Posted on 07/11/2025 2:14:00 AM PDT by Libloather
The kids aren’t alright.
It’s no surprise that Gen Z — the generation born between 1997 and 2012 — isn’t the best with their money. A poll from Newsweek revealed that adult Zoomers have around $94,000 in personal debt — thanks to never-ending credit card spending.
And the proof is in the pudding — according to the 2025 TIAA Institute-GFLEC finance and retirement report, most of Gen Z is financially illiterate.
The report showed that on average, Zoomers score only 38% correct on financial literacy tests.
Because of this, in the U.S., 29 states now require a personal finance course as a high school graduation requirement.
However, the course requirement comes a little too late for Gen Z since 3 out of 4 of them wish they were taught finances 101 in school because they don’t feel prepared now, according to a recent report from Intuit.
“We know that students need to begin learning essential personal finance concepts earlier, and our latest Prosperity Index Study results show that 60% of Gen-Z are eager for more financial education,” Dave Zasada, vice president of education and corporate Responsibility at Intuit, told Forbes.
Luckily, Gen Zers do have access to informational resources online yet many feel overwhelmed by it all. It also doesn’t help that many parents financially support their Zoomer kids — which doesn’t teach them the value of a dollar.
A report conducted by Savings.com revealed that 50% of US parents hand an average of $1,474 a month to their Gen Zers to keep them afloat in today’s economy.
(Excerpt) Read more at nypost.com ...
It wasn’t the Gen Z’rs who engaged in a national overspending spree while simultaneously offshoring our tax base.
BS. They know. They just spend like there is no tomorrow.
IMHO each generation makes it worse. The Silent and Boomer generations were bad to make buying on department store credit popular. Generation X made it common to buy anything on credit cards while also eating out more and buying new cars and some running up college debt with worthless degrees. Millennials do all of that even more, especially the college debt for little ROI, while also paying a lot each month for various entertainment subscriptions.
The proof of the pudding is in the eating.
-PJ
Gen Z says, “What’s a checking account?”
You don’t have to be a genius to know that excessive credit card debt is stupid. Soon the interest payments alone become unbearable.
We charge most everything on a card and pay off completely monthly. What I find amusing is the monthly payment if we don’t pay it off in full. For let’s say a 5,000 balance the monthly payment is only $50. A person could never pay that off at that payment rate when the interest charged is between 15 & 20%. It’s just basic math.
“Most people don’t balance their checkbook….ever. With the advent of online banking they just check their balance on their phone.
But I was stunned when I saw how people treated their money. Most people treat their money very poorly.”
Just turned 76. Somehow through good luck, fortune, I got thru my working life in a middle class job and ended up in the upper 3% of wealth. I balance my check book monthly. Gotta know where it’s going. No debt. I live a frugal life, eventhough I don’t have to.
“These “toys” include daily Starbucks at $10 a pop, the latest Apple I phone, weed, meals delivered by door dash, breweries and on and on.”
Yep... Because they are told they just can’t live without these, “Everyone does it”. But to be fair, it happens with our generation too, it is universal. All my life I have been watching peers try to out do each other with material status symbols. It is a competition for the most expensive homes, cars, toys than their neighbors, friends, coworkers, Etc. Bigger, better, faster, more expensive...
Everyone is trying to out do everyone else with shinier status symbols so they can feel more important. And it is the same as the kids. “I can afford it because I have good credit”. Fortunately I was in business all my life so I never fell into this psychological consumerism/status symbol trap. I never bought anything on credit except property. And even then it was a practical purchase not for status to out do anyone.
“I’m 75. I got a weekly allowance of $7.50 back in the 1960s. It included school lunches, drum lessons,saving for summer camp, and some to spend. It taught me how to budget.”
I was fortunate and was born into business. So from a very young age I understood the difference between wants or needs and profits or loss. Practicality is absolutely the golden rule in business and budgeting.
Credit cards offer 2-3% cash back. So people think “the more I spend the more I make”. The interest far exceeds the “cash back” if you don’t pay it off. I get 2% back on my MC. I also pay it off every month. I’ve had this card for 20+ years and have never paid a penny in interest.
“A person could never pay that off at that payment rate when the interest charged is between 15 & 20%. It’s just basic math.”
That is 15%-20% COMPOUNDED DAILY... I just did the math a few minutes ago. If one owed a balance $100 and the interest rate was 5% that would be $21 dollars a month interest owed for that month. It is four times what it should be for the month.
It is absolutely insane anyone would even agree to this kind of robbery.
two of my kids fit in the Gen Z category, but all four are very fiscally responsible. They are employed and all live independently.
I don’t think we’ve given any of them money to live. We have loaned them a little bit but we also get it back.
None of them have any debt. They even pay cash for their cars.
One did take a loan from her car but she bought it from her brother and he let her pay in a few installments with zero interest.
“No debt. I live a frugal life, even though I don’t have to.”
I would not call it Frugal at all, I would call it wise, intelligent, and practical. You would be a good businessman because this self discipline is what it takes to be successful.
On Chris Plante’s show last night there was a short segment about the Gen Z Gaze. Maybe it’s the conclusion of decades of school’ purposeful dumbing down the kids.
“Maybe you’ve walked into a restaurant, store, or coffee shop and instead of a smile or friendly ‘Hi, how can I help you?’—you’re met with a silent stare. No greeting, no words, just… the look.
“Well, that blank expression has a name now. Scientists and social media users are calling it the ‘Gen Z Gaze’.”
Well, cut her some slack. She may just be reaching out to her genetic roots as some sort of simian.
Something is seriously off with your calculations. A balance of $100 at 5% interest would only cost about $5 in interest for an entire year, and compounding daily would add less than 13 cents to that.
I remember these stories about my generation back in the 1980s. We were stupid kids who couldn’t make change. Every generation has its smart people and idiots.
There are many days I look at stories how well off the welfare class has it and wonder if I’m really busting my ass for no reason at all when I can just join them and live more comfortably than I do now
I’ve run into lots of people that think it’s the best thing in the world to get a big tax refund. When I tell them my goal is to make it work so I have to write a check for around $100 at tax time, they think I’m crazy.
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