Feb 26, 2020

Question of the Day: Fill in the blanks. ______ % of Gen Z (18-24 year olds) have on average _______ credit cards with a median balance (amount they owe)  of _________.

Answer:

33% of Gen Z (18-24 year olds) have on average 1.51 credit cards with a median balance (amount they owe) of $606

Questions:

  • What is the first word that comes to mind when you hear "credit card?"
  • When do you think you will get a credit card? 
    • If you have one already, when did you get it? How do you use it? 
  • What do you think are some of the pros/cons of credit cards? 

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):

Many younger consumers receive smaller credit limits on cards — part of lenders’ strategy to manage risk with new-to-credit consumers — which can drive higher utilization rates. In the United States, credit-active Gen Z consumers have an average of about 1.5 cards, with an average utilization rate of 31%. Consumers are still generally using the credit cards they receive prudently, with low median balances per consumer of 606 USD.  

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Check out this video on Gen Z credit habits from our FinCap Friday library: Move Over, Millennials!

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NGPF's Fine Print: Credit Card Agreement will teach students to read the fine print when it comes to understanding how credit cards work

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Looking for more Questions of the Day, be sure to check out the QoD Library here or better yet, subscribe and get it sent to your inbox every morning. 

 

 

 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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