Generation X
This generation is not only saddled with the highest mortgage debt of all the age groups but they also owe the most debt. In a recent study by Go Banking Rates, they found that 46% of this generation carries credit balances with an average of $4000 or more.
Overall, the average millennial carries about $28,317 in debt, not including mortgages, according to Experian's 2021 State of Credit report, which classifies millennials as those born between 1982 and 1995. When including mortgages, millennials' total debt averages $255,527 per person.
With federal student debt totaled at $1.57 trillion, the majority of federal student debt is concentrated with Generation X. The average Baby Boomer with student loans tends to owe more than the average Millennial. However, on the national scale, Millennials have a larger overall debt than Baby Boomers.
Members of Generation X have the highest average credit card debt at $7,155, followed by baby boomers and millennials, according to credit bureau Experian's latest consumer findings. With an average credit card balance of $1,963, consumers in Generation Z carry the lowest credit card debt.
Key findings
67% of millennials report having credit card debt, while just 36% face student loan debt. About 1 in 4 cardholders across all generations think they'll die in debt. 25% of women think they'll never be debt-free, compared to 19% of men.
Another source of increased student debt is higher college attendance. Since 2000, undergraduate enrollment has increased by more than 3.5 million students. 95 More people are getting graduate degrees too. 96 For many, borrowing money to pay for training and education can yield returns over a lifetime.
It's the second largest form of debt in the United States behind home mortgages. 74% of Gen Z borrowers and 68% of millennials who took on student loan debt for their higher education delayed a major financial decision as a result of their debt, according to a report released Wednesday by Bankrate.com.
Unfortunately, millennials grew up in an America where politicians promised them everyone had a right to a college degree. And by making it the government's job to facilitate this process, these same politicians made young people's lives a living hell thanks to their student loan debt.
And yet, over half of Americans surveyed (53%) say that debt reduction is a top priority—while nearly a quarter (23%) say they have no debt. And that percentage may rise.
That is why the generations today each span 15 years with Generation Y (Millennials) born from 1980 to 1994; Generation Z from 1995 to 2009 and Generation Alpha from 2010 to 2024.
In February, a Bankrate survey observed that 54% of younger millennials and 46% of Gen Z respondents said their emergency savings had declined since 2020. The survey also revealed that millennials were more likely than other generations to have higher credit card debts than savings balances.
Generation Z was raised on the internet and spends a significant amount of time using phones, tablets and other mobile devices to connect with friends as well as brands and influencers. They have high expectations for the appearance, functionality and security of the online stores they shop at.
Being Frugal
One of the biggest shared financial habits that millennials and Gen Z inherited is frugality, according to Starr Wells, owner of personal finance blog A Centsational Life.
Gen Z Characteristics on Money: Thrifty Consumers Despite Having $360 Billion - Bloomberg.
Generation Z students are on track to become the most educated generation. They have higher high school graduation rates and lower dropout rates than those who came before. In 2018, 57% of 18 to 21-year olds were in college, compared with 52% of Millennials, and 43% of Gen Xers at similar ages.
Americans owe about $1.75 trillion in student loans, according to data from the Federal Reserve. Millennials owe an average of $38,877 in student loan debt, according to an Experian consumer debt study. 36% of US millennials say student loan debt is keeping them from owning homes, a survey found.
Boomers are most burdened by credit-card debt, which an average of 81.4% of boomer consumers are dealing with. That's more than any other generation, and they also carry the highest overall median balance of $3,958.
Of course, Baby Boomers are still worth nearly eight times as much. The older cohort saw their wealth increase roughly 28% to over $71 trillion since the pandemic began, while Gen-X saw a 65% jump to roughly $42 trillion. Millennials still hold far less wealth than previous generations did at similar ages.
But despite their higher earnings, millennials still hold less wealth than previous generations did at their age. When boomers were roughly the same age as millennials are now, they owned about 21% of America's wealth, compared to millennials' 5% share today, according to recent Fed data.
Generation Z is also well known for using FaceTime instead of texting or calling, unlike previous generations and their utilization of social media and digital services. Generation Z truly live and breathe the virtual connection life, and it's extremely common to see them becoming social and product influencers.
1. no cap. You've likely seen cap and no cap used on social media, but these terms actually pre-date social media and Gen Z by several decades. In Black slang, to cap about something means “to brag, exaggerate, or lie” about it. This meaning dates all the way back to at least the early 1900s.
And coming up last but not least is Generation Alpha, the name given by social analyst Mark McCrindle to the youngest children on the planet. By the year 2025 there will be nearly 2 billion members of Generation Alpha across the globe.