Let's see how well Gen Z has avoided credit card debt...

Answer: $3,456

Questions:

1. Do you have a credit card? Why or why not?
2. What are the negative impacts of carrying credit card debt month-to-month?
3. Why might Gen Z have lower credit card debt than other generations?
4. Do you think young people with credit cards expect to go into debt? Explain.

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Experian):

 "What changed? There are three identifiable contributors to the recent acceleration of millennial credit card debt balances:

• Rising APRs: While the average APR of 23% isn't kind to credit card borrowers of any age, it puts a bigger squeeze on consumers with larger balances and further accelerates growth. Even worse: Millennials are likely receiving higher APRs than older generations, who have better average credit scores.
• Higher rates of inflation: Even if their wages are keeping up with higher prices, many consumers carrying balances from month to month may still be paying off purchases made in 2022.
• Life itself: Consumers tend to spend more as working adults than generations outside of ages 25 to 54, considered the primary working demographic by the Labor Department. And as many millennials are painfully aware, home purchase costs remain out of reach for many in their generation. Tighter budgets may force consumers of any generation to lean on credit card spending to make up for sharp increases in the costs of housing, driving or insurance, among other higher costs that can't be deferred."

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About the Author

Kathryn Dawson

Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.