According to credit agency TransUnion, Gen Z consumers between the ages of 22 and 24 have higher debt levels and delinquency rates for a number of credit products — from credit cards to mortgages and student loans — than millennials did at the same age during the Great Recession.
Student loan debt
Young people are more likely to have student loan balances: 24.3% of millennials and 20.2% of Gen Z are in student debt, compared to 14.9% of Gen X, 6.1% of boomers and only 1.4% of the silent generation. But among those who have student loan debt, Gen X owes the most, on average.
Gen X (ages 43 to 58) not only carries the most debt on average of all the generations, but is also the debt leader in credit card and total non-mortgage debt.
Which generation has the lowest credit score? As of 2023, the generation with the lowest credit score is Gen Z (18 – 26). That said, the generation with the lowest credit score is almost always going to be the youngest generation of adults.
The Gen Z debt situation
The youngest generation in the study has the lowest debt ($16,652) but the vast majority, 97%, still carry a balance. As far as student loans, Gen Zers owe significantly less than other generations, with a median balance of $12,172 — roughly half of what millennials owe for school.
Black adults are more than twice as likely than white adults to have student loan debt. The following graph includes federal and private student loan debt among all adults. On average, Black adults in the U.S. also hold higher student loan debt balances than borrowers of other races.
99.3% of millennials had assets in 2022, while 97.5% of Gen Xers and 93.8% of baby boomers had assets when they were around the same ages. Meanwhile, 88.1% of millennials carried debt in 2022, compared with 86.9% of Gen Xers and 85.8% of baby boomers around that age.
One important caveat: More millennials (12.7%) had a negative net worth compared to Gen Xers (11.5%) and baby boomers (11.9%) at similar ages. That finding is supported by other research pointing to a widening wealth gap within the millennial cohort.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.
Baby boomers have the highest net worth, averaging $1.6 million per household. Baby boomers have the highest household net worth of any US generation.
Gen Z Is the unhappiest generation in America: Report. Jessica Burbank and Amber Duke react to new findings in the world happiness report that a great percentage of the Gen Z population is unhappy.
The Standard Route is what credit companies and lenders recommend. If this is the graduate's choice, he or she will be debt free around the age of 58. It will take a total of 36 years to complete. It's a whole lot of time but it's the standard for a lot of people.
Myth #1: Wealth Lasts Many Generations
But the truth is, around 70 percent of wealthy families lose their wealth by the second generation. More so, around 90 percent of families lose their wealth by the third generation. There are many reasons wealthy families are likely to lose their wealth over time.
Higher percentages of Black (88 percent) and American Indian/Alaska Native (87 percent) students received grants than students who were of Two or more races (79 percent), White (74 percent), and Asian (66 percent).
64% of all student loan debt belongs to women. The average student debt for women in the U.S. is $31,726. Women have a median annual salary of $56,170 following college graduation, which is 26% of what men can expect to earn following graduation.
Four years after graduation, black students owe an average of 188% more than white students borrowed. Black and African American student borrowers are the most likely to struggle financially due to student loan debt making monthly payments of $260.
According to a 2022 survey, Gen Z talent is more likely than any other generation to leave or consider leaving a job due to inflexible work policies. Fortunately, there are alternatives to increasing connection. Developing robust onboarding practices is one way Gen Z talent can be re-engaged and ultimately retained.
SILENT GENERATION (1954 and Earlier)
Because they largely grew up with little money and needed to stretch their dollar when they could, the Silent Generation is quite frugal and emphasizes the importance of saving. They are understandably cash-reliant, as credit was not common early in the 20th century.
According to data on 78.2 million Credit Karma members, members of Generation X (ages 43 to 58) carry the highest average total debt — $61,036.
Even better, just over 1 in 5 people (21.2%) have an exceptional FICO credit score of 800 or above, all but guaranteeing access to the best products and interest rates.
Your score falls in the range of scores, from 800 to 850, that is considered Exceptional. Your FICO® Score and is well above the average credit score. Consumers with scores in this range may expect easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
And when it comes to credit, 850 is the highest the FICO® Score☉ scale goes. For more and more U.S. consumers, practice is making perfect. According to recent Experian data, 1.54% of consumers have a "perfect" FICO® Score of 850.