KEY TAKEAWAYS
- More than half of Americans (52%) say they need more money this summer than they did a year ago, with 22% saying they need significantly more.
- Gen Z is the most financially stressed generation this summer, with 33% reporting a significant money shortfall compared to 23% of millennials and 15% of baby boomers.
- Many Gen Z adults started their working lives during or just after the pandemic, a period of high inflation and rising costs that made saving very difficult from the start.
- 62% of Gen Z plans to earn extra income this summer through side jobs, freelancing, or part-time work, showing how supplemental income has become a necessity rather than a bonus.
- 35% of Gen Z say they would work 60 or more hours per week if needed to cover their expenses.
- Nearly one in four adults aged 18 to 24 plan to move back in with family or share housing with roommates this summer to cut housing costs.
- 41% of Americans plan to reduce spending on eating out, travel, entertainment, and social activities this summer.
- Housing costs remain the biggest single financial burden for younger adults, with rents continuing to rise faster than entry-level wages.
- Practical steps like building an emergency fund, creating a monthly budget, and reducing high-interest debt can meaningfully improve financial stability for young adults.
- Financial education and open conversations about money are becoming increasingly important tools for Gen Z navigating a difficult economic environment.
MAIN TEXT CONTENT
Money is tight for a lot of people right now, but the numbers show it is especially tight for young adults. A new survey by MoneyLion, a U.S. financial services platform, asked Americans across all age groups how they are feeling about their finances this summer. The results make clear that Gen Z is in a harder spot than older generations, and the gap is significant.
What the Survey Found
The MoneyLion Summer Financial Outlook Survey found that 52% of Americans say they need more money this summer than they did last year. That is more than half the country feeling financially stretched. But when you break the numbers down by age, a clear pattern emerges: the younger you are, the harder things feel.
Among Gen Z respondents, 33% said they are facing a significant money shortfall this summer. Compare that to millennials at 23%, Generation X at 20%, and baby boomers at just 15%. Gen Z is not just a little more stressed. They are meaningfully more stretched than every other generation.
The numbers: 33% of Gen Z report a significant shortfall vs 23% of millennials, 20% of Gen X, and 15% of baby boomers. That is more than double the rate of boomers. The gap is not small.
Why Is Gen Z Feeling It the Most?
There are a few specific reasons why Gen Z is carrying more financial weight than older generations right now.
First, many Gen Z adults are at the very start of their careers. Entry-level jobs pay less, and it takes time to build savings, get pay rises, and climb the income ladder. When costs go up fast but pay does not, young workers feel the squeeze most.
Second, Gen Z entered adulthood during one of the most economically turbulent periods in recent memory. The pandemic hit in 2020, disrupting education, job opportunities, and early career paths. This was followed by years of high inflation, which drove up the cost of rent, food, transport, and almost everything else. Many young adults never had a chance to build a financial cushion before costs started rising.
Third, housing is brutal for this generation. Rents in most cities have risen sharply over the past few years, and buying a home is largely out of reach for people who are just starting out. A lot of Gen Z income is going straight to rent, with not much left over for savings or anything else.
Housing reality: For many Gen Z adults, rent takes up 40% or more of their take-home pay. Financial advisors usually recommend keeping housing costs below 30% of income. When that line is crossed, it becomes very hard to save or build any financial buffer.
- Starting careers with lower entry-level salaries than older generations had at the same stage
- Entering adulthood during the pandemic and then navigating years of high inflation
- Paying significantly higher rents as housing costs have risen across the country
- Carrying student loan debt or other borrowing from early adulthood
- Facing higher costs for food, transport, and daily necessities with limited income growth
Working Extra to Make Ends Meet
When your income does not cover your expenses, the most obvious answer is to earn more. And that is exactly what many Gen Z adults are doing. The survey found that 62% of Gen Z plan to take on extra income this summer through part-time jobs, freelancing, or side hustles. That is nearly two out of three young adults picking up extra work just to cover the basics.
Even more striking, 35% say they would be willing to work 60 hours or more per week if it meant getting their finances under control. That is a level of work that goes well beyond a typical full-time job and shows how serious the financial pressure feels for many young people.
Side hustle shift: Side hustles used to be something you did to afford holidays or luxuries. For a large portion of Gen Z right now, they are something you do to afford rent and groceries. That is a significant shift in what extra income actually means for this generation.
The kinds of extra work Gen Z is picking up include everything from delivery driving, tutoring, and retail shifts to freelance design, content creation, and online reselling. Some are exploring newer digital income options as well. The common thread is that the traditional single-job income is simply not enough for many young adults in 2026.
Moving Home and Sharing Housing
When income cannot be stretched far enough to cover rent, the next option is to spend less on housing. The survey found that nearly one in four adults aged 18 to 24 plan to move back in with family or into shared housing with roommates this summer.
A few years ago, moving back home after starting adult life might have felt like a step backwards. Today, it is becoming a sensible and widely accepted financial strategy. Living with family or splitting rent with multiple roommates can save hundreds of dollars a month, which for a lot of young people is the difference between going backwards and actually putting some money aside.
Not a failure: Choosing to move back home or find a roommate is a practical financial decision, not a sign that something has gone wrong. Many Gen Z adults are making this choice deliberately as a way to save faster and build a stronger financial foundation before moving out on their own again.
Cutting Back on Spending
Beyond earning more and spending less on housing, Gen Z is also making cuts to their everyday lifestyle. The survey found that 41% of all Americans plan to reduce their discretionary spending this summer. Discretionary spending means non-essential things: eating out, entertainment, travel, concerts, shopping, and social activities.
For young adults who have watched social media for years filled with images of holidays, brunches, and experiences, pulling back on these things can feel socially difficult. But the survey suggests a real shift in values is happening. Many Gen Z consumers are becoming more intentional about spending, looking for free or low-cost alternatives, and focusing on financial security over lifestyle.
- Eating at home instead of dining out
- Choosing free local activities over paid entertainment
- Reducing or pausing streaming subscriptions and memberships
- Finding lower-cost ways to socialise with friends
- Delaying or cancelling holiday or travel plans
Spending smarter: Cutting back does not have to mean cutting out fun entirely. Many Gen Z adults are discovering that some of the best social experiences cost very little. The shift toward more intentional spending can actually improve financial wellbeing without making life feel worse.
Practical Steps That Can Actually Help
The survey also highlights some of the most useful financial habits for young adults trying to get their situation under control. These are not complicated. They are simple, proven steps that make a real difference over time.
- Create a monthly budget: Write down what comes in and what goes out. Knowing where your money is actually going is the starting point for changing it.
- Build an emergency fund: Even a small buffer of a few hundred dollars can prevent a single unexpected expense from becoming a financial crisis.
- Pay down high-interest debt first: Credit card debt in particular can grow quickly. Paying it off saves money on interest and frees up income over time.
- Look for extra income that fits your skills: Tutoring, freelancing, selling unused items, or picking up extra shifts are all practical starting points.
- Set a simple long-term goal: Having something to work toward, whether it is a savings target, paying off a debt, or moving into your own place, makes it easier to stay motivated.
Financial education matters: One of the most powerful things young adults can do is talk about money more openly and keep learning. Whether it is through free online resources, a financial counsellor, or just honest conversations with people you trust, understanding money better leads to better decisions.
CONCLUSION
Tough Times, But Not Without Hope
The MoneyLion survey makes one thing very clear: Gen Z is not struggling because of bad choices or laziness. They are dealing with a set of economic conditions that would challenge anyone, including high rents, slow wage growth, and the long financial shadow left by the pandemic. The pressure is real and the numbers back it up.
At the same time, the way Gen Z is responding is encouraging. Taking on extra work, making smart housing decisions, cutting unnecessary spending, and looking for ways to build savings shows a generation that is adapting rather than giving up. These are exactly the kinds of behaviours that lead to better financial outcomes over time.
The bigger picture is that financial pressure does not last forever when you have a plan and stay consistent. Building even small habits now, like setting aside a little each month, tracking spending, and learning about personal finance, can create a very different financial reality in just a few years. The stress is real today, but so is the path forward.
Bottom line: Gen Z is the most financially pressured generation this summer, but the response from young adults shows real resourcefulness and resilience. The key is to turn short-term coping strategies into long-term financial habits that build stability, savings, and security over time.