Affordability Rewrites the Household Balance Sheet

Rising prices are reshaping not just household budgets but the financial relationship between generations.

Younger and older consumers in the United States are responding to the same pressures in different ways, according to the November edition of PYMNTS Intelligence’s Generational Pulse Report, “Economic Pressures Split the Generations as Each Rethinks the Basics.”

The report, based on a September survey of 2,368 U.S. adults, found that inflation driven by tariffs, housing costs and utilities is straining consumers across income levels and age groups. Half of all consumers said they are struggling to keep up with daily living expenses, forcing trade-offs that range from cutting discretionary spending to leaning on family for financial help.

These pressures are playing out differently for Generation Z, millennials, Generation X and baby boomers.

No generation is insulated from rising costs, the report revealed. Roughly 1 in 2 consumers in every age cohort reported difficulty covering basic expenses. Yet the nature of these difficulties varies. Many older Americans on fixed incomes are more likely to be squeezed by the rising cost of essentials such as groceries and utilities, while younger adults are juggling unstable income, transportation costs and mounting credit card balances.

The differences are shaping spending behavior, saving habits and reliance on informal support networks.

Three data points illustrate how inflation is widening generational gaps in financial coping strategies:

• Half of U.S. consumers said they are struggling to afford daily living expenses, a figure that holds steady across age groups, underscoring that inflation is a universal stressor rather than one confined to a single generation.
• Among consumers who struggle with daily expenses, 84% cited groceries and household essentials as their main challenge, reflecting the effect of tariffs and demand shocks. This translates to 42% of all Americans having difficulty affording food, with baby boomers the most acutely affected at 46%.
• To manage rising costs, 21% of consumers have borrowed money from friends or family. That share jumps to about 1 in 3 among Gen Z and zillennials, reflecting greater reliance on intergenerational financial support among young adults.

Beyond these headline figures, the data highlighted how inflation is reshaping long-term financial behavior. Young consumers appear to be prioritizing short-term survival over future planning. Nearly half of Gen Z respondents said they are avoiding large purchases or investments, compared with 40% who have managed to increase savings. That suggests rising prices are not only constraining current spending but also delaying wealth-building milestones such as homeownership or long-term investing.

Older generations, by contrast, are more likely to respond by cutting back. While half of zillennials reported reducing spending to cope with higher costs, 70% of baby boomers said the same. Yet those cuts do not always translate into relief. Only 19% of boomers and seniors say the steps they have taken have been very or extremely effective, versus nearly half of millennials and zillennials.

Income further compounds these divides. About half of consumers earning more than $150,000 annually reported success in managing financial pressures, compared with just 23% of those earning less than $50,000. Access to credit and financial advice appears to play a role, giving higher earners more flexibility to adjust.

Taken together, the findings point to an economy in which inflation is not only straining wallets but also redefining how generations support themselves and each other. For banks, FinTechs and payment providers, products designed to help consumers smooth cash flow, manage essentials and navigate short-term shocks may resonate differently depending on age, income and family ties.

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