New Bank of America survey finds young adults are more candid about salary and money than previous generations.
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Among members of the older generations, candid talk about finances, and particularly about salary, is often considered taboo, or at least impolite. But a new survey from Bank of America suggests that amid rising inflation, economic uncertainty, a tough job market and a culture that promotes social sharing, Gen Z adults are far more transparent with friends about what they earn, what they can afford, and the financial stresses they face.
In the survey, 27% of Gen Z adults (aged 18 to 29) reported they talk specifically about their salary or income with friends, compared to 20% of millennials, 12% of Gen X, and just 3% of baby boomers. “That’s a big number,” said Holly O’Neill, president of consumer, retail and preferred at Bank of America. “I can definitely say I’m Gen X and I did not do that when I was their age.” But Gen Z, she adds, is a “generation that often puts dialogue out in the open marketplace.”
Overall, 60% of the Gen Zers reported having some money conversations with friends, as did 62% of millennials, while only 46% of Gen Xers and 29% of baby boomers said they talked money with friends.
Bank of America’s new report, “Gen Z and the Cost of Adulting,” is based on a survey conducted in February of more than 2,000 adults, with the sample weighted heavily to the 29 and under crowd.
O’Neill emphasized that Gen Z’s openness reflects a cultural shift, as well as an economic reality. As wages struggle to keep pace with the cost of living, and as financial anxiety grows for young professionals who struggle to find work, Gen Z is increasingly treating money conversations less of a private matter and more of a tool for surviving and navigating today’s economic climate. She suggests that these conversations, if they become more common in the workplace, could lead to fairer pay and equity.
While companies may not appreciate workers sharing pay information, a survey last year by human resource services company BambooHR, suggests it could be good for employee morale. In that survey, 54% of workers said their companies discourage salary talk among coworkers, but 44% also said that salary transparency builds trust in a company,
While early financial struggles is something that most generations face when starting their career, O’Neill said the difference with Gen Z is that they are also turning these financial challenges into something positive. According to Bank of America data, when Gen Z is stressed about money 69% check their bank account balance, 54% make or revise a budget, 49% save or invest, and 42% seek financial advice or resources.
“Certainly, Gen Z is telling us that it’s a challenging time to be a young adult,” said O’Neill. “But they’re channeling that stress into positive actions.”
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