Younger Consumers Juggle More Ways to Pay the Bills

Consumers are not just cutting back. Many, especially younger adults, are layering one money move on top of another to keep up with everyday costs.

That is the clearest signal from “Generations Under Pressure: How Younger Consumers Are Coping With Higher Living Costs,” a recent installment of the PYMNTS Intelligence Generational Pulse Report series. Based on a survey of 2,747 U.S. adult consumers conducted from Jan. 2 to Jan. 5, the report examines how persistent pressure across groceries, housing, healthcare and other essentials is shaping the way different generations manage their cash flow. The findings show that financial stress remains broad, but younger consumers are using more coping strategies at the same time.

The story is not only that prices remain high. It is that traditional ways of coping are losing some of their power. Half of consumers rely on two or three strategies to manage rising living costs. Only 16% use four or more. Yet younger consumers are more likely to stack several approaches at once, including spending cuts, extra work, borrowed money, pay later plans and changes to savings.

The data shows how different the coping mix has become:

23% of bridge millennials use four or more coping strategies, the highest share among generations. Millennials follow at 22%, while Gen Z is close behind at 21%.

69% of all consumers have cut back on everyday spending. That remains the most common response across generations, including 75% of baby boomers and seniors and 60% of Gen Z consumers.

38% of Gen Z consumers have borrowed money from family or friends, compared with 22% of the full sample. Gen Z also reported the highest use of pay later options, at 25%.

The generational divide is important. Older consumers tend to rely on restraint. They cut everyday expenses and delay major purchases, but they are less likely to add income sources, use credit or seek outside financial help. One-quarter of baby boomers and seniors have taken no coping action, and only 8% use four or more strategies.

Younger consumers are doing more because they often have to. Bridge millennials, millennials and Gen Z consumers are more likely to take on additional work, negotiate bills, borrow from family or friends and use installment plans. The report frames this not as a sign of financial comfort, but as evidence that no single lever is enough. High strategy use reflects limited slack, not necessarily confidence.

That confidence is slipping. The share of consumers who say their coping strategies are extremely or very effective fell to 25% in January from 34% in October. Even among consumers using four or more strategies, perceived effectiveness dropped to 21% from 36%. Millennials saw one of the sharpest declines, falling to 32% from 47%.

That creates a more constructive opening for banks, payments firms and credit providers.

Consumers may not need more ways to stretch themselves. They need tools that make the strategies they already use less stressful and easier to manage. Real-time spending visibility, flexible payment timing, smarter installment options and clearer views of recurring bills could help restore a sense of control as higher living costs continue to pressure household budgets.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.