Gen Z’s Money Mindset
The Bank of America study Confronted with Higher Living Costs, 72% of Young Adults Take Action to Improve Their Financial Health explores how Gen Z is navigating the realities of adulthood. Facing rising living costs, this generation is actively making choices to save, reduce expenses, and gain control over their finances, highlighting both their resilience and their need for practical and user-friendly financial tools.
“ Gen Z (ages 18-28) is finding adulthood more expensive than expected. Facing this, nearly three quarters of them are taking action to improve their financial health, according to Bank of America’s 2025 Better Money Habits® financial education study (PDF), published today.” (Bank of America, 2025).
Key findings from the study include:
" Over the last 12 months, 72% took steps to improve their financial health, such as putting money toward savings (51%) or paying down debt (24%). Nearly two-thirds (64%) focused on reducing expenses – 41% cut back on dining out and 23% shopped at more affordable grocery stores." (Bank of America, 2025).
"And more are going it alone. While 39% receive financial support from parents and other family members, this is down from 46% a year ago. And they are getting less money – 22% receive $1,000 or more per month compared to 32% a year ago, and 54% receive less than $500 per month compared to 44% a year ago." (Bank of America, 2025).
"When it comes to their romantic lives, many Gen Z aren’t spending money on dates – with roughly half of men (53%) and women (54%) spending $0 a month, and 25% of men and 30% of women spending less than $100 per month." (Bank of America, 2025).
"According to the study, about half (51%) of Gen Z surveyed say the high cost of living is a barrier to financial success. Total monthly spending is higher than they thought it would be for 35%, especially for everyday expenses including groceries (63%), rent and utilities (47%) and dining out (42%).” (Bank of America, 2025).
What really hits me is how determined Gen Z is to take charge of their money, even when life feels expensive and uncertain. We’re cutting back on little luxuries, tracking spending, and finding ways to save (basically figuring out adulthood on the fly). From a design perspective, it’s a huge reminder that financial tools need to feel approachable, intuitive, and supportive and not intimidating. Apps that help people track their money, budget, or pay off debt aren’t just convenient, they can actually reduce stress and make users feel more in control. I also see a bigger lesson here: design isn’t just about screens or features, it’s about understanding how people live, what worries them, and how you can make their day-to-day a little easier.
References.
Confronted with higher living costs, 72% of young adults take action to improve their financial health, finds Bofa better money habits study. Bank of America. (2025, July 30). https://newsroom.bankofamerica.com/content/newsroom/press-releases/2025/07/confronted-with-higher-living-costs--72--of-young-adults-take-ac.html
Flyer, F. (2022). Calendar [Photography]. Unsplash. https://unsplash.com/photos/calendar-VbdUnqoe5UU
Based on Confronted with Higher Living Costs, 72% of Young Adults Take Action to Improve Their Financial Health (~40%), combined with my own reflections on design, banking, and user experience (~40%), and text synthesized, structured, and edited with the assistance of AI (~20%). All interpretations remain the responsibility of the author.
