For community bank marketers, Gen Z may be the most misunderstood generation in the marketplace. The conventional picture is easy to draw: young, financially stretched, burdened by high housing costs and student debt, living in Mom and Dad’s basement, eating fast food, spending hours on their Instagram feed and video games. But the latest research paints a considerably more complicated and potentially more attractive picture for community bank marketers.
Gen Z and money
This generation is saving money. It is spending money. And increasingly, it is making its own financial decisions. That makes this generation an important target for community banks; not simply because of what Gen Z has in its bank account today, but because of the financial relationships it is establishing for the decades ahead.
Consider the findings of Bank of America’s 2026 Better Money Habits study. Two-thirds of Gen Z say they are currently saving, while 22% contribute to a 401(k), 21% put a set percentage of their paycheck into savings each month, and 22% use a high-yield savings account. Just 34% now report receiving financial assistance from parents or other family members, down from 46% in 2024. Among older Gen Z ages 26 to 29, that figure falls to just 18%.
In other words, their financial independence is real. But where is the money coming from?
Gen Z is working
The Bureau of Labor Statistics reports that full-time workers ages 16 to 24 earned median weekly wages of $805 for men and $725 for women in 2025. Those numbers are obviously below the earnings of older workers, but they represent meaningful income for a generation that is side-stepping traditional financial obligations. And there is another important factor.
Gen Z is entering adulthood later
The Census Bureau reports that 58% of Americans ages 18 to 24 lived in their parents' home in 2025. Among adults ages 25 to 34, the figure was 16%. Pew Research likewise found that 64% of young adults living with a parent say the arrangement has had a positive impact on their personal finances. That does not mean Gen Z is necessarily receiving a free ride. In fact, Pew found that 65% of young adults who live with their parents contribute to household expenses, while 46% contribute toward rent or a mortgage. But delaying independent housing can leave more money available for other priorities.
The same phenomenon applies to family formation. Young Americans are marrying and having children later than previous generations. Pew found that only 29% of adults ages 25 to 29 were married in 2023, compared with 50% at the same age in 1993. Among adults ages 30 to 34, just 27% had a child living in their household in 2023, compared with 60% three decades earlier.
That matters financially. Raising children is one of the largest expenses a household can assume (the average cost to raise a child from birth through age 18 in the United States is estimated to be between $303,418 to $320,000), while marriage and homeownership often accompany other significant financial commitments. Gen Z is postponing, or in some cases reconsidering, those commitments, leaving more room in the budget for experiences, discretionary purchases, savings, and personal goals.
Gen Z is spending differently
Bank of America research finds that Gen Z discretionary spending has been particularly resilient, with spending strengthening in categories such as travel, beauty, jewelry, and coffee. The bank's economic research also points to gig work as an increasingly important source of income, with nearly 40% of Gen Z gig work in its account data coming from social-commerce platforms. Travel is another indicator. The study identifies young Americans as among the biggest drivers of travel demand. So, yes, Gen Z appears to have money for travel, entertainment, dining and discretionary purchases. But that does not mean Gen Z is financially comfortable.
Gen Z is also struggling
According to the Bank of America study, 42% of Gen Z live paycheck to paycheck, while 49% identify the high cost of living as a major barrier to financial success. This apparent contradiction is precisely why community banks should pay attention.
Gen Z isn't necessarily a generation with more money. It is a generation with a different relationship to money. It is delaying some traditional financial obligations while actively pursuing others. It is saving, working side hustles, spending on experiences, and increasingly taking responsibility for its own financial future. For community banks, that creates…
An opportunity that goes well beyond a checking account
Gen Z needs help building credit, establishing emergency savings, financing a first car, managing a side business, investing, preparing for homeownership and eventually navigating marriage, children, and other major financial decisions. And unlike generations that may have already established deep relationships with national banks, Gen Z's primary financial relationships are still being formed.
Therein lies the opportunity. Community banks have long competed on something the largest financial institutions struggle to replicate: relationships. Gen Z may be digitally native, but that doesn't mean it doesn't value guidance. In fact, Bank of America found that 81% of Gen Z consider being perceived as financially responsible important, while 60% say they talk with friends about money. The community bank that sees Gen Z merely as young people with small balances may miss the point. The smarter banks will see them as customers at the beginning of their financial journey. And that may make Gen Z one of the most valuable audiences a community bank can begin building relationships with today.
Bank Marketing Center
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Our platform automates many of the day-to-day tasks involved in bank marketing. From professionally designed bank marketing templates and content creation to social media and digital asset management, compliance workflows, and more, we provide community bank marketers with the tools they need to do more with their time and resources.
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Want to learn more about how we can support your community bank and its marketing efforts? Visit bankmarketingcenter.com to see what we can do for you. You’re also welcome to contact me directly at 678-528-6688 or email me at nreynolds@bankmarketingcenter.com. As always, I look forward to hearing your thoughts.