The Impact of Inflation on Gen Z's Fiscal Conservatism
Nearly three in four Gen Zers have reduced their spending in response to rising inflation, with young adults opting to cook at home, spend less on clothes, and limit grocery purchases to essentials. This generation, born between 1997 and 2012, is experiencing higher inflation rates for the first time, with prices rising 4.7% in 2021 and 8% in 2022. Bank of America's survey reveals that Gen Z spending declined by over 2% between May 2022 and May 2023, while spending increased among older generations. Many Gen Zers have faced financial setbacks, with a significant portion lacking emergency funds and resorting to borrowing money or taking on side hustles for financial stability.
