At Extreme Investor Network, we understand the challenges that young adults face in today’s economy. In a recent report from Bank of America, it was revealed that nearly half of Gen Zers rely on financial assistance from their families, with 52% feeling that they don’t make enough money to live the life they want.
The high cost of living, especially for food, gas, and housing, is a major factor contributing to financial stress among Gen Z. Compared to previous generations, Gen Zers are earning lower wages, carrying larger student loan balances, and spending more on necessities. This has led to 15% of Gen Zers maxing out their credit cards and facing potential delinquency on payments.
Housing costs, in particular, present a significant barrier to financial stability for young adults. Experts recommend sticking to the 50-30-20 rule, which allocates 50% of income to necessities like housing, 30% to discretionary spending, and 20% to savings. However, many young adults are spending well over 30% of their income on housing, with some allocating more than 50%.
The challenges faced by Gen Z are not unique, as a Bankrate survey found that most Americans feel they don’t earn enough to live the life they want. Inflation, housing costs, and college affordability are all contributing factors to financial insecurity among adults of all ages.
At Extreme Investor Network, we provide valuable insights and practical tips to help individuals navigate the complexities of personal finance. Our goal is to empower our readers to make informed decisions and achieve financial success in today’s challenging economic landscape. Subscribe to Extreme Investor Network for more expert advice on personal finance and wealth-building strategies.