Survey: Gen Z aims to cut spending, save more
Despite occasional splurging, the majority of Gen Z consumers are taking steps to improve their finances.
That’s according to a new report from Bank of America, which found that over the last 12 months, 72% of those between the ages of 18 and 28 took steps to improve their financial health, such as putting money toward savings (51%) or paying down debt (24%). Nearly two-thirds (64%) are focused on reducing expenses, with the most common practices being cutting back on dining out (41%) and shopping at more affordable grocery stores (23%).
According to the study, about half (51%) of Gen Z surveyed say the high cost of living is a barrier to financial success. Total monthly spending is higher than they thought it would be for 35%, especially for everyday expenses including groceries (63%), rent and utilities (47%) and dining out (42%).
Despite the majority taking steps to improve their financial health, Gen Z still finds ways to enjoy the little things. Almost six-in-10 (57%) buy themselves a small “treat” at least once a week. However, for over half (59%), this leads to overspending.
“Gen Z is challenging the stereotype when it comes to young people and their finances,” said Holly O’Neill, president of consumer, retail and preferred banking at Bank of America. “Even though they’re facing economic barriers and high everyday costs, they are working hard to become financially independent and take control of their money.”
A third (33%) of Gen Z respondents said they are stressed about their finances, and of those, 52% say economic instability is a root cause. When stressed about their finances, the overwhelming majority (90%) are likely to take action, including checking their bank account balance (69%), making a budget (64%), getting ahead on paying bills (46%) or other smart money moves.
[READ MORE: Survey: Consumers cutting back in these categories…]
For some, stress leads to avoidance or splurges. A third (33%) of Gen Z are likely to avoid thinking about or taking positive actions on their finances when they’re feeling stressed financially, while a similar share (30%) are likely to treat themselves to a purchase when worried about money.
Two-thirds (66%) of Gen Z say they don't feel pressured by their friends to spend beyond their means, and 42% feel comfortable declining social activities and letting their friends know it’s because they can’t afford them. Financial health also matters in romantic relationships for Gen Z – with nearly four-in-five (78%) saying that financial responsibility is an important attribute when choosing a significant other.
Bank of America’s survey was conducted online from April 4-25, 2025, by Ipsos. The study was based on national samples of 1,069 general population adults (age 18 or older) and 915 general population Gen Z adults (age 18-28).
