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Gen Z appears to have cases of economic lying.
According to a recent Credit Karma poll, nearly half of adult members (49%) are in their late 20s – says they find plans for the future “meaningless.”
Courtney Alev, a consumer finance advocate at Credit Karma, says that a free attitude towards summer spending has taken root among young people who feel financially “despair” and “despair.”
They are thinking, “What’s the point when it comes to saving for the future?” Aleph said.
The “Looking Thoughts” among Gen Z – a cohort born from almost 1997, between 1997 and 2012 – can be dangerous. If not checked, young adults may acquire high profit debt that cannot be easily repaid, which could lead to delaying milestones such as moving out of their parents’ home or saving for retirement.
However, the late teens and early twenties are probably the best time for young people to develop healthy financial habits. I’ve still started investing and am able to make good profits through decades of compounding interest, experts said.
“If these young people don’t plan their financial future, there will be many economic impacts in the long run. [are] They want it, but use Willie Lily,” Aleph said.
Why Gen Z feels disillusioned
That said, experts said that many people feel disillusioned.
Experts say the labor market has been tough recently for new entrants and participants looking to switch jobs.
The unemployment rate in the US is relatively low, at 4.2%. However, as of March 2025, Americans aged 22-27 are much higher among Americans aged 22-27, with 5.8% of people without a bachelor’s degree and 6.9% of people without a bachelor’s degree, according to data from the Federal Reserve Bank of New York as of March 2025.
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Young adults are also plagued by debt concerns, experts said.
“We’re committed to providing a range of services to our customers,” said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California. “And they wonder if the degree to which they have (or are working towards) is worth it if the AI doesn’t take all the work anyway. So is that pointless?”
According to the university’s board of directors, approximately 50% of bachelor’s degree recipients in the 2022-23 class graduated from student debt, with an average debt of $29,300.
The federal government resumed its student debt collection by default in May after a five-year hiatus.
The Biden administration’s efforts to allow large strips of student debt, including plans to cut monthly payments for struggling borrowers, have been largely stunned in court.
Sun, a member of CNBC’s Financial Advisors Council, said:
Meanwhile, in a 2024 report, the New York Fed found that credit card delinquency fees are rising faster for Gen Z than for other generations. Approximately 15% said they made the most of their cards than other cohorts.
“Buying things was never easy,” said Aleph, for example, with the increase in buying now.
According to a survey by Credit Karma, BNPL promoted the majority (77%) of Gen Z users. The company voted for 1,015 adults aged 18 and over, of which 182 are from Gen Z.
These financial challenges, for example, exacerbate the general environment of political and financial uncertainty amidst the tariff policy being addressed and its potential inflation and impact on the US economy, for example, experts said.
“You start stacking all these things up with each other and it can create a lack of optimism among young people who are about to start in their financial lives,” Aleph said.
How to manage your financial mal laziness
Patricio Nahuelhual |Moment | Getty Images
Young adults should try to rewire their financial thinking, experts said.
“The most important thing is, you don’t want to bet on yourself,” San said.
“Look at that as an opportunity,” she added. “If you’re young and your costs are low, this is the time to invest as much as you can now.”
Time is in their favour of their ability to worsen investment growth over decades, Aleph said.
Investing may “feel like impossible”, but even if you’re investing $10 this month in a tax retirement account like the Roth IRA or 401(k), it can help a bit.
The latter is one of the easiest ways to get started as it can earn an automatic pay deduction and a “match” from your employer.
“This is the most exciting time to actually invest because you’re young,” Sun said.
Setting up mindful spending habits, such as setting up a wait period of at least 24 hours before purchasing non-essential items, she added, can help prevent unnecessary spending.
Sun advocates repaying high-profit debts before focusing on investments, so interest payments don’t immediately go out of control. Or, alternatively, they could fund a 401(k) and try to get a full match for the company.
“Instead of going into ‘woe is me’ mode, turn it into action,” Sun said. “Be thrilled with the opportunity to plan, take your baby step and invest.”
