Self-soothing with an Amazon order… But seven pairs of Crocs won’t help the real problem (neither will that popular fluffy headband). US consumer debt hit a record high of $4.8 trillion in February as inflation-strapped Americans took out high-interest loans and maxed out credit cards. The IOU blues are especially bad for younger generations:
Pricey cold-brew habit: Millennials’ average credit-card debt rose nearly 30% in March from a year earlier, hitting a whopping $5.8K, Credit Karma reported.
Thrifting or splurging? Gen Z’s average credit-card debt soared 40% to $2.8K as Shein hauls and Celsius habits weighed down balances.
Need those fuzzy slides… to ease the sliding state of finances. April is financial literacy month, but many appear to be choosing “financial avoidance” instead. Sticky inflation, high interest rates, and dwindling savings have fueled anxiety. Psychologists say that ignoring your finances and overspending to cope with stress is typical among younger generations. The pandemic just made it more common.
- Saw it on TikTok: Social media has exacerbated zillennials’ splurge cycle. Lots of younger users make purchases based on influencer recs, a recent Pew survey suggested. And over 60% of users said they regretted a social-inspired impulse purchase, Bankrate found.
The bar for “doing OK” is a lot higher… In December, over half of Americans earning more than $100K/year said they lived check to check. As prices rise faster than wages, US workers are demanding a minimum of $76K to start a new job — up $2K+ from November. Meanwhile, the overconsumption cycle has also raised the bar for getting by.