The current financial landscape has shifted due to inflation and high interest rates, prompting Americans to adopt saving strategies. The 'no-buy 2025' challenge focuses on spending only on essentials. Younger generations, particularly Gen Z and millennials, face challenges in saving for homeownership, with saving rates at 4.4% and 5.3% respectively. 33% of Gen Z and 20% of millennials find saving for a down payment the hardest part of homebuying. Financial difficulties are compounded by student debt and rising cost of living, leading to a new reality for these cohorts.
Long gone are the post-pandemic-era days of revenge spending, when everyone was eager to open their wallets and splurge on everything from vacations to fashion.
A recent Empower study found that Gen Z is the generation that is least engaged in saving, with an average savings rate of 4.4%. Meanwhile, millennials have a 5.3% average saving rate.
33% of Gen Z and 20% of millennials say that saving for a down payment is the most difficult step of the homebuying process.
Millennials and Gen Z are navigating a completely different financial reality than past generations, facing high interest rates and soaring home prices.
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