Gen Z debt growth and shifting consumer behaviors

Generation Z is experiencing rapid debt growth that outpaces older generations. Recent data shows 45% of Gen Z respondents reported an increase in debt over a twelve-month period, a rate higher than millennials (39%), Gen X (34%), and baby boomers (30%). In the United States, revolving credit card debt for Gen Z adults aged 18–29 increased by 19% between Q3 2023 and Q2 2026, while baby boomer debt decreased by nearly 26% in the same timeframe.

This accumulation is linked to high levels of financial anxiety, with nearly 60% of Gen Z reporting frequent or constant debt-related stress. Contributing factors include high interest rates, rising costs for housing and food, student loan obligations, and a lack of financial education. These pressures are reportedly impacting life milestones such as career moves and home ownership.

Financial behaviors show significant volatility. Many young adults are turning to high-risk activities to manage balances; 45% of Gen Z engage in gambling, sports betting, or speculation. Notably, 40% of Gen Z view sports betting as an investment strategy, and 52% have redirected money intended for long-term investing into betting.

Simultaneously, Gen Z exerts influence in luxury and ethical markets. The generation outspent all other age groups on fine art last year, driven by digital platforms and tech-sector wealth. Furthermore, they are driving corporate responsibility, with 87% believing businesses must address environmental and social issues, and 74% having stopped purchasing from brands due to a lack of social or environmental action.