Bloomberg writes, citing a study by the Bank of America Institute, that young Americans in the United States are in a financially vulnerable position: Their savings are not enough for even a month of usual expenses.
According to an analysis of bank accounts and card transactions, the average member of the baby boomer generation (i.e., people born after 1995) spent twice as much as they had in savings in February 2025. This gap between income and spending has widened significantly over the past two years. It is higher than for all other age groups.
This is partly because consumers in the buzzer generation, many of whom still hold entry-level jobs and earn less than their older peers, tend to spend most of their income on basic necessities, including rent and utilities.
At the same time, their spending on entertainment, travel, and other nonessential categories increased by 25% year-on-year, significantly outpacing overall consumption growth.
Bloomberg notes that generations’ financial sentiment is deteriorating, especially amid high inflation, expensive loans, and the exhaustion of savings generated during the pandemic.
According to the University of Michigan, Americans’ optimism about their financial future has reached a historic low.
Economists and analysts are watching how this growing anxiety will affect consumption, the main driver of the US economy. Already, some retailers are warning of a decline in demand, and data shows that Americans have begun to spend more cautiously.
Bank of America also indicates a deterioration in the labor market for young people.
Over the past year, the number of households in the buzzer generation receiving unemployment benefits has increased by almost a third, the highest rate of any age group. In addition, growing hidden unemployment may affect the career prospects of young professionals.