Gen Z is saving more money than any other generation, according to a recent poll conducted by Talker Research. The survey, which took place between January 15 and January 20, asked 1,000 Americans how much of their paycheck they save each month. The results show that 29 percent of respondents save between 1 and 10 percent of their monthly income, while an equal proportion do not save anything at all.
When analyzed by age group, Generation Z (people born between 1997 and 2012) emerged as the leading savers, with 21 percent saving between 1 and 10 percent of their income and 25 percent saving between 11 and 20 percent. Impressively, 12 percent of Gen Z manage to save around 21 to 30 percent of their monthly wage, and 5 percent save their entire salary. Millennials (born between 1981 and 1996) also show strong saving habits, with 30 percent saving up to 10 percent of their paycheck, and 24 percent saving between 11 and 20 percent.
However, 26 percent of millennials do not save any money each month. Older generations appear to be less consistent in their savings behavior. None of the survey respondents from the Silent Generation (born between 1928 and 1945) reported saving money.
Similarly, 32 percent of Baby Boomers (born between 1946 and 1964) and 33 percent of Generation X (born between 1965 and 1980) do not save any money. Julie Beckham, assistant vice president and financial education officer at Rockland Trust, explained the factors driving Gen Z’s financial prudence.
Gen Z’s unique financial challenges
“Gen Z’s approach to saving differs from older generations because they’re heading toward significant milestones,” Beckham said. “Typically, Gen Z is also more cautious about taking on financial risks because they’ve seen the impact of student loans on older generations. They understand the weight of debt too, which may be fueling their desire to save for financial milestones and their future.”
Despite their savings, Gen Z remains the least likely to own homes.
The share of Gen Z buyers and sellers aged 18 to 24 made up just 3 percent of buyers and 2 percent of sellers, according to recent data. The Generation Z entry-level income is reported to be around $45,000, the lowest among all generations. This financial challenge, coupled with the high cost of homeownership relative to income, has inhibited many from becoming homeowners.
In the 200 largest metro areas, Gen Z buyers allocate 37 percent of their income toward their mortgage, while the average buyer spends only 26 percent. This financial strain is compounded by a tough job market and economy, with 5.3 percent of U.S. workers juggling multiple jobs, the highest rate since 2019. As the real estate market remains challenging—with high interest rates, low housing inventory, and rising home prices—Gen Z is exploring alternatives like co-owning homes with friends, house hacking, and relocating to more affordable cities to achieve homeownership.
Nearly half of Gen Z ranks housing as their most stressful expense, with 23 percent feeling unable to plan their future due to financial uncertainty. However, with a focus on innovative and flexible approaches, many still hope to realize their homeownership dreams.