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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: Westend61/Getty Images June 02, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When it comes to paying with plastic, comfort levels vary from generation to generation. Our latest data, compiled in Bankrate’s December 2021 , found 55 percent of people between 18 and 29 years old had at least one credit card. That went to 73 percent for people 30 to 49 years old, 78 percent for those aged 50 to 64 and 89 percent of those 65 and up. Out of all of the generations, Gen Z (often classified as born between 1997 and 2012) tends to be less inclined to hop on the credit card bandwagon. There are a few factors contributing to this. Among them are lack of access to credit, fear of falling into a debt spiral and a rise in popularity of “buy now, pay later” alternatives. On the opposite end of the spectrum, older consumers tend to have longer and more access to a wider range of credit cards, making them more comfortable owning and using credit cards. Gen Z s relationship with credit cards
With so many alternatives to traditional credit cards, many Gen Zers have put off adding a credit card to their wallet, and are more likely to use debit cards to cover their purchases. Another popular alternative is “” (BNPL). Think of BNPL as an installment loan. It gives younger consumers the opportunity to spread out large payments over time and avoid falling down a debt spiral by only using BNPL where it’s accepted and only for certain purchases. While Gen Z tends to have a reputation for being debt-averse, some studies show this group isn’t necessarily anti-credit card. But they are more careful than older generations about how often they use them. According to , Gen Z consumers have increased the number of credit cards they carry and have an overall credit card debt balance of $2,197 — compared to Gen X cardholders who carry an average credit card balance of $7,718. How Gen Z compares to older generations
A few key generational differences have contributed to this shift in credit habits between older and younger generations. The Credit Card Accountability Responsibility and Disclosure Act (known as the ) of 2009 made it more challenging for consumers under 21 to get a credit card without first meeting certain income requirements or securing a cosigner. It also prevented credit card companies from marketing their products on college campuses. This change led to a delay in first-time credit card ownership for Gen Zers who, unlike previous generations, haven’t been targeted for credit products at a younger age and have faced additional barriers when it comes to accessing new credit. Additionally, found that 67 percent of Gen Zers rely on their parents for financial assistance—that’s more than any other generation. This could make them less inclined to take on consumer debt without a reliable source of income to help them pay their balance off. Even for older Gen Zers who have entered the workforce, rising inflation has made it more difficult to save and pay down debt compared to older consumers who tend to earn higher salaries and have more money in their savings accounts. What drives Gen Z s financial decisions
Studies show Gen Zers are the least financially literate of all generations. Additionally, many Gen Zers are wary of making risky financial moves after watching their parents navigate the Great Recession and millennials struggle to pay down student debt and secure jobs in the aftermath. In fact, Gen Zers cite money concerns as a major stressor. Mounting economic fallout from the pandemic and rising inflation are a few factors weighing on younger Americans today. Experts say money and personal finances will continue to be a for many Americans until the economy begins to move in a positive direction, post-pandemic. Financial resources for Gen Z
Despite not being as well-versed in personal finance, Gen Z Americans have many options for boosting their financial literacy. For many Gen Zers who were born into the digital age, the answer to most of their financial questions is at their fingertips. There are a number of , “,” and that can help them improve their overall financial literacy and help them take charge of their finances. Growing that knowledge and learning to properly manage their money and build a positive credit history is a key step in hitting major financial milestones like purchasing a vehicle, becoming a homeowner or taking out a business loan. Creating a simple using a strategy like the 50/20/30 method or the envelope method can help consumers avoid overspending, and keep them accountable to their savings goals and recurring payments each month. These responsible money habits pay off in the long run, demonstrating to larger financial institutions that they’re capable of managing their finances and can be a trusted borrower in the future when applying for a or a loan. The bottom line
Credit card ownership and vary from generation to generation as a result of several external, economic factors that can influence consumers and how comfortable they are owning and using credit cards. For many Gen Zers, credit cards are seen as a valuable tool, but must be managed responsibly and used sparingly. SHARE: Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Related Articles