Does Gen Z like credit cards?
The news: Debit cards are Gen Z's favorite payment method, with more than two-thirds (69%) reporting daily or weekly users, per a study from EY. Only 39% of Gen Zers reported frequent credit card use, per the survey—compared with 51% for older generations.
Among all generations, Gen Zers are most likely to use their credit card to pay for everyday purchases, such as gas or groceries. More than a quarter of respondents (27%) use their card for these types of purchases.
The most important credit card feature for baby boomer respondents is no annual fee while Gen Z, millennials, and Gen X slightly prefer cards with low interest rates. Across all generations, no annual fees and low interest rates are the top two most important features a credit card can have.
Gen Zers are more likely to cite streaming video, streaming music, and playing video games as daily activities compared with the general adult population, per a May 2023 Morning Consult survey. They're also less interested in traditional TV and listening to the radio.
Since the Fed started increasing rates in March 2022, average credit card balances for Gen Z increased 62%, rising from $2,000 to $3,300. Likewise, average credit card debt for millennials increased 50%, jumping from $4,500 to $6,700.
Positive culture and better alignment with their values: A large majority of Gen Zers (80%) want to work for organizations that share their personal values of making the world a better place.
Gen Z wants to see authentic, funny, and relatable content. They also want to see content that celebrates individuality and self-expression. What values resonate with Gen Z? Some values that resonate with Gen Z are authenticity, connection, community, and self-expression.
Type of spending | Percentage |
---|---|
Household bills and expenses | 52.34% |
Clothes and accessories | 44.07% |
Going out/entertainment | 37.49% |
Food delivery/eating out | 36.99% |
Apps for Mobile Payments: This generation is most likely to adopt payment apps, especially ones that allow for the instant transfer of funds via their mobile device. Mobile Wallets and Contactless Payments: Research shows that 79 percent of Gen Z consumers are using mobile wallets in various ways.
Research suggests that Gen Z trusts traditional banks more to secure their data and needs digital services to be exceptional to retain their customers. Financial institutions must understand their motivations and values to take a share of this fast-growing market.
How old is Gen Z right now?
Generations | Born | Current Ages |
---|---|---|
Gen Z | 1997 – 2012 | 12 – 27 |
Millennials | 1981 – 1996 | 28 – 43 |
Gen X | 1965 – 1980 | 44 – 59 |
Boomers II (a/k/a Generation Jones)* | 1955 – 1964 | 60 – 69 |
Gen Z is the generation born in the 15-year span from 1997 to 2012. In 2024, they will turn between 12 and 27 years old. This is the newest generation to gain influence in the world, from joining the workforce to being old enough to vote.
A growing discourse suggests that Generation Z (Gen Z) is endowed with higher cognitive abilities compared to their predecessors, the Millennials. This assertion prompts an exploration into the unique characteristics and experiences that might contribute to the perception of heightened intelligence within Gen Z.
The news: Gen Z's credit card debt is growing faster than that of any other generation, according to data from Credit Karma. Gen Z credit card balances averaged $3,328 in Q2, a 4.23% increase from $3,193 in Q1. Despite this growth, Gen Z still holds the least credit card debt of any generation.
Generation Z is racking up more credit card debt than previous generations, while Generation X holds the highest average of credit card debt, according to recent data from Credit Karma.
Americans collectively owe over $1 trillion in credit card debt. But one generation carries the most, on average: Gen X. The average credit card balance for Gen Xers, defined at those between the ages of 43 and 58, rose to $9,123 in the third quarter of 2023, according to Experian's latest available data.
Like Millennial Pink, Gen Z colors favor the eye-popping Cyber Lime (forecasted to be big in 2024) and Digital Lavender, also aligned with inclusivity. “[Cyber Lime] can speak to all, which Gen Z is very sensitive to,” said Guilbert.
She describes Gen Z as being associated with vibrant and cheerful yellows, a color palette that symbolizes their positive and optimistic perspective. This hue represents qualities such as sunshine, warmth, and hope for the future, embodying the generation's positive outlook.
The members of Generation Z, the oldest of which are now in their 20s, on average are expected to live to 100 and beyond. Health technology may or may not eventually lift Gen Zers well past that.
If a Gen Z-er refers to something as “cringe,” it means it's cringeworthy. It makes them feel awkward, embarrassed or downright disgusted.
What does Gen Z struggle with the most?
Gen-Z feels substantial anxiety and stress about jobs, long-term financial stability and major life steps, such as buying a home and starting a family.
Generation Z is known for Being resourceful
Because they are finding their answers, they are doers and activists—they jump in and do—which means they may ask for your forgiveness rather than your permission. Gen Z, the children of Gen X, value self-reliance and independence and are self-directed.
Plant-based alternatives for animal products and meat are popular with Gen Z. In fact, 19% of Gen Z reported that they embrace plant-based eating habits. Many plant-based ingredients are more environmentally sustainable as well.
Research from Abacus Cooperative revealed that in 2022, Gen Z adults made an average of 5.3 donations — notably more than the 4.8 made by millennials and 4.7 made by Generation X (Mansfield, 2023).
In contrast to impulse-buying, this type of consumption involves patience. Charm says Gen Zers are willing to delay purchases until they truly need them, and also holding out until they can find the best deals. They also have exacting standards for the products themselves.