Here's How Much Gen Z Is Struggling Financially This Summer
Summer is here, and with it the fun realization that -- between cost of living, student debt and rent -- your whole paycheck gets gobbled up in fewer bites than it should. In fact, a lot of Gen Z is spending the sunny season stressed about money -- like, really stressed.
If you've been feeling like you're falling behind financially, no matter how hard you work, you're not imagining it, and MoneyLion has the data to back you up.
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In a recent survey covering everything from summer income to potential travel plans, the results, surprising or not, indicate just how financially strapped everyone is feeling right now, especially Gen Z.
Key Findings
52% of people surveyed say they need more money this summer than last summer, including 22% who say they need “significantly more.”
Gen Z is feeling the pinch the hardest, with 33% saying they need "significantly more" money this summer than last, more than double the rate among the 15% of boomers who say so. They are also well above millennials (23%) and Gen X (20%).
23% of those surveyed between the ages of 18 and 24 say they’re moving back in with family or taking on roommates this summer due to financial pressure.
Though 39% of those surveyed plan to earn supplemental income this summer through a full-time, part-time or side job, that figure climbs to 62% for Gen Z and 52% for millennials.
Rebecca Aba Gaisie, energy transition researcher and sustainability & systems analyst at Eastern Illinois University, said, “One of the biggest reasons Gen Z is experiencing greater financial strain this summer is that they are entering adulthood during a period where the cost of living has increased faster than entry-level earning power. Housing costs, transportation, food, healthcare and digital subscription expenses now consume a much larger share of young adults’ income than in previous generations at comparable life stages.”
Here’s why Gen Z is feeling the financial heat this summer.
Paycheck to Paycheck Is the New Normal
If that "I'll save next month" feeling is the carrot you dangle in front of your financial goals every paycheck, you're in good company with Gen Z. The study showed that 35% of Gen Z, compared to 25% of millennials, are desperately grinding for cash to hopefully earn supplemental income this summer and say they'd work 60 or more hours a week. They'd also take on physically demanding or "dirty" work to the tune of 22%, whereas 30% would work below their education or skill level.
“Unlike older generations who may already own homes or have accumulated savings, many Gen Z individuals are navigating inflation without financial buffers or appreciating assets," Gaisie said. "At the same time, student debt obligations and a highly competitive labor market are creating additional pressure, especially for recent graduates and young professionals still trying to establish financial stability."
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The Debt Situation Is Genuinely Alarming
Times, they are a changing. According to Experian, the average consumer debt for Gen Z is around $34,328. However, when taking into account the many forms of personal debt, the overall personal financial burden for Gen Z averages roughly $94,101. That’s probably why the survey found that 15% of 18- to 24-year-olds planning to earn extra cash this summer are considering OnlyFans or other adult-content platforms as a side hustle.
“There is also a structural shift in how young adults experience economic participation," Gaisie said. "Many Gen Z workers are employed in sectors vulnerable to wage stagnation, contract work or inconsistent scheduling, while social expectations around lifestyle spending and online visibility can intensify financial stress.”
The Silver Lining: It's Not About Avocado Toast
To put this narrative to rest, hopefully permanently, statistics show that Gen Z spends less overall than other generations. The survey found that 41% of all Americans say they’re cutting back on dining out, entertainment and plans with family or friends. So the "just stop buying Starbucks" advice isn't going to fix a system where housing costs have outpaced wages for a decade.
That is probably why, to earn more this summer, 32% of people interviewed said they would work more than 60-hour workweeks, 31% would work overnight shifts, 28% would give up weekends off and 27% would skip a vacation with friends.
Final Take: Times Are Tough but Gen Z Is Navigating Them Anyway
The bottom line is that this summer's financial stress isn't a mindset problem, so no need to vibe-check. It's a cost-of-living problem, a housing affordability problem, a student debt problem and a wage stagnation problem all hitting you at once. If your bank account is looking rough right now, you're not alone.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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