Gen Z Is Skipping The Emergency Fund, But Can You Afford That In Jersey?

Let’s get real about living in NJ, okay?

South Jersey isn’t cheap. It may be cheaper than the rest of NJ, but it’s far from budget-friendly when being compared to the rest of the country.

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From property taxes to tolls to just grabbing a hoagie and a coffee, everything costs more here. So, imagine my surprise (and slight panic) when I saw that 62% of Gen Z has zero emergency savings. Nothing. Not even $500 stashed for a flat tire or surprise vet bill. What kind of financial planning are people doing these days?

More Credit, Less Cushion

Nearly half of Gen Z and millennials say they’d need a credit limit increase just to handle an emergency. Meanwhile, only a quarter of baby boomers feel the same pressure.

It’s not because younger people are being reckless, either. It’s actually because they just don’t have the cash cushion.

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Did you know that studies show 42% of all consumers see their credit card as a backup plan?? Shockingly enough, that number jumps for folks in cities and low-income households.

Here in Jersey, where rent and groceries can eat your paycheck whole, that’s not exactly a stable plan.

Desperation, Not Irresponsibility

Here’s the kicker… 1 in 4 Gen Z and millennials say they’d max out their credit card in a crisis. Not even because they want to though, but because they feel like they have no other choice.

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We’ve got to talk more about building realistic savings goals, especially in high-cost states like ours. Because relying on plastic in a crisis? That’s a risky bet when it comes to all that interest you’d be paying back.