Gen Z Hispanics are tightening their belts to save money

A Bank of America study concludes that 46% of Americans in this age group depend on their parents to make ends meet.

Published by

16 de julio, 2024

A Bank of America report analyzes Gen Z trends when it comes to saving and making financial decisions. This information shows that the way in which young Hispanics manage their economy and finances is changing to be more frugal.

The report highlights that these changes are taking place during a difficult time. 46% of these young people, aged 18 to 27, depend on their parents to make ends meet. However, the report also highlights the good habits of Hispanics in this age group.

The Bank of America study analyzes responses from young Generation Z respondents surveyed between April and May 2024. It focuses on the habits and behaviors of this generation when it comes to managing their wealth and income.

High cost of living difficulties at the end of the month

Rising costs affect the ability of 18- to 27-year-olds to save. According to Bank of America data, 52% of this generation say they don't earn enough to "live the life they want." This is a figure that resembles that of previous years.

Given the subjectivity of this statement, Bank of America stresses that it refers to not being able to cover most non-essential expenses. However, essentials are also at risk, as half of young people receive help to make ends meet with 46% coming from family.

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According to Bank of America, 22% of "zoomers," members of this generation, who are no longer students receive up to $1,000 in monthly assistance. The percentage rises to 55% when aid is reduced to $500;

According to the report, aid goes to groceries and personal care items (57%); rent and utilities (53%); phone plan (53%) and health insurance and other payments (49%).

Hispanics Tighten Their Belts

Bank of America reports that Generation Z Hispanics are changing their spending and saving habits and behaviors in order to improve their financial situation and cope with the high costs of living. The report notes that 33% of Hispanics surveyed began to follow a budget (vs. 18% of the general population) and stopped attending events with friends (34% vs. 25% of the rest) due to rising prices.

Despite this, 68% of Hispanics do not have enough savings to cover three months worth of expenses.

The top obstacles Generation Z Hispanics face are rising living costs (54%), lack of sufficient income to meet financial goals (39%) and the economy or the economic outlook (36%).

28% of young Hispanics said their income allows them to afford some non-essential expenses each month for leisure, travel and so on. Twenty-seven percent said their earnings provide for essential expenses but "not much else." They are not able to afford much more.

Gen Z goals

Not being able to achieve their life goals is a major concern for Zoomers. 38% of them believe it's 'mission impossible' because of their low income. That's a two-point increase compared with 2023.

The generation's financial goals are to buy a home (50%); get married (33%); buy a car (32%); live alone (31%); raise a family/have children (28%); move in with someone else (24%); improve credit (24%); and pay off debt (22%).