CHARLOTTE — Some new studies are sounding the alarm about the financial stability of Generation Z.
A Federal Reserve study says one in seven Gen Zers is maxed out on their credit cards, and a new report from Bank of America says nearly half are getting financial assistance from their parents or family members.
“You know, if you don’t have parents who are willing to help you, then what do you do?” said Tiffany Munroe, a Gen Z adult.
Munroe does have that support, but like many members of Gen Z, she says it would be tough to get by otherwise.
“I’m just working, and my husband is working, so it definitely helps that, you know, dual income. Because outside of that, it’s like impossible,” Munroe said.
BoA found that 46% of Gen Z adults between 18 and 27 rely on financial help from their parents and family. About 52% of more than 1,000 Gen Z adults polled for the survey said they don’t make enough money to live the life they want.
“I would be remiss to say that we didn’t help them out a fair amount,” said Carey Rappaport, a parent.
He believes financial independence is harder for young people to achieve today than in the past. It’s why he recently helped his son by a condo.
“It was twice as much as we paid for a full house and three-quarters an acre,” Rappaport said.
Financial Planning Officer Alisa Kim O’Neil says young people need to be willing to “give a little and change.”
“The world is not going to change for you, unfortunately,” she said.
O’Neil recommends young people start small by cutting back on eating out, food delivery, subscriptions, and streaming services.
“There’s a cost to having so many subscriptions to all these different streaming services that you feel like you have to have, but does it really make sense?” O’Neil said.
[ ALSO READ >> How big will the Gen Z ‘problem’ be in Charlotte? Here’s what the data says. ]
She says targeting what sacrifices can be made and setting attainable goals are important first steps in carving out a budget to reach the goal of self-sufficiency.
“You need to make sure that you can afford the lifestyle that you are trying to live. Not so much the one that you want, but the one that you’re living right now,” O’Neil said.
One spot of optimism from the Bank of America report is that many Gen Zers are doing what’s known as “loud budgeting.” They let friends know what social activities they can and can’t afford, which helps them to live within their means. Most say that helps them avoid pressure to overspend.
(VIDEO: Gen Z’s online activity makes them more vulnerable to scammers, experts say)
This browser does not support the video element.