Gen Z is shopping less and eating at home more as the woes of inflation set in, BofA survey finds

• Gen Z is cutting back on their spending for the next year, a study reveals.
• The young adults are eating out and shopping less, citing high living costs.

The youngest adults are changing up their spending habits to accommodate how costly it is to be a grownup in 2023.

Bank of America surveyed 1,167 Gen Zers between the ages of 18 and 26 in August for its 2023 Better Money Habits study, and 73% of respondents said they're finding ways to cut back on spending.

About 53% of Gen Z cite a high cost of living as a barrier to their financial success. In August, inflation was up by 3.7% compared to last year's figures during the same time, according to the US Bureau of Labor Statistics.

As a result, nearly half of the youngsters surveyed said they are cutting back on eating out and opting to cook at home instead. A third of them are only picking up essentials at the grocery store, and most of them plan to keep these restrictive changes for the next 12 months.

Fast food isn't the cheap, convenient option it used to be for singletons looking for a quick bite. Restaurant chains are hiking up their prices more and more, and grocery items are also getting costlier.

The holidays are approaching, and it's unclear if Gen Z will stick to their financial saving plans. The young shoppers were the star spenders of the holiday season in 2022, despite fears of debt and thinning budgets.

Over half of them told Bank of America they don't have enough in their savings to cover three months of expenses, and less than 48% said they're fully or mostly financially independent.