Is Gen Z the financial anxiety generation?

Core Insights - Gen Z is often labeled as financially anxious, but this perception may overlook their deeper understanding of financial matters [1][2] Financial Behavior Trends - Over half of Gen Z consumers experience discomfort with credit cards, leading 63% to switch to alternative payment methods [3] - U.S. debit card spending has surpassed credit card growth for the first time in nearly four years, indicating a shift in consumer behavior [3] - 90% of installments at Afterpay are paid with debit cards, a trend consistent globally over the past five years [3] Financial Intelligence - Gen Z's financial anxiety stems from their experiences during economic crises, leading to a more cautious approach to credit [4][5] - The average credit card balance of $6,371, with an annual percentage rate over 20%, would take over 18 years to pay off with minimum payments, costing $9,259 in interest [5] - Their avoidance of credit cards reflects a sophisticated risk assessment rather than irrational fear [5] Redefining Financial Responsibility - Gen Z has redefined responsible spending, viewing credit cards as a potential trap rather than a tool for building credit history [6]