Gen Z Sells Possessions, Skips Meals to Survive Economic Strain

Young adults across America are grappling with intense financial challenges, resorting to extreme measures like raiding retirement savings, forgoing meals, and selling personal items to cover basic expenses. A new report paints a stark picture of Generation Z’s struggle to stay afloat in a tough economic climate marked by rising costs and stagnant wages.

The 2025 Employee Financial Wellness Report from Payroll Integrations shows that 38% of workers across all age groups have tapped into their retirement accounts. For Gen Z, born between 1997 and 2012, that number soars to 46%, far outpacing millennials at 31% and matching the 41% rate for both Gen X and baby boomers.

High debt loads are a key driver for Gen Z’s early withdrawals, with 42% using retirement funds to pay off loans, compared to just 6% of millennials and 17% of Gen X. The report notes that Gen Z carries an average of $94,101 in debt, largely from student loans, with monthly repayments averaging $526, nearly double the $284 paid by other generations.

Beyond dipping into savings, many young adults are making tough sacrifices to afford daily necessities. Surveys indicate that 22% of Gen Z renters skip meals to cover rent, while 19% postpone medical care due to tight budgets, reflecting the acute financial strain they face.

Housing costs have surged, requiring homebuyers to earn 80% more than in 2020, while median incomes have grown only 23%. This gap forces many in Gen Z to rely heavily on credit cards, with some racking up thousands in high-interest debt to cover essentials like groceries and utilities.

The economic environment has also pushed Gen Z to sell personal belongings, from electronics to clothing, to make ends meet. Online platforms report a spike in young adults listing items for quick cash, a trend experts link to rising inflation and limited job opportunities in entry-level fields.

Despite these hardships, 85% of Gen Z workers contribute to retirement plans, showing a commitment to future financial security. However, frequent withdrawals risk undermining these efforts, potentially locking them into a cycle of borrowing from their own savings.

Financial advisors are calling for employer-driven solutions, such as programs that match student loan payments with retirement contributions, a strategy supported by recent federal policies. These initiatives could ease the burden on Gen Z, helping them balance immediate needs with long-term financial goals.