July 10 (Reuters) - Gen Z adults in the U.S. face

increasing financial challenges because of inflation and rising

living costs, with 46% relying on financial assistance from

their parents and families, according to a report by Bank of

America ( BAC ) published on Wednesday.

Half of the 1,091 people aged 18 to 27 surveyed by the bank

were not on track to buy a home in the next five years.

Respondents were polled in April and May, with the survey

weighted to meet national population benchmarks, including

gender and race.

The survey showed 46% of young people were unprepared to

save for retirement and 40% were not ready to start investing in

the next five years.

"When I talk to young people, especially Gen Z, I tell them

to set a budget and stick with it," said Holly O'Neill, Bank of

America's ( BAC ) president of retail banking.

Of those polled, 67% are making lifestyle changes to offset

growing living expenses. The shifts include budgeting, cutting

back on restaurant meals, staying home instead of attending

events, and shopping at cheaper grocery stores.

Emergency savings were another pain point, with 57% of Gen Z

respondents lacking enough money to cover three months of

expenses.