Gen Z is getting serious about their finances, even if it means spending nothing on romance. More than half of young adults say they spend $0 a month on dating, according to a new Bank of America Better Money Habits study, as they face higher living costs and rethink how love fits into their budget.
“Gen Z is challenging the stereotype when it comes to young people and their finances,” said Holly O’Neill, president of Consumer, Retail and Preferred Banking at Bank of America in a press release. “Even though they’re facing economic barriers and high everyday costs, they are working hard to become financially independent and take control of their money.”
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Many say romance doesn’t require a budget
This shift in cheaper dating reflects broader financial behavior. Seventy-two percent of Gen Z respondents reported taking steps to improve their finances over the past year. More than half saved money, and 24% paid down debt.
At the same time, 64% of those surveyed said they cut spending — especially on dining out and grocery shopping, choosing budget-friendly options instead.
Among Gen Z adults, 53% of men and 54% of women said they don’t spend any money on dating each month. Still, some are keeping dating on the budget. Twenty-five percent of men and 30% of women reported spending less than $100 a month on romance.
Interestingly, a report from BMO Bank found that Gen Zers are actually the biggest spenders on dating overall. According to BMO, they average $194 per date — outspending millennials at $191, Gen X at $172, and baby boomers at $127.
“It’s clear that dating or being in a relationship today comes with pressure to spend which can affect how well people are able to stay on track for their goals,” said Paul Dilda, head of U.S. Consumer Strategy at BMO.
Higher income, more relationships
Several studies suggest a connection between financial health and romantic interest.
A separate report highlighted by Straight Arrow News found that people with higher incomes are more likely to pursue relationships.
“A good income may help pay for an enhanced single experience,” writes Michael Pereira of Phys.org. “But it may also signal a transition to a phase where having a partner feels necessary for fulfillment.”
Meanwhile, Gen Z also has lofty expectations when it comes to financial success.
A study from financial firm Empower found that Gen Z respondents suffer from what researchers call salary dysmorphia. Many believe it will take an annual income of over $587,000 to feel financially secure.
TikTok and the rise of free dates
Despite income gaps and spending anxiety, Gen Z hasn’t given up on dating, but they are reimagining it. Popular low-or no-cost date ideas are trending on social media, from thrifting and coffee walks.
For some couples, scrolling for or looking at dream homes counts as quality time. For others, a free sunset or shared playlist is more romantic than a price tag.
