Gen Z in the US turns to parents as inflation squeezes their budget

Half of the 1,091 people between 18 and 27 years old surveyed by the bank had no prospects of buying a home in the next five years.

Respondents were surveyed in April and May and the poll was weighted to fit national population parameters, including gender and race.

The survey found that 46% of young people were not prepared to save for retirement and 40% were not prepared to start investing in the next five years.

“When I talk to young people, especially Gen Z, I tell them to set a budget and stick to it,” said Holly O’Neill, president of retail banking at Bank of America.

Of those surveyed, 67% are making lifestyle changes to offset rising living expenses. Changes include budgeting, cutting back on restaurant meals, staying home instead of attending events, and shopping at cheaper grocery stores.

Savings for emergencies are another weak point, with 57% of Gen Z respondents lacking enough money to cover three months of expenses.