The news: A new MoneyLion survey of 1,000 US adults found that 52% need more money this summer than they did last year due to rising costs, with younger adults feeling the financial pressure more acutely. One-third of Gen Z respondents need "significantly more" money to get through the summer, compared to 23% of millennials, 20% of Gen Xers, and 15% of baby boomers.

As a result, many young adults are making lifestyle adjustments and seeking additional income streams. Financial stress is increasingly shaping Gen Z’s housing options, work habits, and spending decisions.

Zoom in: The survey findings illustrate how Gen Z is adapting to tighter finances:

• 33% of Gen Zers report a significant financial shortfall this summer versus 23% of millennials, 20% of Gen Xers, and 15% of boomers.
• 23% of 18- to 24-year-olds are moving back in with family or taking on roommates to reduce housing costs.
• 62% of Gen Zers plan to earn supplemental income this summer compared with 52% of millennials and 39% of all respondents.
• 35% of Gen Zers would work 60 or more hours per week to earn extra income compared with 25% of millennials.

Implications for banks: These findings highlight growing demand for products and services that help younger consumers manage cash flow and build financial resilience.

• Products that accelerate savings: As more Gen Zers seek supplemental income and struggle with rising expenses, they have greater interest in budgeting tools, high-yield savings accounts, early-paycheck access, small-dollar credit products, and emergency savings solutions.
• Personalized insights: Banks that pair products with personalized financial guidance, digital budgeting tools, and savings recommendations are better positioned to attract and retain younger customers.
• Responsible credit options: Credit-builder and secured cards, cash-back rewards on everyday spending, and debit cards with automated savings resonate with Gen Z as they navigate rising costs. In addition, small-dollar emergency loans, credit-builder loans, and student loan refinancing products address immediate financial pressures without encouraging excessive borrowing. 

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