Joe Cruz works three jobs in Austin. But because of debt and the rising cost of living in Texas, the 26-year-old moved in with his dad a couple years ago and has been there since.
“I tried the whole renting thing,” Cruz tells TIME. “It was just outrageously expensive, so I moved back home, and I’ve been there for about two years now—paying off student debt, credit cards, car payment, that stuff.”
Cruz is one of the many people in his generation who receives some form of financial help. A new report released last week by the Bank of America’s Better Money Habits financial education team found that 46% of Gen Zers between the ages of 18 and 27 rely on financial assistance from their parents and family. The survey—which polled more than 1,000 Gen Zers in April and May—found that 52% of respondents said they don’t make enough money to live the life they want, pointing to the cost of living as one of the main financial challenges Gen Z faces.
“With them relying so much on others for support, it really kind of explains that they don’t feel that they have enough money to live the life that they want to live,” says Shannah Stephens, community banking executive at Bank of America. “They’re sharing with us that it’s this insufficient income, all of this inflationary environment, that really makes it difficult for them to actually achieve their financial goals and ambitions.”
Gen Zers who receive financial assistance—either from their family, the government, or friends—said they used that money to help pay for groceries and toiletries, rent and utilities, phone plans, and health-related expenses, the report found.
Many of the Gen Zers surveyed for the report said they’re pushing back major milestones, including buying a house, saving for retirement, or starting to invest. About 54% of them said they don’t pay for their own housing. Of those who do, nearly two-thirds said they’re spending more than 30% of their monthly paycheck on housing. Stephens says that general financial advice dictates that people should spend no more than 20-30% of their monthly income on housing.
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Cruz went to university in upstate New York and lived in New York City and Washington, D.C. up until the COVID-19 pandemic. He moved back home to Austin during the pandemic and later tried renting a house with two friends for about a year, but became frustrated with how much he was spending on rent.
Now, Cruz has a full-time job working as an account executive for a print shop that produces merchandise for progressive political campaigns, and he works part-time in retail and landscaping. While living on his dad’s farm, Cruz pays what he can; his dad also subsidizes his rent because Cruz often helps out on the property. Cruz drives everywhere, and his dad helps him pay for gas too.
Bianca Alvarado, 24, lives in Burbank, Calif. and her parents pay for her car payments, car insurance, and sometimes her groceries. In the past, she’s paid what she could to help with the car payments, but Alvarado has been struggling to find stable work, and was recently let go from her part-time job in public relations. To make extra cash, she occasionally makes deliveries for Uber Eats—which she says she’ll likely have to do more of as she looks for her next job.
“That’s not something I want to do,” she admits. “I’d rather be in an office all day; I like having co-workers, and having that type of environment. But with where things are right now, it’s just kind of what I do to make ends meet when needed.”
Alvarado says she feels lucky that she can turn to her parents for help, but adds that her parents sometimes struggle too; there have been times when her dad’s credit card was declined for her car insurance payments, and she had to dip into her savings to pay the bill.
“It makes me feel really defeated,” Alvarado says about having to turn to her parents for financial assistance. “I don’t want to have my family help me—I wish I could be an independent girlie and not have to depend on anyone for anything. But that’s just, unfortunately, the society or the economy that we live in right now. Things are rough.”
Both Cruz and Alvarado say they’re not surprised that nearly half of Gen Zers surveyed for the Bank of America report rely on financial assistance from their family. In fact, Cruz says he thought the number would be even higher.
“It makes me feel very frustrated. It makes me feel very forgotten about by the city—the people in charge of regulating housing and regulating price increases,” Cruz says. “We’re turning to alternatives, like living at home, living with partners, multiple people in houses.”
The Bank of America report found that nearly 70% of Gen Zers surveyed are implementing lifestyle changes, including cutting back on dining out, passing up on outings with friends, and shopping at more affordable grocery stores.
“I think that’s what’s so refreshing about Gen Z, and I think maybe what’s misunderstood about Gen Z,” Stephens says. “Gen Z is really taking control of their finances. They are making the necessary changes because of these high housing costs. They’re making changes in other aspects of their lives so that they can try to live more of the life that they’re wanting to live.”
Alvarado lives in an apartment with a roommate now, but recently found out that her rent will be increasing. She’s looking to move later this summer. She says it’s “disheartening” to think about how she can’t afford to live on her own.
Alvarado says her dad has told her that he hopes she will be more financially independent by the time she turns 25.
“I’m really hoping I can be, but also—what if I can’t? There’s always that thought in the back of my mind,” she says.
“I don’t think anyone wants to be mooching off their parents,” she continues. “We don’t want to be depending on our parents for things. We want to be independent. But that’s just not possible.”