Gen Z‘s Credit Scores Lag โas Financial Pressuresโฃ Mount
NEW โคYORK โฃ- A recent USAA survey reveals a concerning trend: nearly half of Gen Z โconsumers lack a full understanding of how credit scores function, and a full 20% have โnever โeven checked their score. This knowledge โgap โcoincides with a period of important financial strain for the generation, โas rising costs and economic uncertainty โขforce many to relyโ on supplemental incomeโ and grapple with limited โsavings.
The lack of credit โขliteracy among Gen Zโข is particularly โคnoteworthy given theโ generation’s already precarious financialโข footing. While โขactively attempting to save, Gen Z is demonstrably vulnerable โขto โunexpected expenses, unable to readily withstand financial shocks.โ PYMNTS Intelligence research shows Gen Zers hold an average of $5,948 โคin readily available โcash, significantly less thenโข the $8,594 held by millennials and $9,313 by โคGeneration X.
This financial fragility isโ amplified by the current economicโ climate. Nearly 70% of Genโฃ Z adults cite rising prices as their biggest day-to-day challenge, a higher percentage than both โคmillennials (64%) and baby โboomers (39%). Even those with savings are anxious; 40%โข express significant concernโฃ overโฃ theโ impact a $2,000 โexpense wouldโฃ have on their financial cushion,โข according to PYMNTS.
to combat thesโ pressures, โฃgenโฃ Z is increasingly โturning to side gigs. These part-time positions now account for 57% โof the totalโ income for Gen Zโ consumers – a โฃsubstantial increase โฃfromโข the 43% average across all side โขhustlers. For those earning less than $50,000 annually, side gigs contribute a staggering 76% of their total income, effectively becoming a primary source of liquidity.
