Get to Know Gen Z: The Next Generation of Economic Influencers
By Sydney Mayer
Gen Z is the newest “it” generation on the scene, and their economic power is growing rapidly. By 2030, Gen Z’s income is expected to quintuple and will represent at least 27% of total global income.
But this soon-to-be economic giant is often misunderstood. It’s time to get to know Gen Z, their spending habits, and what they’re looking for in financial institutions.
1. Gen Z blends traditional and digital
Gen Z likes a mix of traditional and contemporary payment options. A TransUnion report dispels the pervasive myth that credit cards have fallen out of favor with Gen Z, when in fact over 50% have their own credit cards. On the other hand, Gen Z also welcomes non-traditional payment choices, with over 53% of the generation using person-to-person payment apps and 25% interested in using cryptocurrency. While traditional options like cash and debit cards remain the most used payment types across all generations, Gen Z uses digital payment methods more than other generations.
2. Gen Z’s payment preferences
While Gen Z uses a blend of payment options, they use them for different purposes. Most report using person-to-person payments apps for transactions between friends. Many also use contactless payment technology like Apple Pay or Google Pay to make small store purchases. For larger purchases, Gen Z tends to use credit cards, with at least 25% using credit cards to make purchases over $500.
3. Gen Z wants seamlessness and security
When asked what they’re looking for in a financial institution, 79% of Gen Z-ers report wanting a secure, seamless platform to manage all of their accounts in one place and pay from whichever account they choose. Gen Z also cares about digital security more than any other generation, with 83% wanting the ability to automatically lock accounts if they expect fraud.
Zogo helps credit unions educate, engage and attract young people. Backed by behavioral science research at Duke University, its gamified financial literacy app teaches sound financial fundamentals and rewards users for learning. Their mission is to make personal finance fun, simple, and social. Founded by Gen Zers, Zogo understands what it takes to reach the younger generation.