© Reuters. FILE PHOTO: A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. REUTERS/Carlo Allegri
(Reuters) – Gen Z is struggling to save and meet its financial goals in a world gripped with decades-high inflation and challenging economic conditions, a Bank of America (NYSE:) survey showed on Tuesday.
More than one-third of Gen Z consumers, or those aged between 18 and 25, that were surveyed by the bank’s personal finance education platform, Better Money Habits, had no investments, with most of them saying that they were short of spare funds.
Nearly half of the generation is also under some form of debt, including student loans and credit cards, while 40% find it difficult to afford day-to-day necessities owing to surging rents and home prices, according to the survey.
Cash-strapped Americans have been punished by decades-high inflation in the past months, as pandemic-induced supply chain snags and the economic fallout of Russia’s invasion of Ukraine led to skyrocketing prices.
The survey participants also said the federal student loan freeze had allowed them to maintain their standard of living. Only 21% of Gen Z and 23% of Millennials surveyed said they have been able to pay down their college loans without collecting interest.
Last month, the U.S. government announced it would forgive $10,000 in student loans for millions of debt-saddled former college students. The government would resume requiring the payment of remaining student loans that was paused during the pandemic after Dec. 31.
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