Survey Finds That 33% of Gen Z Adults Still Receive an Allowance from Their Parents - Why Is That?

There's nothing like the good old days when you lived at home with your parents, received an allowance and didn't have to stress about money. 

For most adults, those days are long gone. But the key word there is most. 

According to a Morning Consult survey of approximately 1,000 Gen Zers, 33% of adults say they receive an allowance or some form of financial assistance from their parents.

Yes, that's right. Approximately one-third of those surveyed are still getting that allowance you're dreaming of. But there's more to it than that.

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The Stress Is Real

While many people from other generations believe that Gen Zers are slacking and taking advantage of their parents, this is a stereotype. This generation is faced with unique financial circumstances that challenge them at every turn. 

For example, it's never been more expensive to attend college. That's in addition to record-high inflation, not to mention concerns about grocery prices, the cost of housing and the cost of fueling their vehicles. 

Nearly 40% of survey respondents said "they're barely scraping by or completely underwater financially."

In other words, there may be a good reason why some of these people are turning to their parents for financial support.

But all of these challenges haven't soured Gen Z on the future. Here are some additional data points from the survey:

• 37% of Gen Zers primarily use debit cards for clothing purchases, but brands should keep an eye on the increasing use of buy-now-pay-later services.
• 60% of Gen Zers plan to retire at age 65 or younger.
• More than 60% say they're optimistic about their financial future.
• A majority of respondents believe they'll perform better financially than their parents. 

Trending: If the United States had access to today’s high-yield savings accounts rates in 2015, it wouldn’t need to save another penny.

How Gen Z Is Tackling Financial Challenges

Gen Z is facing their financial hurdles head-on, demonstrating resilience and strategic thinking far beyond their years. Despite the skepticism of older generations, this demographic is not taking the path of least resistance. 

Instead, they’re seeking ways to better their financial futures and setting ambitious goals.

Many Gen Zers are beginning to invest and save at an early age, recognizing the power of compound interest and the importance of financial security. They are not only relying on traditional savings accounts but are also venturing into stocks, bonds and retirement funds. 

This proactive approach to finance, combined with a keen awareness of the economic landscape, sets them apart.

Additionally, spending habits reflect a blend of caution and savvy. The preference for debit cards over credit cards suggests a wariness of debt, while the interest in buy-now-pay-later services indicates a desire for financial flexibility without the long-term commitment of traditional credit.

Education on personal finance has become a cornerstone of Gen Z’s strategy. Many turn to online resources, financial literacy apps and social media to educate themselves on managing money, investing and budgeting. 

This self-education trend is empowering Gen Z to make informed decisions that align with their financial goals.

Regardless of age, consulting a financial adviser can help you manage your finances today and prepare for a better tomorrow. 

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

Chris Bibey has written about personal finance and investment for the past 15 years in a variety of publications and for a variety of financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.