A new study from Bank of America researchers finds that Gen Z will become the richest generation alive. The reason could surprise you.
Gen Z is about to become the richest generation alive, according to new research by the Bank of America Institute.
"Between significant wealth and increased spending levels over the next 10 years, the consumption patterns of Gen Z will have a strong influence on the global economy," the BofA Global Research team said. "In roughly the next five years, they will have globally amassed $36 trillion in income and that figure is expected to surge to $74 trillion by around 2040."
In 2023, Gen Z's income sat around $9 trillion, researchers said.
So, where are Gen Zers (born from the mid to late 1990s to the early 2010s) getting all this money?
Get top local stories in Philly delivered to you every morning. Sign up for NBC Philadelphia's News Headlines newsletter.
"BofA Global Research has noted that a huge transfer of wealth is expected as Baby Boomers pass down assets to younger generations, meaning that Gen Z and Millennials are increasingly likely to be making key spending and saving decisions."
Despite all that generational wealth coming their way, nearly a third of Gen Z "feel they are behind where their parents were at the same age," BofA research said.
They are also spending more on "discretionary items like travel and entertainment" than they're saving, compared to other generations. Gen Z is spending well above average on child care, but less on insurance.
Business
"Using Bank of America internal deposit account data, we find that Gen Z, on average, does not have enough in balances to cover a month of spending," researchers said.
The same study found that about two-thirds of Gen Z have cut back on spending and going out with friends in the short term. It also found that Gen Z is struggling to find work in "an increasingly difficult labor market."
Sign up for our Breaking newsletter to get the most urgent news stories in your inbox.
