Portrait of a young African American woman on vacation in Barcelona shopping online on the street.
Gen-Z is learning the hard way that being an adult is well, ghetto, to say the least.
If only we could all go back to the days of not paying bills, living under our parents’ roofs and not having a care in the world. But alas, here we are in the hood known as “adulthood.”
Some realize it when they’re splitting a one-bedroom apartment three ways just to afford rent in a decent neighborhood or city to advance their careers (and if you live in New York, San Francisco or Los Angeles, forget about it). Others feel it at the grocery store, watching that shopping run turn into a calculation on how long you can survive on Ramen noodles and Poppi. For many, it’s the moment they understand that the life they thought their salary would provide feels perpetually out of reach.
Still, even with the harsh reality check that hits after graduation (or that first “real” job), Gen Z isn’t folding. Like millions of Americans, they’re staring down huge economic barriers, but also refusing to let that stop them from taking control of their money.
According to Bank of America’s 2025 Better Money Habits financial education study, more than half of Gen Z respondents—51 percent—cite the high cost of living as their primary barrier to financial success. From soaring rent prices to escalating grocery costs, these young adults are navigating an economic landscape that feels fundamentally different from what previous generations experienced at similar ages (as if being in school or even graduating during a global pandemic weren’t enough).
“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.”
Rather than accepting financial struggle as inevitable, however, nearly three-quarters of Gen Z took concrete action over the past year to improve their money situation. They’re putting money into savings accounts, paying down debt, and actively working to change their financial trajectory. One thing working in their favor? They’ve got financial know-how at their fingertips—literally.
They’re also questioning traditional approaches to money management while developing new strategies that fit their reality (because content creation didn’t exist 20 years ago, but if it’s going to help advance their lives financially, why not?).
The approach often involves making trade-offs that previous generations might not recognize. They might prioritize experiences over possessions, choose financial flexibility over traditional stability markers, or focus on debt reduction before wealth building. These aren’t necessarily wrong choices, yet they’re adaptations to an economic environment that requires different strategies.
That’s not to say they’re not finding ways to treat themselves. Even on a budget, many Gen Z adults have found creative approaches to balance immediate happiness with long-term financial health. Because, at the end of the day, we only have one life to live, and who wants to spend it unhappy everyday (even if you’re on a tight budget). The study found that most treat themselves to something small each week, whether that’s a specialty coffee, a new lip gloss, or a takeout meal after a particularly difficult day.
Sometimes they’re celebrations of wins, big or small. Other times they’re attempts to brighten challenging days or create moments of joy amid financial stress. The behavior reveals a generation trying to maintain their quality of life and mental health while navigating economic pressures that feel unprecedented.
Of course, this approach creates its own challenges. The majority of young adults acknowledge that these small treats sometimes lead to overspending, creating a cycle where short-term mood boosts can undermine longer-term financial goals.
It’s a tension that many are still learning to navigate.
Big picture? Data suggests that despite various pressures, young adults haven’t depleted their savings to manage higher costs. Their median deposit levels remain elevated compared to pre-pandemic levels, indicating that while they face real challenges, they’re finding ways to maintain some financial cushion.
Adulthood may still feel like the hood some days, but Gen Z is showing up, switching strategies, and proving that even when the road to financial freedom looks different, life is still to be lived.