Answer:

33% of Gen Z (18-24 year olds) have on average 1.51 credit cards with a median balance (amount they owe) of $606. 

Questions:

• What is the first word that comes to mind when you hear "credit card?"
• When do you think you will get a credit card? 
  • If you have one already, when did you get it? How do you use it? 
• What do you think are some of the pros/cons of credit cards? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (TransUnion):

Many younger consumers receive smaller credit limits on cards — part of lenders’ strategy to manage risk with new-to-credit consumers — which can drive higher utilization rates. In the United States, credit-active Gen Z consumers have an average of about 1.5 cards, with an average utilization rate of 31%. Consumers are still generally using the credit cards they receive prudently, with low median balances per consumer of 606 USD.  

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Check out this video on Gen Z credit habits from our FinCap Friday library: Move Over, Millennials!

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NGPF's Fine Print: Credit Card Agreement will teach students to read the fine print when it comes to understanding how credit cards work

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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