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Seventy three percent of Gen Z consumers between the ages of 18
and 26 have changed their lifestyles because of increased
prices, according to a Bank of America poll of more than 1,100
respondents.
Of those, 43% chose to cook at home instead of dining out, 40%
spent less on clothes and 33% pared down grocery purchases to
the essentials.
"Gen Zers are definitely looking for ways to improve their
financial health," said Holly O'Neill, president of retail
banking at Bank of America told Reuters. "They are proactively
making lifestyle changes to combat inflation.
Gasoline and food prices have been rising in the U.S., eroding
consumer finances, prompting the Fed to keep interest rates
elevated.
Bank of America's CEO Brian Moynihan said last month that
consumer cash balances are coming down, even though their
finances are healthy.
"Consumer repayments still remain strong," O'Neill added. "From
a delinquency perspective, we are still not where we were
pre-pandemic. Even though there has been a change in spending
and payment behavior, the consumer is still very healthy."
Nearly four out of 10 Gen Z respondents also experienced a
financial setback in the last year, prompting them to stop
saving or take on more debt.
They also remain less optimistic on economic conditions
improving. A majority of respondents said the economy was
unlikely to improve over the next year.
While Gen Z is cutting back, older generations, including
Boomers, increased spending as much as 5%, the report showed.
(Reporting by Nupur Anand and Lananh Nguyen in New York; Editing
by Stephen Coates)
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