Gen Z — those born between 1997 and 2012 — may be great at TikTok trends, but when it comes to dollars and cents, they’re falling short. Newsweek reports that the average adult Zoomer is drowning in approximately $94,000 in personal debt, primarily due to credit cards and living costs they struggle to manage.
The latest TIAA Institute-GFLEC report drives it home: the average Gen Z score on basic financial literacy tests? A bleak 38%. It’s no wonder 75% of them wish they’d had a personal finance class in school. Sure, 29 states now require it for high school graduation — but for many young adults, that’s too little, too late.
Intuit’s Dave Zasada says the hunger for money smarts is there — 60% of Gen Z wants more financial education. However, while free advice abounds on the internet, many Zoomers feel paralyzed by an overwhelming amount of information and a lack of real-world experience.
Part of the blame, critics say, lands squarely on parents’ shoulders. Half of U.S. parents give their Gen Z kids an average of $1,474 a month, according to Savings.com. Reddit threads are bursting with older generations rolling their eyes at parents handing out credit cards instead of money lessons. “They’re just meandering through life on a tether,” grumbled one commenter. Another added: “They don’t need credit cards — mom and dad pay for everything anyway.”
Experts say the fix is simple but challenging: teach kids about money before debt accumulates. Step founder CJ MacDonald urges parents to explain credit basics early. Stockpile CEO Victor Wang suggests letting kids dip their toes into real investing — with companies they actually care about.
The bottom line? If Gen Z wants to be financially free, TikTok alone won’t cut it — they’ll need real-life money lessons, and maybe, a little less help from mom and dad.
