79% of Gen Z Americans Are Delaying Major Life Plans as Cost of Living Rises

Nearly eight in 10 Gen Z Americans have delayed, reconsidered or abandoned at least one major life plan because of rising costs, as soaring expenses force younger adults to rethink homeownership, education, having children, marriage, and starting a business.

A Credit One Bank survey of 1,000 US adults, produced and distributed by Stacker, found that 79% of Gen Z respondents had changed at least one major life plan because of rising costs. Overall, 83% said managing household costs had become at least somewhat harder over the previous two years.

Among Gen Z respondents, 35% said they had delayed buying a home, while 33% had put off additional education or job training. Another 29% said they had delayed having a child. Marriage and entrepreneurship were also affected, with 24% saying they had postponed marriage and 22% saying they had abandoned plans to start a business. The figures are not mutually exclusive, meaning respondents could have changed more than one major life plan.

Housing and Education Face Delays

Only 21% of Gen Z respondents said rising costs had not changed any of their major life plans. That compared with 54% of Gen X respondents and 59% of Baby Boomers. Housing was a particularly significant pressure point for younger respondents. Thirty-six per cent of Gen Z said housing costs were preventing them from saving anything, the highest share among the generations surveyed.

Across all respondents, 44% said housing costs were either preventing them from building savings or represented their biggest financial stress. Older Americans were also reporting changes to long-term plans. Twenty-seven per cent of Baby Boomers and 24% of Gen X respondents said rising costs had pushed back their planned retirement date.

Everyday Costs Continue to Strain Budgets

The pressure was not limited to major financial milestones. The survey found that 57% of US consumers ended the month with less money than expected at least more often than not. More than a quarter said this happened almost every month, while another 29% said it happened more often than not. Groceries and household staples were the biggest single budget strain for 40% of respondents, compared with 23% who identified rent or mortgage payments.

The figures varied by generation. Half of Baby Boomers identified groceries as their biggest financial strain, compared with 29% of Gen Z. Among Gen Z, 29% identified rent or mortgage costs as their biggest financial strain. Overall, 83% of respondents said managing their cost of living had become at least somewhat harder over the previous two years. Among households earning less than $25,000, 38% said keeping up was nearly impossible.

Financial Pressure Is Affecting Healthcare

The survey also examined how financial pressure was affecting mental health and healthcare decisions. Forty-five per cent of respondents said financial stress affected their mental health on a daily or regular basis. Among households earning less than $25,000, the combined share reporting daily struggles or regular anxiety over money reached 51%.

Healthcare decisions were also affected. Fifty-seven per cent of respondents said they had taken at least one cost-driven healthcare action during the previous year. Twenty-eight per cent said they had delayed or avoided a doctor's visit to save money, while 17% had skipped filling a prescription because of the cost. Other respondents reported asking doctors for cheaper medication, choosing lower-cost insurance with worse coverage or going without health insurance.

More Than Half Say They Cannot Get Ahead

The survey found that 55% of US consumers described their ability to get ahead as either completely impossible or as treading water. Twenty-seven per cent said getting ahead felt completely impossible and they were trying not to fall further behind, while another 28% said they were surviving without making real progress. Only 7% said they were in a better position than two years earlier.

The findings do not establish that rising costs were the sole reason respondents changed their plans. They do show that, among the Gen Z respondents surveyed, cost pressures were associated with changes to major milestones involving housing, education, family, marriage, and starting a business.

The survey was conducted among 1,000 US adults, with responses analysed by demographic groups including age, gender, household income, and education. The generational categories were Gen Z, ages 18–29; Millennials, ages 30–45; Gen X, ages 46–61; and Baby Boomers, aged 62 and older.