Nearly Half Of Gen Z Lives With Their Parents To Save Money — Here's How They're Cutting Costs Everywhere Else

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Almost 50% of Gen Z lives with their parents to save money, according to an Affirm (NASDAQ:AFRM) survey, which was done by Talker Research. Multifamily homes are becoming more normalized, and staying at home is just one of the many ways Gen Z is cutting costs.

Gen Z Is Turning To Side Gigs For Extra Cash

Almost 40% of Gen Z earns extra income through side gigs and freelance opportunities, based on the Affirm survey. With more than half of Gen Z living at home to save money, it makes sense that they are looking for multiple ways to boost their earnings.

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However, Gen Z would much rather deliver a DoorDash (NASDAQ:DASH) order than spend the extra money to have food delivered to them. While 45% of Gen Z mostly cooks at home, only 9% of them often order takeout.

Side hustles may continue to gain momentum, based on 64% of Gen Z thinking about their financial future regularly. A higher income is a big piece toward long-term money goals, and side hustles turn extra time into additional cash.

Experiences Are One Of The Few Exceptions

Gen Z is pretty focused when it comes to money, but there is one exception that may cause them to spend a little extra. Only 26% of Gen Z said that they stick to a strict budget for vacations, Affirm said. The same survey found that 43% of Gen Z strikes a balance between splurging and saving when it comes to travel.

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Vacations are an experience-based purchase. While the pandemic was a few years ago, Gen Z still seems committed to catching up on missed experiences. They're pretty stringent on almost every other expense, with almost half of Gen Z relying on free or low-cost workouts for their fitness, according to Affirm.

Thrifting is also common among Gen Z, with 58% of them mixing new clothing with secondhand items. More companies may shift to offering experiences over stuff to capitalize on this trend.

Gen Z Isn't Reckless With Their Money

The Affirm survey's findings point to a financially conscious generation instead of people who spend impulsively. Almost half of Gen Z steers clear of credit cards and feel more confident when using a debit card. They actively set guardrails that minimize how much they spend, with 37% of them having budgets.

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Credit card usage is mixed, with an equal amount of Gen Z describing these financial products as "risky" and "helpful," based on the survey. Gen Z has embraced frugality and buys with intention instead of purchasing things just for the sake of it.

"It's time to retire the Gen Z caricature," Affirm (NASDAQ:AFRM) Senior Vice President of Product Vishal Kapoor said when summarizing the results. "Gen Z isn't reckless or disengaged with their finances — they're intentional about how, when and why they spend. They value flexibility and transparency, using products that help them stay in control and make smart, informed choices that fit their lives. Pragmatic and deliberate, they're redefining what financial confidence looks like."

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This article Nearly Half Of Gen Z Lives With Their Parents To Save Money — Here's How They're Cutting Costs Everywhere Else originally appeared on Benzinga.com