Gen Z’s struggle for financial independence
Financial independence has long been regarded as an early marker of adulthood. Get a job, get a place, and get control of your money. Yet, today, that change is proving more difficult than it looks on paper.
A new study from Intuit credit karma found that despite many young Americans (ages 18-24) receiving financial help from family, more than half (51%) say they are making too many sacrifices just to make ends meet. It highlights how economic realities and financial knowledge gaps are reshaping today’s financial freedom.
Key Findings: How Young Adults Are Using Money Today
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More than half of Americans aged 18-24 (51%) are still getting financial support from parents or relativesStaying home (49%) and getting money when needed (46%) are the most common forms of support.
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Despite family support, 61% of young adults say they still have to make significant financial compromisesWhether that means struggling to cover unexpected expenses or making deliberate compromises to afford lifestyle experiences.
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Nearly a third (31%) of young people do not feel prepared to manage their personal finances, Saving for long-term goals involves understanding interest rates among the biggest knowledge gaps.
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More than half (56%) take up odd jobs or side jobs to cover unnecessary expensesWhich reflects the financial trade-offs young adults are making to maintain their lifestyle.
Why do young Americans depend on their parents for financial support?
Half of young adults (51%) are currently receiving some form of financial support from parents or relatives. The most common types of support include living with parents/relatives at home or in a family-owned property (49%), receiving money when needed (46%), having health insurance or covering medical expenses (38%), and having parents or relatives pay some or all of the monthly bills such as cell phone, gas, food or utilities (36%).
It is not a single safety net, but several layers on top of each other.
The reasons behind support vary, some of which reflect financial needs, while others come from supportive family dynamics.
Four in 10 (40%) say they are unable to fully support themselves financially, while another 40% say their family wants them to focus on school or career development. Other reasons include:
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38% are financially capable and willing to help.
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34% want to help them save money for the future.
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28% want help managing the high cost of living.
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18% are concerned about the job market for people their age.
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17% say it is expected culturally or personally in their family.
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14% say they feel an obligation to support their siblings.
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14% want help paying off student loans.
Specifically, most young adults receiving assistance do not have a specific timeline for financial independence. Only 12% say there is a clear timeline, while 46% say there are expectations but no specific timeframe, and 17% say support is open.
Parents who provide financial support largely understand the economic reality their children face:
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62% of young adults say their parents/relatives think it is difficult for people their age to be financially independent today.
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53% say their parents/relatives believe their generation is at a financial disadvantage compared to previous generations.
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54% say that their parents/relatives believe that it is important to help them financially given today’s economic circumstances.
Support does not mean stability
Even with family support in the picture, the financial compromise doesn’t disappear. Of young adults who receive support, 61% say they still have to make significant compromises.
Some of this is driven by financial stress. Overall, 44% of young adults say their financial agreements do not prepare them to cover unexpected expenses such as car repairs or medical bills.
In other cases, it’s a deliberate compromise: 40% of young adults who live at home with parents/relatives say they do so specifically to save money for lifestyle experiences like dining out, traveling, and attending festivals.
Nearly half (47%) of young adults say they are making financial compromises to enjoy life now rather than for long-term financial security.
In fact, 36% are actively avoiding or delaying debt repayment to fund lifestyle experiences, and nearly one-third (34%) are taking on credit card debt to do so.
More than half (56%) say they take gig work or side jobs to cover non-essential expenses.
Young adults are making active — sometimes costly — choices about how to live within constraints that feel increasingly tight, whether driven by the economy, their own financial habits, or both.
Young adults face real deficiencies in financial literacy
Nearly a third of young adults (31%) say they don’t feel prepared to manage their personal finances, and the shortcomings they identify are fundamental:
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48% of people feel less able to save for long-term goals (e.g., home, major purchases).
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42% don’t understand how to invest or grow their money.
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41% don’t understand the interest rates and fees on credit cards or loans.
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36% feel unprepared to manage bills and recurring payments.
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34% of people feel unprepared to manage day-to-day cash flow (having enough money between paychecks).
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28% don’t feel prepared to manage or pay off debt.
For many people, the response is to avoid. More than half (53%) of young adults say they avoid thinking about or managing their finances because it feels overwhelming.
That avoidance has real consequences:
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22% say they could cover essential expenses for less than a month if they lost their main source of income.
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Roughly 1 in 7 (15%) say they currently can’t afford essential expenses.
learning the hard way
Financial vulnerability is shaped by the economy as well as by gaps in knowledge and action.
More than 4 in 10 (43%) say they have made financial decisions without fully understanding the implications, and nearly half (48%) say they know what they should do but don’t take action.
Those gaps eventually have a way of making themselves known. Nearly half (47%) said their biggest financial awakening is realizing how expensive everyday essentials are.
Other wake-up calls include:
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41% have tried to save and realized how difficult it is.
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34% had to pay rent or bills themselves.
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30% faced unexpected expenses such as medical bills or car repairs.
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Subscriptions and recurring fees add up to 21% of views.
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19% of people got into credit card debt and faced interest charges.
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19% realized they had no credit score or credit history.
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14% were refused a credit card or loan.
Those lessons often come with real financial costs. Nearly half (46%) say a lack of financial knowledge has already cost them money in fees, interest or missed opportunities.
Reality check of salary
For many young adults, the first paycheck is a big financial alert. While an offer letter may show the annual salary, it is not what comes into your bank account after taxes and deductions.
The gap between expected and actual take-home pay One in five (22%) young adults say their biggest financial warning was how much taxes would reduce their pay – and it’s not hard to see why.
Only 26% say they clearly understand how much they will take home after taxes. In fact, 1 in 5 (20%) do not currently have a job.
feeling pressure
Whether it’s financial pressures, lifestyle choices or limited financial knowledge, young adults are feeling stressed.
Roughly half (51%) say they feel like they are sacrificing too much financially just to get by.
“Young adults today face a financial landscape that is more complex in many ways than that of previous generations,” said Courtney Alew, consumer financial advocate for Intuit Credit Karma. “But what it comes down to is that the barriers aren’t just economic. Sometimes the barrier is a real knowledge gap, like not knowing how taxes affect your paycheck, how interest compounds, or how to start investing. Other times, it’s a conscious choice to live in the present instead of planning for the future. If you’re in either camp, the most important thing you can do is start somewhere. Be clear on your actual take-home pay, one in line with your actual life. “Budget, and don’t let the burden keep you down. Awareness is the first step when it comes to your finances, whether that means building knowledge or turning what you already know into action.”
modus operandi:
The survey was conducted online by Qualtrics on behalf of Intuit Credit Karma in the United States from March 31, 2026, to April 2, 2026, among 1,011 adults aged 18-24.
this story was produced by credit karma Reviewed and distributed by and stacker.