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Insight of the Day: 34% of Gen Z Consumers Say Splurging Contributes to Financial Distress

Gen Z's unique financial situation:

  • Gen Z's Financial Struggles: Surprisingly, Gen Z struggles to make ends meet at rates similar to the average US consumer, despite many living at home with no rent or mortgage obligations.

  • The Splurge Factor: A key difference is that 34% of Gen Z admit their financial distress is caused by splurging on non-essentials. This is significantly higher than older generations.

  • Why the Discrepancy?

  • Lower-paying jobs: Many Gen Z hold entry-level or service jobs with lower salaries.

  • Juggling school and work: Financial pressures can be compounded by the demands of education.

  • Fewer financial burdens: Gen Z typically lack the major financial responsibilities of older generations, like dependents, large debts, or savings-depleting events.

  • The Takeaway With no major expenses and their significant share of the future workforce, this is a prime time for Gen Z to focus on savings and financial wellness.

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