Gen Z Embraces Soft Saving as 82% of Americans Say Saving Is Harder Now

3 articles · Updated · abcnews.com · Aug 13

Gen Z is increasingly adopting “soft saving,” a budgeting approach that still sets money aside but gives more room for spending on current experiences instead of chasing aggressive early-retirement goals.
Pew found 82% of U.S. adults believe it is harder for young people to save for the future now, reflecting pressures from higher living costs, unaffordable housing and uncertainty about long-term financial milestones.
One saver cited by ABC sets aside 20% of each paycheck first, then uses the rest for bills and discretionary spending—a middle ground between strict austerity and not saving at all.
Financial counselor Kumiko Love said the approach can still build wealth through small habits and simple products such as high-yield savings accounts or employer-matched 401(k) plans.
At current rates of up to 4.5%, $2,000 in a high-yield account or CD could grow to nearly $2,100 in a year, underscoring how “soft saving” aims to balance present life with gradual accumulation.