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Joe Cruz works three jobs in Austin. But because of debt and the rising cost of living in Texas, the 26-year-old moved in with his dad a couple years ago and has been there since.
“I tried the whole renting thing,” Cruz tells TIME. “It was just outrageously expensive, so I moved back home, and I’ve been there for about two years now—paying off student debt, credit cards, car payment, that stuff.”
Cruz is one of the many people in his generation who receives some form of financial help. A new report released last week by the Bank of America’s Better Money Habits financial education team found that 46% of Gen Zers between the ages of 18 and 27 rely on financial assistance from their parents and family. The survey—which polled more than 1,000 Gen Zers in April and May—found that 52% of respondents said they don’t make enough money to live the life they want, pointing to the cost of living as one of the main financial challenges Gen Z faces.
“With them relying so much on others for support, it really kind of explains that they don’t feel that they have enough money to live the life that they want to live,” says Shannah Stephens, community banking executive at Bank of America. “They’re sharing with us that it’s this insufficient income, all of this inflationary environment, that really makes it difficult for them to actually achieve their financial goals and ambitions.”
Gen Zers who receive financial assistance—either from their family, the government, or friends—said they used that money to help pay for groceries and toiletries, rent and utilities, phone plans, and health-related expenses, the report found.
Many of the Gen Zers surveyed for the report said they’re pushing back major milestones, including buying a house, saving for retirement, or starting to invest. About 54% of them said they don’t pay for their own housing. Of those who do, nearly two-thirds said they’re spending more than 30% of their monthly paycheck on…
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