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According to H&R Block’s 2024 Outlook on American Life report released today, Americans are optimistic about their economic mobility, and the data shows they have reason to be. The fourth annual report from H&R Block (NYSE: HRB) details how most Americans (66%) across income levels and generations feel optimistic about their income growth, retirement prospects, and ability to maintain financial stability—despite the threat of unmanageable debt.

The analysis from this year’s Outlook on American Life report draws upon anonymized, aggregated tax return data from the 11.4 million tax filers who H&R Block tax professionals assisted virtually or in one of 9,000 offices during tax season 2024. Tax returns from the past 25 years were also utilized to identify historical income trends across generations.

The report also includes findings from four nationwide surveys of 7,852 Americans fielded between July and August 2024 to gather perspectives on how Americans feel about their current financial situations. All surveys were weighted to be nationally representative of gender, age, ethnicity/race, education and region. Among those surveyed were 1,503 Gen Z respondents, one of the largest surveys to date of Americans ages of 18 and 28.

Collectively, H&R Block analyzed billions of data points to paint a portrait of earning, investing, saving, career aspirations and debt trends among four generations—Gen Z, Millennials, Gen X and Boomers—representing hardworking Americans nationwide.

“Nearly 70 years of experience and preparing more than 20 million returns each year gives H&R Block a unique perspective on hardworking American’s financial situations and the behaviors that are shaping the economy,” said Curtis Campbell, President of Global Consumer Tax, H&R Block. “We understand that as the economy evolves, so do the needs of our clients. These insights, drawn from decades of anonymized, aggregated data and extensive research, enable us to help individuals, families and small businesses navigate their financial journeys.”

Each Generation Has Greater Income and Buying Power Than the Last

This year’s report found that most Americans, regardless of income and demographics, are optimistic about their income growth and ability to retire and maintain financial stability despite rising costs and debt. In fact, most Americans expect to exceed their parents’ economic opportunities, including 70% of Gen Z, 65% of Millennials, 53% of Gen X and 60% of Boomers.

Tax-return data shows this optimism is well-founded: 71% of Gen Z, 62% of Millennials, 56% of Gen X, and 51% of Boomers are earning income at rates that beat inflation. Gen Z experienced the largest relative increase in earnings, making 30% more in 2023 than they did in 2022. Of those surveyed, 60% of Gen Z and 53% of Millennials anticipate their financial situation improving in the coming year primarily due to rising income.

Each generation has greater buying power as well. Gen Z is enjoying as much as 30% more buying power than Millennials at their same age. Similarly, Millennials enjoy as much as 30% more buying power than Gen X at their same age. Gen X has about 20% more buying power than Boomers at their same age.

Shrinking Households, Market Gains and Tax Credits are Boosting Income

More Americans are opting not to have children, realizing a significant cost savings. On average, it costs $237,482 to raise a child to age 18.1 The number of Millennials—taxpayers in their childbearing years—who file as DINKS (double-income-no-kids) has more than doubled in less than a decade, from 7% in 2015 to 16.7% in 2024.

For those who do have kids, they are benefiting from tax credits. In 2023, the Child Tax Credit (CTC) collectively reduced Americans' taxes by $74 billion and returned $48 billion to taxpayers through refunds.2

More Americans are benefiting from market gains as well. About 32% of H&R Block tax filers reported investment dividends and interest last year, up from 27% in 2015.

Gen Z Is Job-Hopping, State-Hopping, and Investing Their Way to Success

Gen Z is more innovative and financially savvy than Americans might expect. This generation is changing jobs at unprecedented rates primarily to increase their salary. Masters of the side hustle, they are also earning more by starting new businesses, following their passions, and investing.

One in three changed jobs last year and more than one-third did so to increase their salary. While a majority (59%) prefer to work for a large company as a salaried employee, 29% aspire to work for themselves by starting a business, influencing others on social media, or working as an artist/maker.

Nearly one in four (24%) drives for an app to augment their income, and more than half (51%) anticipate monetizing a hobby in the coming year. To help reach their financial goals—which include buying a house (63%) and saving for retirement (86%)—Gen Z is also investing, primarily through employer-sponsored plans (41%), as well as in cryptocurrencies (22%) and gold and silver (15%). Further, this generation is more than twice as likely as Millennials (9% vs 4%) to invest in fine art and collectibles.

Job-hopping Gen Zers changed state residency more than any other generation last year, moving to cities where they could capitalize on more lucrative career opportunities. The top destinations for Gen Z were New York, Chicago, Brooklyn, San Antonio, and Austin.

But Debt Is the Monster Lurking Under the Bed

While the cost of living might keep Americans awake at night, it’s debt that threatens to derail future financial stability. Gen X is carrying the most credit card debt (55%), followed closely by Millennials (49%), Boomers (47%), and then Gen Z (39%) – though it’s Gen Z that feels the most burdened. Of those holding credit card debt, as many as two in three people say their level of credit card debt is unmanageable. On top of credit card debt, as many as 1 in 6 Americans hold student debt, and more than a third say they have more student debt than they can manage.

Ongoing financial pressure and spending continue to undermine Americans’ ability to save. Nearly one in three taxpayers say they spent all or more than they earned last year. Almost one in five say that, without income, they wouldn’t be able to cover household expenses for a full week. Gen X is the most likely to be “not at all confident” that they are doing what is needed to meet longer-term goals, such as saving for retirement.

“No matter their life stage, or tax situation, H&R Block helps hardworking Americans receive the best possible outcome at tax time—with the care, dependability and expertise for which we are known,” said Campbell.

To learn more and read the full Outlook on American Life report, please visit www.hrblock.com/outlook-on-american-life/. To view media assets, including a downloadable report and infographics, visit www.hrblock.com/tax-center/media-kit/outlook-on-american-life-report-media-kit/.

1 “Annual Costs to Raise a Small Child Increased By 19.3% Nationwide to $21,681 Between 2016 and 2021,” LendingTree. https://www.lendingtree.com/debt-consolidation/raising-a-child-study/ ​

2 “Filing season statistics for week ending May 10, 2024,” IRS. https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-may-10-2024

About H&R BlockH&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

Media Contacts:
Media Relations:	Heather Woodard, (816) 379-2568, heather.woodard@hrblock.com Media Desk, mediadesk@hrblock.com
Investor Relations:	Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com