April 2024
Consumer Morsel: When we were young
Growing up is expensive. Housing, cars, childcare and more are weighing on the young, but not at the expense of a rainy day fund.
Key takeaways
- While the spending growth on credit and debit cards of younger generations (Gen Z and Millennials) appears to be soft, according to Bank of America internal data, their wage and salaries growth has been strong. Why the disconnect?
- One reason could be that the young are spending on housing (rents and mortgages), new cars, and childcare — costs which aren't always paid on cards. Growing up is expensive.
- Also, younger generations appear more financially cautious — according to recent survey results, Gen Z and Millennials like to have savings and say they are more likely to have a rainy day fund than some older generations. One explanation for their cautiousness could be the impact of the pandemic and high inflation on their formative years.
Read our full analysis for a more in-depth look at these trends.
