Eating out can be expensive due to various factors, including the overhead costs that restaurants incur and the need to cover staff wages, rent, and maintenance.
Tipping, taxes, and menu pricing further increase the bill. Ordering alcoholic beverages, appetisers, desserts, and extras can drive up costs. So, Gen Z is now saving money by eating at home.
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What did the study reveal?
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The youngest adults are altering their spending patterns to reflect how expensive it would be to be an adult in 2023.
In August, Bank of America polled 1,167 Gen Zers between the ages of 18 and 26 for its 2023 Better Money Habits study, and 73% said they’re looking for ways to cut back on spending.
A high cost of living is cited by 53% of Gen Z as a hindrance to financial success. According to the US Bureau of Labour Statistics, inflation was 3.7% higher in August than it was the previous year during the same period.
Why is Gen Z eating at home?
As a result, nearly half of the young people polled claimed they are cutting back on eating out and instead prefer to cook at home. A third of them are only buying necessities at the grocery store, and the majority of them intend to keep these restrictions in place for the next 12 months.
Fast food is no longer the low-cost, convenient alternative it once was for singles looking for a fast bite. Restaurant chains are gradually raising their costs, and supermarket items are becoming more expensive as well.
How are young adults handling savings?
The holidays are approaching, and it’s unclear whether Generation Z will stick to their financial goals. Despite concerns about debt and dwindling resources, youthful shoppers were the top spenders during the holiday season in 2022.
More than half of them told Bank of America they don’t have enough funds to cover three months of costs, and only 48% indicated they’re financially independent.
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