Why Gen Z & Millennials Hesitate to Put Money on the Line

• Despite earning more money, many millennials and Gen Z individuals struggle to allocate funds for investments due to rising expenses.
• The Youth & Money in the USA survey found that while 63% of young adults see investing in the stock market as a great idea, 61% do not contribute to monthly retirement savings.
• A significant portion of younger adults cannot cover more than two months' worth of bills, with just 11% having enough savings to cover living expenses for over a year if unemployed, highlighting their financial challenges.

Many millennials and Gen Z individuals are finding it difficult to find place in their budgets for investments, even though they are making more money.

According to the most recent Youth & Money in the USA survey conducted by CNBC and Generation Lab, 63% of young adults think that investing in and building money in the stock market is a fantastic idea, but many are not taking advantage of this opportunity. Actually, 61% of people do not make monthly retirement savings.

In late January, 1,013 Americans between the ages of 18 and 34 were surveyed for the study. One of the main culprits is their inability to save and invest money due to rising expenditures.
According to the survey, 48% of people are unable to pay for more than two months' worth of bills, and just 11% have enough funds to cover their cost of living for more than a year if they were unemployed.

Younger folks are making somewhat more money than they were a year ago, but because of the high cost of living, they are finding it difficult to invest in retirement accounts and save for emergencies. The cohort will give careful consideration to this aspect throughout the next presidential election season.

Income Trends and Financial Challenges among Young Adults

According to findings from the Youth & Money in the USA survey, a significant portion of younger adults have experienced increases in their income over the past year. Specifically, 32% reported making a bit more money, while 10% reported making a lot more, and 31% reported having about the same income level.

However, despite these income increases, many individuals within this generation face challenges in building savings.
Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York, highlighted this issue, noting that the generation generally lacks significant savings. This trend, according to Cornell, contributes to the reluctance or inability of many individuals to save for retirement or to invest.

Just 3% of people claim to make enough money to be "extremely comfortable," 18% say they have enough to "live pretty comfortably," and 38% say they barely make ends meet.

Of those questioned about their living situations, 27% stated they have roommates and 40% said they live with relatives. According to the survey, just 13% of people live alone.

Because housing costs are so high, there are historically more young individuals staying at home than ever before, according to Susan M. Wachter, a real estate and finance professor at The Wharton School of the University of Pennsylvania.