62% Of Gen Z Have Zero Emergency Savings

A survey by Credit One Bank reveals  that while older generations have had time to build emergency savings, younger adults, particularly Gen Z, are facing a widening savings gap. The study found that 62% of Gen Z have no emergency funds at all, nearly double the rate of baby boomers. When faced with a $500 unexpected expense, 51% of consumers overall said they would use a credit card, with that number rising to 60% among those under 35 and 70% for students. Generational differences are stark – 65% of baby boomers have cash on hand for emergencies, compared to just 38% of Gen Z. Across all age groups, two-thirds have six months or less in savings, falling short of recommended targets. Credit reliance is more pronounced in larger emergencies, with one in four Gen Z and millennials saying they would max out their credit cards. Women are also more likely than men to turn to credit cards in a crisis. (StudyFinds)