Members of Gen Z are beginning to take their personal finances more seriously. More than 8 in 10 people aged 18 to 29 say it is important to be perceived by others as financially responsible, and fewer are relying on family for financial assistance, Bank of America's 2026 Better Money habits study found.
Today, one-third of of Gen Z report receiving some form of financial assistance from their parents or other family members, down from 46% in 2024. When examined more closely, although half of younger Gen Z (ages 18 to 22) receive financial assistance, this drops to 29% for middle Gen Z (23 to 25) and just 18% for older Gen Z (26 to 29). Nearly 7 in 10 have taken concrete steps in the past year to manage rising costs, including cutting back on dining out (40%), passing on events with friends (24%) and picking up a side hustle (16%).
"Gen Z knows money stress is real, but they're meeting it head on," said Holly O'Neill, president of consumer, retail and preferred at Bank of America. "They're budgeting honestly, cutting back when they need to and having real conversations about money as they work toward their goals."
The financial challenges are real. Forty-two percent of Gen Z report living paycheck to paycheck. The high cost of living remains a significant obstacle, with nearly half citing it as a top barrier to financial success. Median rent growth for Gen Z and millennials slowed significantly in the 12 months to February 2026 compared to 2024 and 2023. However, housing costs still weigh heavily on this generation, with nearly 30% of those surveyed pointing to housing and rent as top barriers to financial success, a figure that has remained consistent in recent years.
Despite the strain on their wallets, two-thirds of Gen Z say they are saving, up from 60% in 2024. Thirty-six percent put any leftover money into savings when possible; 22% contribute to a 401(k) account, and 21% put a set percentage of their paycheck into a savings account every month.
Rather than abandoning financial goals in the face of affordability concerns, Gen Z is setting boundaries, adjusting social habits and being more transparent about money than previous generation. Three-quarters of Gen Z take active steps to save money when making social plans, and 42% practice "loud budgeting," which is being vocal with friends about which social outings they can and cannot afford.
Nevertheless. Gen Z hasn't given up on small indulgences. More than 9 in 10 treat themselves, and more than half do so at least once a week, whether it be doughnuts or new sunglasses.
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