Financial Squeeze: Gen Z's Cash Reserves Drop as Costs Rise and Loans Restart
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The percentage of people able to pay unexpected $200-$600 expenses in cash has fallen since early 2022, especially for adults aged 18-26.
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Household budgets are squeezed by cost-of-living increases over the past few years.
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More younger adults have to restart federal student loan payments, adding financial pressure.
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As cash reserves diminish, more people are using debt like credit cards or loans to cover emergency costs.
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Gen Z's reduced ability to pay emergency expenses in cash may reflect dwindling savings and resumed student loan payments.