Financial woes continue to pile up for Puerto Rico/US Gen Zs
Gen Zs (ages 18-28) are finding adulthood more expensive than previous generations, and while most are trying to improve their financial health, high unemployment, inflation, an extremely tight housing market and lack of services are working against them.
Stateside BOA survey
A third of Gen Zs in the U.S. are stressed about their finances, and of those, 52% say economic instability is a root cause, according to Bank of America’s 2025 Better Money Habits survey.
About half (51%) of Gen Zs surveyed say the high cost of living is a barrier to financial success. More than a third (35%) said that their monthly spending is higher than they thought it would be, especially for everyday expenses including groceries (63%), rent and utilities (47%) and dining out (42%).
Lack of income contributes to their financial stability, with more than half (53%) saying they do not make enough money to live the life they want, and many are struggling to save consistently. In fact, 55% do not have enough emergency savings to cover three months of expenses.
While 39% receive financial support from parents and other family members, this is down from 46% a year ago. They are also getting less money: 22% receive $1,000 or more per month compared to 32% a year ago, and 54% receive less than $500 per month versus 44% a year earlier.
Over the last 12 months, 72% took steps to improve their financial health, such as putting money toward savings (51%) or paying down debt (24%). Nearly two-thirds (64%) focused on reducing expenses: 41% cut back on dining out and 23% shopped at more affordable grocery stores.
Local Gen Zs
In Puerto Rico, Gen Zs are facing similar and worse financial woes, and sometimes their only recourse is to move abroad, depriving the island of productive workers, according to Leslie Adames, economist and director of analysis and economic policy at Estudios Técnicos.
“People here see an unemployment rate of 5.7% and celebrate, but when you dive into the statistics, the figures for this age segment are worrying,” he told News is my Business.
According to the Department of Labor and Human Resources’ June Employment and Unemployment in Puerto Rico report, the unemployment rate was 25.7% for people 16 to 19 years old and 12.5% for those in the 20 to 24 age group. Most of the employment available to these group segments is part-time, Adames noted.
Double-digit unemployment in the context of inflation and a tight real estate market, as well as lack of services, unstable power and water grids, expensive utilities and security issues, drive young people to leave Puerto Rico in search of better job opportunities and quality of life.
“One can understand why many choose to leave, but this is a problem because these are the age segments that we need to retain,” Adames said.
In addition, more workers are postponing having children because they cannot afford it, which further exacerbates the situation, he said.
“This has significant social implications because younger workers are needed to help maintain the aging population, and without them, the Puerto Rico government has to increase taxes to provide those services.”
Without job stability, local Gen Zs cannot qualify for mortgages, even with assistance programs.
“Because of their fragile financial situation, many have to live with their parents and depend on them, which creates additional financial stress on the household and older groups,” Adames said.
Many young people are choosing academic degrees and careers for which there is little or no demand in the labor market, he explained. Consequently, many of them graduate but cannot find employment, so they go back to college for additional schooling, further delaying working and having children.
“We must consider whether we need new policies for the development of human capital and skills that are in high demand in order to expand job opportunities for these young people,” said Adames.
He pointed out that Gen Zs have a very different mindset than Gen Xers and millennials because they have grown up in a state of permanent crisis.
“They didn’t experience the splendor of the ’90s, when we were doing very well. They’ve lived in a Puerto Rico that has been in crisis for 20 years. And while many want to stay and make a better Puerto Rico, they lack the opportunities to do that,” he said.
As a result of their upbringing and experiences, Gen Zs have different priorities that have a significant impact in the labor market and business world.
“They see how their parents and grandparents lived to work, and they don’t want that. They don’t want to make the same sacrifices. They want work-life balance,” Adames said. “This mindset has consequences on how corporations are structured — especially the rigid ones like banking, insurance, those built by baby boomers — because they’re in conflict with what the new generation wants.”
