generation, which is Gen X, admitting you couldn’t afford to go out felt incredibly uncomfortable. But Gen Z lives openly and digitally.
There’s a trend right now called “loud budgeting” — the practice of openly telling your peer group, “I’m skipping that concert or movie this weekend because it doesn’t fit my budget.” I think it’s a highly positive behavior that normalizes delayed gratification. In fact, 75% of Gen Z actively look for ways to save money when hanging out with friends.
More than half of the Gen Z respondents (56%) are single, and of those, only 11% say they are actively dating — with over half spending $0 a month on a love life! How has financial stress impacted dating?
The traditional concept of dating — going out for a dinner and a movie — has fundamentally changed, partly because relationships get established in a bunch of different ways, and doing it digitally is a big part of it.
However, when you ask this group what they look for in a romantic partner, what comes right to the top is financial independence, strong financial behaviors and earning potential. They might not be spending money to go on dates, but they are hyper-focused on finding a partner who is financially stable.
Only about 16% of respondents have taken on a side hustle to combat rising costs. Given the gig economy, do you think more should be leveraging it?
Absolutely. Gen Z has a massive advantage because they grew up in a world where the gig economy is standard. For me, it meant having a day job and working nights as a waiter. Today, if you have a skill — whether you can write, tutor, or handle data — you can monetize it digitally from home.
We just profiled a 28-year-old now visiting the U.S. and spending nearly $40,000 in savings to cheer on England in the World Cup. What are your thoughts?
I want to say two things to him: One, it’s such a terrible financial decision, and two, I’m so jealous. I am a big soccer fan.
It’s a fascinating thing to do as a young person. And in the context of thinking about retirement, some people save up their whole life to travel the world. The idea that you’re going to do it now is kind of cool.
If he had asked me as a friend, however, I would have told him that he should stream it or get himself a nice sponsorship.
What is your ultimate advice for Gen Z — and their parents — trying to find their financial footing right now?
First, don’t view moving back home as a financial failure. It can be an incredibly smart strategic move for a young person to accumulate cash.
Second, parents need to have direct, jarring but helpful boundaries. When I graduated, I moved back into my childhood bedroom and found two boxes of kitchen supplies on my bed labeled “Will’s Apartment.” My mom charged me $300 a month in rent. It flipped a switch in my brain to get moving.
With parents facing their own financial pressures — like saving for retirement or caring for elderly parents — taking structured financial steps with your adult children early on ensures you aren’t supporting them over the long term. Stick to the basics: manage debt aggressively and build that emergency cash buffer.
With information from Reuters
