Read our full analysis for a more in-depth look at these trends.
Gen Z: A new economic force
Despite strong wage growth, high cost of living is weighing on Gen Z, prompting them to spend twice as much as they are saving.
March 2025
Key takeaways
- Between significant wealth and increased spending levels over the next 10 years, the consumption patterns of Gen Z will have a strong influence on the global economy. In roughly the next five years, they will have globally amassed $36 trillion in income and that figure is expected to surge to $74 trillion by around 2040, per BofA Global Research.
- Spending growth on necessary and discretionary items among Gen Z has been faster than the overall population, according to Bank of America credit and debit card data. While their bank deposit balances provide a buffer, Gen Z spending was nearly twice as much as they had in savings, possibly as the high cost of living exerts financial pressure.
- While increased wage growth helps ease some of this pressure, Bank of America data also suggests Gen Z is facing an increasingly difficult labor market. The number of Gen Z households receiving unemployment grew nearly 32% year-over-year in February and unemployment among new entrants to the labor market is on the rise.
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