Why Gen Z feels more financial pressure than you and how they’re coping

Saving for the future is still possible with Gen Z’s cost of living, delving into the financial landscape faced by today’s young adults. Historically, saving has been a cornerstone for achieving financial freedom, propelling individuals like Sara Blakely from a mere $5,000 personal savings to a billion-dollar enterprise, and it remains a critical strategy for meeting needs and mitigating challenging economic conditions.

BusinessDay Gen Z pick for July 2025 survey specifically explores Gen Z’s perceptions, practices, and technical knowledge regarding savings, examining their views on the concept, the hurdles they encounter, and why some within this generation are not actively saving.

Our survey on how often Gen Z saves a portion of their income revealed a strong commitment to financial planning, with a significant 77.3% of respondents consistently saving every time they earn. This high percentage indicates a widespread understanding and appreciation for the importance of setting aside funds, reflecting a thoughtful approach to their financial well-being despite contemporary challenges.

Meanwhile, 18.2% of Gen Z occasionally save from their income, indicating a less consistent but still present effort, while a small 4.5% rarely save. Notably, not a single respondent reported never saving at all, suggesting that saving, in some form, is an embedded aspect of Gen Z’s financial lifestyle and decision-making.

When asked about the percentage of their monthly income dedicated to savings, 45.5% of our Gen Z respondents impressively reported regularly saving more than 20% of their salary, demonstrating their commitment to reaching their financial goals. This substantial portion of income set aside highlights a proactive and disciplined approach to building their financial future. Following closely, 40.9% of the respondents save between 10% and 20% of their monthly income, while a smaller segment, 13.6%, allocates less than 10% to savings, which, while lower, still contributes to their overall financial resilience.

In unpredictable and dynamic economic conditions that fuel inflation and impact the cost of living, 63.6% of our respondents identified the high cost of living as their primary saving barrier. This directly reflects how economic shifts are creating significant financial hurdles for Gen Z, making it difficult to save. Additionally, 27.3% cited a lack of income sources as a major impediment, suggesting that many within this group would eagerly save if more employment opportunities or income streams were available to them. Low income was a significant barrier for 22.7% of respondents, indicating that their earnings are barely sufficient to cover life’s necessities. Furthermore, 13.6% acknowledged their lifestyle and spending habits as their biggest obstacle to saving, while 9.1% attributed their saving limitations primarily to debt repayment obligations.

When Gen Z respondents were asked if they believe they could buy a house in the future without external help from friends, family, or inheritance, 54.5% responded affirmatively, signifying their confidence that their savings, personal effort, determination, and income sources will enable them to achieve homeownership independently. Conversely, 22.7% expressed that family and inharitable is a stronge leverage for them to acquire a house. An equal 22.7% chose “maybe,” indicating uncertainty about their prospects for independent homeownership, yet notably, none of the respondents expressed no plans of owning a house, underscoring a universal desire for property ownership within this generation.

Our survey reveals that food and groceries consume a substantial 66.7% of Gen Z respondents’ monthly income, illustrating a direct correlation between economic inflation and the cost of living relative to their earnings. Rent and housing follow as another major expense, accounting for 47.6% of their monthly income, which could suggest that they either pay these bills monthly or strategically save separately for annual housing costs outside of their personal savings. Furthermore, 28.6% of Gen Z respondents confirmed that transportation significantly impacts their monthly finances, especially for those residing far from city centers where rent is prohibitively expensive, despite some governments’ efforts to mitigate these challenges through improved public transit. Finally, 19% of respondents noted that subscriptions, shopping, and entertainment also account for a notable portion of their monthly expenditures.

Recognising that discipline is crucial for consistent saving, whether through automated applications or self-regulation aided by budgeting tools, our survey explored Gen Z’s engagement with such resources. A majority of our Gen Z respondents, 45.5%, indicated that they do not actively use any saving or budgeting tools or apps, primarily relying on memory or notes for managing their finances. In contrast, 40.9% of respondents confirmed that they regularly utilise budgeting tools and apps to support their saving efforts, demonstrating a proactive approach to financial organisation. A smaller segment, 9.1%, reported having used budgeting apps or tools in the past but admitted to inconsistent usage. Lastly, 4.5% of Gen Z respondents revealed that they do not budget at all, underscoring varying levels of financial planning engagement within the generation.

When asked about their financial stress levels, the majority of our Gen Z respondents, an aggregate of 54.5%, reported a moderate level, indicating they are navigating a balanced range of financial pressure, neither overwhelmingly high nor notably low. A significant 27.3% of Gen Z participants experienced a low financial stress level, suggesting a degree of financial comfort or effective coping mechanisms. Conversely, 18.2% of respondents accounted for a higher financial stress level, pointing to more pronounced financial burdens and anxieties. It’s noteworthy that no respondents selected the option “I don’t feel stressed about money,” suggesting that some degree of financial consideration is universal among Gen Z.

Acknowledging that life at every stage brings its distinct pressures, and considering historical generational trends alongside technological advancements, evolving relationship patterns, and economic inflation, our survey sought to understand if Gen Z perceives greater financial pressure than previous generations. A significant 68.2% of respondents affirmed that Gen Z faces more financial pressure than any preceding generation. Additionally, 18.2% selected the “somewhat” option, suggesting a nuanced perspective where the pressures are significant but perhaps not entirely unprecedented. Lastly, 13.6% believed the financial pressure is approximately the same as for previous generations, only manifesting in different forms, indicating that some Gen Z individuals view contemporary challenges as a continuation of historical economic struggles rather than a unique escalation.

Fifty percent of respondents acknowledged that their immediate priority is to pay bills and stay afloat, effectively navigating daily life and meeting basic needs as challenges arise. Concurrently, a larger segment, 63.6% of the Gen Z participants, reported a focused intention on saving and investing for the future, demonstrating a deliberate and proactive approach to shaping their financial destiny. A smaller 4.5% are primarily concentrated on paying off their debts, indicating a commitment to achieving financial freedom from obligations. Notably, none of the Gen Z respondents who engaged in the poll expressed a desire to focus on spending for a lifestyle, underscoring a prevailing sense of financial responsibility and future-oriented thinking within this demographic.

When questioned about whether rising living costs have forced them to delay or cancel any significant life plans, such as schooling, moving out, marriage, or travel, a striking 50% of Gen Z respondents indicated “yes, multiple plans,” underscoring the widespread impact of economic pressures on their long-term aspirations. Another 36.4% confirmed that at least “one or two” of their plans have been affected, demonstrating that a substantial majority of this generation has experienced disruptions to their life trajectories due to financial constraints. Only 13.6% responded “no, not yet,” suggesting that while some have managed to avoid immediate impacts, the threat of future delays remains. No respondents aligned with the option of “I didn’t have plans to begin with,” reinforcing that Gen Z, despite facing immense financial challenges, still harbors significant life ambitions.

When asked what financial stability means to them and whether it’s achievable in their current stage of life, Gen Z offered diverse and insightful perspectives. One respondent defined it as “being able to meet my most important needs and still save 30% of my income,” with an optimistic outlook on achieving it, especially through entrepreneurial ventures like a cleaning startup. Others emphasised “being liquid” and “having sufficient cash flow to cater for rent and living expenses,” while one individual articulated it as “freedom and the ability to meet one’s daily needs,” though acknowledging it’s “not visibly achievable” currently unless circumstances improve. Another simply stated, “Being able to pay my bills on time and it is somewhat achievable,” reflecting a pragmatic view of their present financial reality.

When prompted to describe their ideal saving and spending lifestyle if they had full financial control without external pressures, Gen Z respondents highlighted a strong inclination towards substantial savings and mindful spending. Many expressed a desire to “save at least 30%,” with one ambitious individual aiming to “save/invest at least 80% of salary” if earnings were substantial. Others focused on strategic allocation, with one respondent proposing, “20% of earnings will always go into savings and I will reduce more lifestyle spending,” and another suggesting a 60% spending-to-40 % savings ratio. The overarching theme centered on prudent financial management, with a clear emphasis on saving over 50% and spending judiciously to secure future expenditures, all indicating a highly organized approach with specific systems for savings, investments, recurring expenses, and other responsibilities.