Despite a strong reliance on parents at this life stage, Gen Z has an optimistic outlook on long-term financial prospects.
SIOUX FALLS, S.D., November 13, 2025–(BUSINESS WIRE)–Pathward®, N.A., a national bank focused on financial access, today announced the results of research it conducted in partnership with Mastercard on financial attitudes and behaviors of Gen Z. The report, “From Safety Net to Solo: A Data-Driven Look at Gen Z’s Financial Journey,” illustrates the steps in their migration to financial independence. This generation faces high costs as they navigate their early financial lives but are largely optimistic about their financial future.
According to the survey, only 37% of Gen Z reports being mostly or completely independent from their parents with 63% of 23 and 24 year olds relying on their parents for some portion of their expenses. Many rely on their parents to cover monthly expenses, which is likely a result of many Gen Zers transitioning to full-time employment and navigating today’s high cost of essentials like groceries, rent and gas. Even as they transition away from the financial support of their parents, many respondents indicated that they take a conservative or moderate approach to risk tolerance with their finances.
Despite the somewhat slow transition to financial independence and a generally cautious approach to risk, Gen Z has an optimistic outlook on their long-term financial prospects. Regardless of whether they are in high school, college, post-college or pursuing an alternative to college, more than half (55%) indicated the belief that they are extremely or very likely to reach their financial goals. Conversely, 9% believe they are not likely to achieve their financial goals.
“Gen Z knows where they want to go financially, and many members of this generation are optimistic that they can get there,” said Pathward President Anthony Sharett. “Understanding Gen Z’s outlook on the future and their financial priorities is essential for financial institutions looking to create solutions that align with their needs today and tomorrow.”
Gen Z Takes a Diversified Approach to Financial Tools
Even as a plethora of payment tools have been introduced to consumers, Gen Z primarily uses more traditional payment methods like debit cards (34%) and cash and checks (25%). Looking a bit closer at different cohorts within Gen Z, however, there is a clear migration to credit and digital payments (digital wallets, payment apps) that correlates with increases in age and education. While the older, more educated cohorts are not abandoning traditional payment tools, they are capitalizing on all the benefits that today’s payment options offer.