Gen Z Accounts for Largest Increase in Paycheck-to-Paycheck Consumers

Generation Z saw the sharpest increase in the number of people living paycheck to paycheck over the past two years.

The share of Gen Z consumers living paycheck to paycheck leapt from 57% in January 2023 to 69% in January 2025, according to the PYMNTS Intelligence report, “How Do Consumers Weigh Convenience Services Against Financial Pressure? It’s About Buying Time.”

The report found that the increase put the share of Gen Z consumers living in that status higher than that of the population as a whole. Over that same two-year period, the share of all consumers in the U.S. who were living paycheck to paycheck rose from 60% to 66%.

Earlier PYMNTS Intelligence reports have identified other ways in which Gen Z consumers differ from those of other generations.

PYMNTS CEO Karen Webster noted in a recent column that younger consumers, including both Gen Z and millennials, are more likely than other generations to be living paycheck to paycheck by choice.

Overall, 25% of American consumers live paycheck to paycheck predominantly by choice, Webster noted, citing PYMNTS Intelligence research. These consumers cite family support obligations, debt payments and higher spending on discretionary items for living paycheck to paycheck by choice.

Gen Z is the cohort most likely to cite splurging on nonessentials as a financial stressor, according to the PYMNTS Intelligence report, “New Reality Check: The Paycheck-to-Paycheck Report: Why Gen Z Consumers Struggle to Achieve Financial Independence.”

The report found that 34% of Gen Z consumers cite splurging as a reason they live paycheck to paycheck, and 19% cite it as the top reason.

Gen Z consumers are also distinct from other age cohorts in another way: savings. The report found that despite their higher rate of discretionary spending, Gen Z consumers save a slightly higher portion of their income — 9.8% — than other groups.

These distinct characteristics of Gen Z consumers will be of interest to businesses because, as Webster said in another column, they are courting the members of this generation as their future workers, customers, business partners and investors.

By 2030, Gen Z will represent a third of the workforce and will see their disposable income increase by sevenfold.

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