A new survey shows that Gen Z is taking on financial responsibilities earlier than past generations, with many managing bills, credit cards, and budgeting better than their older peers.
The survey, carried out by Talker Research, involved 2,000 Americans from four generations—500 each from Gen Z, millennials, Gen X, and baby boomers. It looked into when Americans feel they truly become adults, with most saying the reality of adulthood hits at age 27, rather than the traditional age of 18.
For Gen Z, however, financial independence is happening sooner than expected. By the age of 22, 56 percent are already paying their own bills, 41 percent have a credit card, and 46 percent have learned how to budget—tasks that were usually linked to later adulthood.
In comparison, millennials reached these financial milestones around age 28, while Gen X and baby boomers generally opened savings accounts at about 26.
Despite Gen Z’s early progress in managing finances, they are behind when it comes to securing long-term financial stability. A significant 53 percent have not contributed to a 401(k) or retirement plan yet, and 49 percent have not bought life insurance. Millennials, on the other hand, generally purchased life insurance by age 28, while Gen X and baby boomers did so in their early 30s.
Even though Gen Z is behind in these areas, they are serious about financial advice. The survey found that 64 percent prioritize saving early, 46 percent have created a budget, and 41 percent are focused on building credit. These good financial habits are ones older generations wish they had adopted sooner—76 percent of all respondents regretted not taking their finances more seriously in their 20s.
Compared to older generations, Gen Z is also more hopeful about their financial future. Only 7 percent believe they will never achieve financial stability, unlike 30 percent of millennials, 53 percent of Gen X, and 66 percent of baby boomers who feel the same way.
Kevin Mayeux, CEO of the National Association of Insurance and Financial Advisors, stressed the importance of future planning.
“While it’s worrying that so many young people aren’t contributing to their retirement or buying life insurance, it’s never too late to start,” he said. “Working with a knowledgeable financial advisor can help you feel more secure today and in the future.”