Sep 04, 2024

Question of the Day: How much higher are credit card balances for 22- to 24-year-olds compared to 10 years ago?

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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Need more Credit activities? Check out NGPF's Managing Credit unit page which is full of ideas to engage your students!

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Want to attend NGPF Professional Developments and earn Academy Credits on your own time? Check out NGPF On-Demand modules!

 

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.

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