By Owen Tucker-Smith

Gen Z spends more than it saves, according to a new report from Bank of America.

The average member of Gen Z, defined in the report as those born after 1995, doesn't have enough in balances to cover one month of spending, according to the bank's internal deposit account data.

In February, they spent almost twice as much as they had saved. And by 2030, the bank said, their global spending is set to grow from $2.7 trillion to $12.6 trillion.

In other findings from the report:

-- On a per-household basis, the generation's spending growth has outpaced the rest of the population. Gen Z discretionary spending, which includes travel and entertainment, has risen more than 25% year-over-year. More than half of survey respondents said they don't make enough to "live the life they want."

-- Gen Z employees have experienced stronger wage growth than their peers in other generations, but the amount of Gen Z households that receive unemployment shot up 32% year-over-year in February.

-- The generation's income is expected to reach $36 trillion in the next five years. "It's likely they will be among the most disruptive generations to economies, markets and social systems," the bank said.

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(END) Dow Jones Newswires

March 14, 2025 12:18 ET (16:18 GMT)

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