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By Alice Gibbs
Senior Reporter
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Generation Z are entering adulthood with more financial burdens than any previous generation, according to a new survey.
A poll by Talker Research for Newsweek revealed that Gen Z—born 1997-2012—carries the highest average personal debt when compared to older counterparts. Gen Z carries the highest average personal debt, at $94,101—far above millennials ($59,181) and Gen X ($53,255).
The data reflects a troubling reality: Younger adults are struggling under the weight of financial pressures. More than half, 52 percent, of Gen Z respondents said debt is on their minds most or all of the time, making it hard to have worry-free moments.
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Economic reports, including recent findings from the New York Federal Reserve, confirm that Gen Z is falling behind on debt payments at increasing rates, with more than 90-day delinquencies at their highest level in three years.
Some members of the young generation are moving out of the U.S. as a result of financial pressure. The 2024 Expat Report found that 45 percent of Gen Z expats left the country because they wanted a lower cost of living.
Personal finance expert TomoCredit CEO Kristy Kim told Newsweek: "Gen Z carries more credit card debt than older generations due to a combination of rising student loan burdens, along with the skyrocketing cost of basic living, inflation that just won't quit, and a lack of financial education."
Many young adults are relying on credit cards to cover everyday expenses, experiences and travel. Without proper financial literacy, they struggle to manage growing balances and face costly interest payments.
Kim warns that this trend has long-term consequences for individuals and the economy as a whole:
"Rising debt at a young age can trap individuals in cycles of high-interest payments, delaying major financial milestones like homeownership and retirement," she said. "On a larger scale, excessive consumer debt weakens spending power and increases the risk of defaults, which could impact financial institutions and overall economic stability."
Unlike previous generations, Gen Z is navigating an economic landscape shaped by inflation, skyrocketing housing prices and student loan debt. A United Way study found that 69 percent of Gen Z adults cite inflation and the cost of living as their top financial concerns, far outpacing worries about taxes or government spending seen in older generations.
Despite concerns about Gen Z's spending, Kim said there is always help available.
"If you're struggling with credit card debt, the first step is to gain control over your spending by creating a realistic budget that prioritizes necessities and cuts back on non-essential expenses," she said. "Also, honestly evaluate if it might be time to take on some sort of side-hustle to get ahead."
She also suggested strategic debt repayment methods like the debt avalanche method (paying off high-interest debt first) or the debt snowball method (starting with smaller balances for motivation). For those overwhelmed by multiple payments, debt consolidation could be a solution to lower interest rates and simplify repayment.
"This trend highlights the urgent need for better financial education, responsible lending practices, and policies to address rising living costs before it becomes a deeper economic issue that affects all of us and future generations to come," Kim said.
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