Gen Z is stepping up its money game in response to today’s tough economy. A recent study from Bank of America’s Better Money Habits found that 72% of young adults have made smart changes to improve their financial health. Even though high inflation and rising costs make it harder to get ahead, many Gen Zers are saving more, paying off debt, and spending less on non-essentials like dining out. Over half say the cost of living is their biggest challenge, but instead of giving up, they’re finding ways to manage their money wisely. This shows that even in uncertain times, Gen Z is learning to make thoughtful and responsible financial choices.

As the cost of living continues to rise in the U.S., Gen Z is changing the way they manage money. According to Bank of America’s 2025 Better Money Habits study, 72% of young adults ages 18 to 28 are working to improve their finances. Instead of being reckless spenders, many are saving more and cutting back on unnecessary spending. This includes spending less on things like groceries, eating out, housing, and utilities. More than half say they don’t earn enough to live the way they want, showing how deeply they feel the pressure of today’s economy. These financial challenges are pushing Gen Z to be more mindful and responsible with their money.

As of July 2025, the U.S. Federal Reserve has chosen to keep interest rates unchanged, despite pressure from President Trump and ongoing concerns about high inflation and rocky global trade. This move reflects a tricky situation: while inflation remains above the Fed’s target, signs of a slowing job market and unstable economic policies make future decisions harder to predict. With no clear end in sight, many Americans are becoming more cautious with their money. They're cutting back on non-essential spending, building up savings, and trying to prepare for possible economic challenges later this year. This shows how uncertain financial times can influence everyday choices and household budgets.