Almost 80% of Gen Z and Millennials Use 'Survival Spending'

New Survey from Beyond Finance and Operation HOPE reveals young Americans are focusing on immediate priorities and real-world decisions over long-term financial ideals

45% would use tax refunds for bills or debt, 77% rely on short-term financial strategies like Buy Now Pay Later for essentials, 39% are turning to AI to guide money decisions, and 73% want to know someone's exact financial situation before the third date

CHICAGO and ATLANTA, April 21, 2026 /PRNewswire/ -- Almost 80% of Gen Z and Millennials use 'survival spending' to get by in today's economy with nearly half of Gen Z and Millennials indicating they would use a tax refund to cover bills or pay down debt, 77% relying on short-term financial strategies like Buy Now, Pay Later for essentials, and 39% turning to AI to guide money decisions. As part of its annual Financial Practice Week, Beyond Finance partnered with leading financial literacy nonprofit Operation HOPE to examine how young Americans are actually managing money, finding a clear break from traditional financial practice as they cope with the current economic landscape.

The research challenges the idea that younger generations are abandoning financial responsibility. Instead, it shows a generation actively adapting, making decisions that prioritize immediate needs, flexibility, and informed tradeoffs. While 7 in 10 say wealth-building feels out of reach, their actions tell a more defining story: Financial strategy today is less about getting ahead and more about staying in control. From how they allocate income to how they seek advice — including 73% who want full financial transparency before the third date — Gen Z and Millennials are building financial practices grounded in adaptability, prioritization, and real-world decision-making.

These additional findings follow recent Financial Literacy Month news on the rise of 'survival spending,' and give us a closer look at how Gen Z and Millennials are actually managing money, making tradeoffs, and navigating financial decisions day to day.

A Shift Toward Immediate Financial Priorities

• Tax refunds used for survival, not splurging: 45% would put the money toward bills or debt, and less than 4% would spend it on travel or leisure.
  
  
• 'Survival spending' has become a financial strategy: Nearly 77% report using tactics like Buy Now, Pay Later for essentials, reflecting a shift toward short-term financial management.
  
  
• Side hustles are now part of the baseline financial plan: 71% say additional income is necessary just to keep up.
  
  
• Experiences over savings: 59% say spending on meaningful experiences today feels more practical than saving for long-term goals that seem increasingly out of reach, with 65% feeling uncertain whether traditional retirement planning will deliver real security.

Redefining Financial Practices

• Peer-to-Peer learning on the rise: Financial practice is becoming more social. Gen Z is now more likely to consult social media experts (24%) than they are their parents (21%) to refine their money strategies.
  
  
• Financial silence is waning: The practice of "financial silence" is disappearing, with 73% of respondents wanting to know someone's exact financial situation before the third date. 

The Rise of Real-Time Financial Decision-Making

• AI is becoming a financial co-pilot: 39% are already using AI to budget or inform financial decisions, often running "what if" scenarios before taking action.
  
  
• Hybrid decision-making is emerging as the norm: Many are combining AI insights with human advice, creating more personalized, responsive approaches to money management.
  
  
• Digital tools are reshaping engagement: 16% use apps that gamify saving and spending, reinforcing financial habits through continuous interaction.

"Gen Z and Millennials aren't failing at money. The system they inherited has changed, and they're responding in real time," said Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance. "What we're seeing is a generation shifting from long-term financial ideals to daily financial practices, such as using windfalls to stabilize, leaning on tools like AI to make decisions, and prioritizing what's immediately within their control. That adaptability isn't a weakness — it's a new form of financial resilience."

Despite these challenges, younger generations remain highly engaged, adapting their behaviors and redefining what financial success looks like in today's environment.

"Every generation must answer the economic test of its time, and this generation is no different. Gen Z and Millennials are not walking away from success. They are searching for a model that speaks to their lived reality, their struggle, and their hope. The old rules alone cannot carry them where they need to go. We must give them something deeper than theory. We must restore their sense of unlimited possibility, backed with vision, tools, and a pathway. At Operation HOPE, we believe financial literacy is the new civil rights issue of our time. And our calling is to help this generation move from uncertainty to confidence, from surviving to thriving, and from financial stress to lasting wealth—so they can build not just a living, but a future," said John Hope Bryant, founder, chairman, and CEO of Operation HOPE.

Redefining Hope for a New Financial Reality

Held during the last week of Financial Literacy Month, Beyond Finance's Financial Practice Week is an initiative designed to help people reconnect with their financial power by building personalized, emotionally grounded practices. To examine your money mindset further, explore a money management guide from Beyond Finance and then take Operation HOPE's quizzes, AI video training, and micro-courses.

This survey was commissioned by Beyond Finance in collaboration with Operation HOPE, and conducted by QuestionPro, a third-party research company, from March 16 - 18, 2026, with a collective sample of 2,000 Millennial (born 1981 to 1996) and Gen Z adults (born 1997-2008) Americans. An executive summary of the findings can be found here. Full research findings are available upon request.

About Beyond Finance

Beyond Finance, LLC, is the nation's largest debt consolidation company. In its commitment to providing clients with a personalized approach to move beyond debt, Beyond Finance provides simple and transparent solutions that help consumers lower their eligible monthly payments, reduce the impact of interest, and reach a debt-free life sooner. Beyond Finance holds an A+ rating with the Better Business Bureau and has been awarded with multiple recognitions for its commitment to clients: Organization of the Year – The Business Intelligence Group's Excellence in Customer Service Award, Gold Stevie Award for Outstanding Customer Service Department, Banking Tech Award – Financial Wellness Champion, Best In Biz Gold Award for top Customer Service Team, and 3 ConsumerAffairs' "Buyer's Choice Awards." Beyond Finance has offices in Chicago, Atlanta, and Houston. For more information, visit BeyondFinance.com.

About Operation HOPE, Inc.

Since 1992, Operation HOPE has been moving America from civil rights to "silver rights" with the mission of making free enterprise and capitalism work for the underserved—disrupting poverty for millions of low and moderate-income youth and adults across the nation. Through its community uplift model, HOPE Inside, which received the 2016 Innovator of the Year recognition by American Banker magazine, Operation HOPE has served more than 4 million individuals and directed more than $4.2 billion in economic activity into disenfranchised communities—turning check-cashing customers into banking customers, renters into homeowners, small business dreamers into small business owners, minimum wage workers into living wage consumers, and uncertain disaster victims into financially empowered disaster survivors. For more information visit OperationHOPE.org. Follow the HOPE conversation on Twitter, Facebook, Instagram, or LinkedIn.

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SOURCE Beyond Finance