Bank of America Finds 66% of Gen Z Saving as 17% Spend Over Half Their Pay on Housing
Updated
Updated · Fox Business · May 18
Bank of America Finds 66% of Gen Z Saving as 17% Spend Over Half Their Pay on Housing
4 articles · Updated · Fox Business · May 18
66% of Gen Z adults are currently saving money, up from 63% in 2025 and 60% in 2024, according to Bank of America’s latest Better Money Habits study.
High housing costs are straining those efforts: 29% said housing is a top barrier to financial success, and 17% now spend more than half their paycheck on housing, up from 13% last year.
75% said they are actively looking for ways to spend less, while 42% remain comfortable declining social plans they cannot afford — a sign the “loud budgeting” trend is holding.
The study also found growing financial independence, with 34% receiving family assistance, down from 39% in 2025 and 46% in 2024, even as 40% still seek purchase validation from relatives or friends.
Among Gen Z savers, 36% put leftover cash into savings, while 22% contribute to a 401(k) and 22% use high-yield savings accounts, underscoring a focus on long-term financial security.
As Gen Z saves more than ever, why are they also embracing risky crypto and financial nihilism?
Will new federal savings programs be enough to solve Gen Z's historic housing affordability crisis?