How Gen Z is Reshaping Spending Habits in US

Reuters

New York: Gen Z adults in the United States are tightening their budgets—especially when it comes to dating as they grapple with rising living expenses, according to a new Bank of America (BofA) survey cited by Reuters on Wednesday.

The survey, which polled over 900 Americans aged 18 to 28, found that more than 50 percent of respondents spent no money at all on dating. Among those who did spend, 25 percent of men and 30 percent of women kept their monthly dating costs under $100.

Gen Z—currently in their late teens and 20s—are becoming increasingly cautious with their finances as they face higher costs of living and growing economic uncertainty.

“Gen Z is finding adulting to come with a higher price tag, and they’re feeling the cost of living overall,” said Holly O’Neill, president of consumer, retail, and preferred banking at BofA. “They’re dining out less, shopping at more affordable grocery stores, and setting budgets.”

Financial Responsibility a Priority

The findings also revealed that Gen Z values financial responsibility in romantic relationships, with many respondents highlighting it as an important trait in a partner.

Over half of those surveyed said they are saving more money, while 24 percent reported focusing on paying down debt to strengthen their financial standing.

Despite these efforts, economic challenges remain: more than 50 percent of respondents said they do not earn enough to live the life they want, and 55 percent reported lacking enough emergency savings to cover three months of expenses.

Decreasing Parental Support

The survey also showed a decline in financial assistance from family members. This year, 39% of Gen Z respondents reported receiving support from parents or relatives, down from 46% a year ago.

The amount has also decreased—only 22 percent now receive $1,000 or more per month, compared to 32 percent last year. Meanwhile, more than 50 percent now receive less than $500 monthly, up from 44 percent a year earlier.

“They’re challenging some of the stereotypes of young people and money,” O’Neill added. “Even though they’re facing economic barriers and high everyday costs, they are working hard to become financially independent.”

According to Reuters, the broader economic backdrop includes rising inflation driven by increased prices in everyday goods—from coffee to audio equipment—pressured further by import tariffs introduced under the Trump administration, which are increasingly being passed down to consumers.