The question went out on social media earlier this month.
"any other millennials or gen z feel torn between adulting and saving money for a future that feels increasingly bleak, and cherishing the moment by splurging on what brings joy in the here and now?" Flirt Cobain tweeted.
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The vast majority of responses were on the downside, with replies such as "100%", "daily" and "every single day."
"What future?" Double A asked.
"Yeah we are a lost generation financially speaking," Joyce Brock replied.
Millennials--defined as those born between 1981 and 1996--may indeed feel less hopeful about their financial future when compared with other age groups..
A report by the financial services company LendingClub found that millennials are most likely to live paycheck to paycheck.
"This is not surprising, as this generation tends to be mid-career, with many supporting growing families," the report said.
Learning to Manage Finances
Seventy-two percent of millennials live with partners or spouses, while 64% of millennials live with children or grandchildren.
In addition, 79% of millennials earn more than 50% of their household’s income, while 20% earn all of their household’s income.
While the rising cost of living makes managing everyday expenses especially difficult for this age group, the report said that millennials have also seen their savings increase again after being flat throughout 2022.
In March 2023, millennials reported an average savings of $11,000, compared with $7,300 a year earlier.
"This suggests that, like other paycheck-to-paycheck consumers, they have learned to manage their finances through multiple recessions and financial crises," the report said.
An increasing number of Gen Z consumers, whose members were born between 1997 and 2012, are living from paycheck to paycheck, offsetting any decrease registered in early 2022.
As of March, 66% of Gen Z lived paycheck to paycheck, up 8 percentage points from a year ago.
Many of these consumers are still establishing their careers, which can mean lower wages.
Gen Z 'Finally Vulnerable'
Also, Gen Z members are young and more apt to be single, so "they may be more likely to spend more on discretionary categories like dining out and entertainment while living paycheck to paycheck," the report said.
But Gen Z members are also more apt to face life-altering events such as a job loss, making them more financially vulnerable.
We promised you good news in the headline and we really do have some: the study said that as of March, the share of adults living paycheck to paycheck fell to 60% from 62% in the previous month.
And the share of baby boomers and seniors living paycheck to paycheck, which saw considerable growth in the first months of 2022, has remained steady since.
Rising inflation continues to bedevil consumers of all ages the LendingClub said.
The March core PCE Price Index rose 4.6% from last year, according to economic data released on April 28, down from the revised 4.7% pace recorded in February but coming in higher than the consensus forecast of 4.5%.
"With inflationary pressures expected to continue well into 2024 consumers of all generations remain tasked with adjusting their financial behaviors to be able to put aside savings and remain creditworthy," LendingClub said.
