Younger Consumers Juggle More Ways to Pay the Bills

Survey Participants

2,747

Number of U.S. adult consumers surveyed for the report.

Everyday Spending Cutbacks

69%

Percentage of all consumers who report cutting back on everyday spending.

Gen Z Borrowing from Family/Friends

38%

Percentage of Gen Z consumers who have borrowed money from family or friends.

§ 01 Executive Snapshot

What: Younger consumers are layering multiple strategies to cope with rising living costs.
Who: U.S. adult consumers, particularly bridge millennials, millennials, and Gen Z.
Why it matters: Understanding how younger generations manage financial stress can inform businesses and financial institutions about emerging consumer needs in a high-cost environment.

2,747 U.S. adult consumers surveyed from Jan. 2 to Jan. 5 for the report.
69% of all consumers report cutting back on everyday spending.
38% of Gen Z consumers have borrowed money from family or friends, compared to 22% of the full sample.

Historical patterns show older consumers rely more on restraint and less on additional income sources compared to younger generations.
The report indicates that traditional coping mechanisms are becoming less effective, necessitating innovative solutions from financial service providers.

Immediate consequences include potential shifts in consumer behavior leading to new product offerings from banks and payment firms.
Long-term implications suggest a need for tools that simplify financial management for consumers under pressure from rising costs.

Potential risk includes the effectiveness of current coping strategies declining, affecting consumer confidence.
Competition from alternative financial solutions that may better address the needs of consumers facing financial stress.

Monitoring the effectiveness of coping strategies among consumers in future surveys.
Observing innovations in financial products aimed at easing the burden of managing multiple coping strategies for consumers.

§ 07

What strategies are younger consumers using to cope with rising living costs?

Younger consumers are layering multiple strategies, including cutting back on spending and borrowing from family or friends.

Why is it important to understand how younger generations manage financial stress?

It can inform businesses and financial institutions about emerging consumer needs in a high-cost environment.

How do coping mechanisms differ between younger and older consumers?

Older consumers tend to rely more on restraint, while younger generations are seeking additional income sources to manage financial pressures.