50% of Consumers Struggle With Daily Costs as Generations Take Different Paths

Americans across age groups are feeling the same economic squeeze, but the way they respond is starting to reveal a sharper generational divide.

The PYMNTS Intelligence report, “Economic Pressures Split the Generations as Each Rethinks the Basics,” finds that financial strain is now broad enough to touch nearly every cohort, even as the pressure points differ by age. The report is based on a survey of 2,368 U.S. consumers.

Overall, half of consumers say they are struggling to keep up with daily living expenses. That figure is striking partly because it barely changes from one generation to the next. What does change is the kind of strain people feel most.

Older consumers are more likely to feel the pain in groceries, utilities and healthcare. Younger consumers are more likely to be dealing with debt, unstable income and transportation costs.

50% of all consumers say daily living expenses are a financial challenge, with the share holding roughly steady across generations.

84% of consumers already struggling with daily expenses say groceries and household essentials are the main problem, which means 42% of all Americans are having trouble affording groceries. Among baby boomers and seniors, that rises to 46%.

21% of consumers have borrowed money from friends or family to cope with rising costs, but that climbs to about 1 in 3 among zillennials and Gen Z. At the same time, 47% of millennials and 48% of zillennials say their coping moves have been very or extremely effective, versus 19% of boomers and seniors.

What stands out beyond the headline findings is how practical these generational responses have become. Baby boomers and seniors appear to be relying on discipline. Seven in 10 are cutting back spending, the highest share of any age group.

That suggests many older consumers are responding by tightening household budgets and focusing on essentials first. Younger adults are taking a different route. Gen Z and zillennials are much more likely to lean on family support, and Gen Z is also the cohort most likely to report trouble with debt, rising credit card bills, work and income stability, and transportation costs. For younger consumers, the challenge is not just paying more. It is managing more moving parts at once.

There is also a more constructive reading in the data. Even with costs still high, consumers are not standing still. They are adjusting, cutting back, postponing purchases and looking for help where they can find it. Younger groups, in particular, report stronger success in making those adjustments work.

Nearly half of millennials and zillennials say the actions they have taken are highly effective. That does not erase the stress. But it does suggest that adaptation is underway. People are learning how to respond to a harder financial environment, even if the tools vary by age, income and stage of life. They are adapting.