Inflation and uncertain economic times are “keeping many Gen Zers at home with their families,” according to an update from DailyPay.
Around 54% of 18-25-year-olds have “made the choice to live with their parents given the current economic climate,” according to a new study of over 300 Gen Z adults (ages 18-25) conducted online by The Harris Poll and commissioned by DailyPay.
With inflation hovering over 8%, Gen Zers early in adulthood “are having trouble staying financially stable given the rising costs of everyday items.” Only 28% of Gen Zers “say they are typically able to pay all of their bills on time.”
It’s not surprising “that 80% of this younger demographic feel the economy will either stay the same or decline over the next 12 months.” Furthermore, 41% are “worried it will be tougher to pay their bills (e.g., utilities, medical, credit card, insurance) due to high inflation, and 38% are concerned it will make buying staples/food more challenging for them.”
Gen Z also “appears to experience impacts when it comes to saving for the future.” About 78% say “they have been able to save less money compared to last year, the same amount as last year, or not at all.”
Many Gen Zers, however, “may not be pessimistic about the long-term future.” Only one-third (33%) are “worried it will be more challenging for them to buy a house because of inflation and only 20% are concerned about it being more difficult to pay for healthcare for parents or family members.”
Employers can also “take an active role in helping their employees survive inflation.”
The research “shows the timing of pay could help Gen Zers take care of monthly expenses.”
Nearly three-quarters (72%) of employed Gen Zers “say having access to their pay every day, as opposed to waiting until a scheduled payday, would help them pay bills on time.
Kevin Coop, CEO of DailyPay, said:
“This report demonstrates the need for employers to provide meaningful and impactful financial benefits to help their employees, particularly Gen Z, despite the negative effects of inflation.”
As noted in the update, this survey was “conducted online within the United States by The Harris Poll on behalf of DailyPay from October 3-5, 2022 among 3,037 U.S. adults ages 18 and older, among whom 353 are Gen Z (ages 18-25).”
The sampling precision of Harris online polls is “measured by using a Bayesian credible interval.”
For this study, “the sample data is accurate to within +/- 2.8 percentage points using a 95% confidence level.”