Tejal Somvanshi
Money isn’t adding up for Gen Z. The generation born between 1997 and 2012 is drowning in debt, living with parents longer, and wondering if they’ll ever own a home.
Credit cards are a big part of the problem. Gen Z carries 30% more credit card debt than millennials did at their age, even after counting inflation, TransUnion reports. They’re also more likely to max out their cards and miss payments.
“Rising costs of living, tuition fees, and an unstable job market have made milestones like homeownership, financial independence, and even career stability seem more out of reach than ever before,” says Jennifer Rubin, who studies young people at education group foundry10.
The numbers tell a tough story. A recent survey of 1,714 people with student loans found:
- 79% struggle to save for emergencies or retirement
- 75% aren’t able to invest any money
- 52% say buying a home is impossible
- 35% are putting off having kids
Living with mom and dad is becoming the new normal. In 2004, only 11% of 25-to-34-year-olds lived at home. Now it’s 16%. Home prices and high mortgage rates are keeping young buyers out of the market.
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Social media makes things worse. Instagram and TikTok bombard young people with ads. One-click buying and “buy now, pay later” services make spending too easy.
“The convenience of digital payments and online transactions makes impulsive spending more accessible than ever,” says Keisha Blair, a money expert. “Social media further amplifies this, exposing them to a constant stream of influencers and aspirational lifestyles.”
These money problems create a chain reaction. Dallas Fed researcher Enrique Martínez García explains it simply: “When young people can’t afford to move, buy homes, or start families, it slows down the whole economy.”
But there’s hope. Some Gen Zers are finding creative solutions:
- Co-living to cut housing costs
- Pursuing alternative education to avoid debt
- Choosing side hustles that offer flexibility
- Being more intentional about spending
“You can be more intentional and prioritize meaning, sufficiency, and fulfillment over relentless striving,” says Elizabeth Husserl, who wrote “The Power of Enough.”
Rod Griffin from Experian, a credit reporting company, offers practical advice: “Start with a simple budget. Cut unnecessary subscriptions. Set small money goals you can actually reach. Get help if you need it.”
The old roadmap to success – college, job, house, family – isn’t working for many young people anymore. But they’re writing their own rules. Some buy houses with friends. Others choose flexible work over traditional jobs. It’s not the life their parents planned, but it might be the life that works now.
Laurel Road’s Schaefer shares her personal approach to avoiding impulse buys: When she fears she’s making an impulse purchase, she leaves the item in her cart for 24 hours to decide if she really wants it.
This isn’t just about young people struggling with money. It’s about how American life is changing. When an entire generation can’t afford the basics, everyone feels the impact. The solution might not be working harder to follow the old rules – it might be writing new ones.
