Mismanaged budgets drive high debt levels among young adults
AUSTIN, Texas, Nov. 8, 2024 /PRNewswire-PRWeb/ -- CreditCards.com, a leading resource for credit card information and financial literacy, has released findings from a recent survey examining credit card habits among Gen Zers. Conducted in September, the survey of 1,261 full-time Gen Z workers highlights concerning trends in credit card use, including high debt levels, late payments, and gaps in financial literacy.
The survey reveals that 1 in 3 Gen Zers with credit cards currently carry debt, while 56% report missing or making late payments. Mismanaged budgets and living costs that are too high are significant factors behind these debt levels.
Key Findings:
- 63% of Gen Zers have credit cards, and among them, 33% carry debt.
- 1 in 4 Gen Z credit card users max out their cards most months.
- 19% of Gen Zers do not know their credit score, underscoring financial literacy gaps.
- 9% rely on their parents to help cover credit card payments.
Financial Struggles and Reliance on Parental Help
Over half of Gen Zers with credit cards have missed payments or relied on parental support, while nearly 1 in 5 say they have little understanding of how their credit scores impact major purchases. Additionally, many Gen Zers do not use tools that could help them manage finances: 41% have never used a budgeting app or financial planning tool.
The survey also highlights the need for financial education. 69% of Gen Zers believe financial literacy courses should be mandatory in both high school and college.
Savings and Long-Term Financial Planning
The financial outlook for many young Gen Z credit card holders is challenging. Almost half have not begun saving for retirement, and 3 in 10 Gen Zers with credit cards have less than $100 in non-retirement account savings.
This survey was conducted online by Pollfish in September 2024, focusing on Gen Z full-time workers holding credit cards. To view the full report, please visit: https://www.creditcards.com/statistics/gen-z-credit-card-debt-survey/
Media Contact
Jennifer Miller, CreditCards.com, 0000000, [email protected]
SOURCE CreditCards.com
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