Inflation is inflating Gen Z's credit card debt.

Answer:

$586 more, adjusted for inflation.

Questions: 

• What factors do you think have caused Gen Z to increasingly rely on credit cards?
• Gen Z has also seen increases in balances for auto loans, personal loans, and mortgages. How do you think this will affect their planning for the future?
• What are some strategies that Gen Z can use to reduce their overall debt?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (TransUnion): 

The new TransUnion study, Solving for Z, explored credit usage by today’s Gen Z consumers and compared it to similarly aged Millennials one decade ago1. The study found that both Gen Z and Millennial borrowers faced early challenges in their credit journeys. 75% of surveyed Gen Z consumers said they had their finances negatively impacted by the pandemic-induced recession, while 60% of Millennials said the Global Financial Crisis had negatively impacted them. However, today’s Gen Z consumers have also faced an additional challenge – a rapid rise in inflation.

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About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.