Gen Z appears to have cases of economic lying.
A recent Credit Karma poll shows that nearly half of adult members (49%) are in their late 20s — say they feel their plans for the future are “meaningless.”
Courtney Alev, a consumer finance advocate at Credit Karma, said 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.
Generation Z's “Looking Thoughts” – a cohort born almost 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, and if they spend something they want but are willing to do, there will be a lot of financial impacts in the long run,” 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.
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 they have (or are working on) is worth it if AI takes on all the work anyway. So is that just meaningless?”
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.
Also, “buying things was never easy.” For example, with the rise of buying now, you will pay for loans later.
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
Young adults should try to rewire their financial thinking, experts said.
“The most important thing is you don't want to bet on yourself,” Sun 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 invest $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.