Gen Z’s Current Financial Health

Written by Alexandra Scicchitano

  Generation Z, people born between 1996 to about 2010, has a better credit score than both Millenials, people born between 1981 to 1995 and Generation X, people born between 1965 and 1980.

     According to LendingPoint.com, Millenials credit score is 629, Gen X is 632 and Gen Z is 637.

     How could a group of people with their highest age in the group being at 24 be able to hold a better credit score than previous generations?

     According to NerdWallet, 46% of Gen Z has family members paying for housing costs and currently, 42% are on the same health insurance as family. 

     Compared to Millenials, Baby Boomers and Gen X which all have an average loan debt of $11,000, Gen Z only has an average of about $8,500. 

     A little more than 25% of all Gen Z has student loan debt and since almost all of Gen Z still lives at home or with family, one can come to the conclusion that the debt is most likely from student loans.

       Gen Z has a lot of misconceptions about building and retaining good credit. 

     56% of Gen Z has applied for a credit card, which is almost half compared to 90% of Baby Boomers who have applied for one. 

     66% think that it is necessary to keep a balance on a credit card. 55% believe its bad to have more than one credit card.

  26% of Gen Z do not think adults need to worry about building credit and 28% do not worry about investing for their retirement.

     If one fourth of Gen Z does not worry about building credit, how is their credit score higher?      

     The obvious correlation is that Gen Z does not have bad credit because they have minimal bills to pay since their parents are still paying for most of their needs such has housing, health insurance and phones. But also, it could just be by chance as half of their generation is still under the age of 18.

     A lot of Gen Z are brand new adults so a lot of them feel unsure of managing finances. 41% of Gen Z is anxious and 40% is nervous and confused. 

     As more and more Gen Z gets older and more become adults, the overall financial health of this group will be a lot more prevalent. It is hard to know where Gen Z will stand until more than half of the age group are adults.

     For now and later, Gen Z needs to focus on getting and keeping a good credit score to start and continue to have good overall financial health for their futures. 

     Financial health and credit scores are important. Let D.A.L.S. Credit Solutions and Notary help you achieve that.