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- Gen Z’s debt is skyrocketing due to stagnant wages, soaring housing costs, expensive education, and emotional "doom spending" habits.
- Despite working hard and getting degrees, young adults today earn less (adjusted for inflation) than older generations did at the same age.
- Many Gen Zers are maxing out credit cards just to survive, caught between a broken economy and a lifestyle they were promised but can't afford.
How Gen Z Ended Up in So Much Debt: The Broke Generation
If you ask a random Gen Zer to describe their financial situation in one word, chances are, you’ll hear something like “broke,” “anxious,” or just a heavy, soul-crushing “ugh.”
And honestly? They’re not wrong.
Between 2022 and 2023, Gen Z’s average debt ballooned over 15%, while Boomers saw theirs decrease. Yeah. Let that sink in. Meanwhile, Millennials' debt grew by 8%, but Gen Z? We’re basically getting crushed under the weight of bills, loans, rent, and a whole economy that feels rigged against us.
Money vs. Inflation: The Original Beef
First off, the biggest scam Gen Z inherited? Wages vs. Inflation.
Older generations love to throw around, “Well, I bought my first house at 24!” like it’s some universal achievement. What they leave out is that their wages actually matched the cost of living. Adjusted for inflation, 22-24 year olds in 2013 made almost $52,000 a year. Today? It's down to around $45,000.
And get this: from 2021 to 2022, the median income for 15-24 year-olds dropped a whopping 5.8%. It’s the worst drop of any age group.
Meanwhile, groceries? Rent? Healthcare? Tuition? All skyrocketing. So yeah, the math ain’t mathing.
"I finished my Master's and I’m barely making more than I did after undergrad. How is that normal?" — Amara, 25, New York
Swipe Now, Cry Later: The Credit Card Trap
Since paychecks aren’t stretching far enough, credit cards have become survival tools.
The average credit card balance for early 20-somethings is 26% higher than what Millennials carried at the same age back in 2013. And if you think maxing out a card is rare, think again: 1 in 7 Gen Zers have already hit their credit limits.
It’s not about buying designer bags or flexing; it’s literally about surviving.
Groceries, gas, rent, bills — and when there's still a hole at the end of the paycheck? Swipe. Again.
Housing: The Ultimate Unreachable Dream
Remember when owning a home was like, a part of becoming an adult? Yeah, same. Gen Z's version of that dream is more like:
🏡 → 😂.
The median home price is now over $400,000. Mortgage rates are hitting 7%. And for renters? National rents have jumped 30% since 2019 — while wages barely budged 20%.
Half the time, rent alone eats up more than 50% of Gen Z’s paycheck. Saving for a down payment feels about as realistic as saving up to buy the moon.
"Homeownership feels like a fantasy world. I’m just trying not to get evicted." — Luis, 22, Miami
Degrees Cost How Much Again?
If your parents ever said, “Go to college, it’s your ticket to success!” — they weren’t lying... back when tuition was $1,300 a year. Now? $21,000 a year for public universities. Private schools? Over $52,000.
And even adjusted for inflation, college costs today are more than double what they were in the '70s.
Student loans are drowning Gen Z before they even enter the workforce. The same degree that was supposed to secure our future is straight up shackling it. No wonder college enrollment is dropping — a lot of people are just saying, “nah.”
"I did everything right—school, degrees, internships. And I’m still stuck paycheck to paycheck." — Shayla, 23, Chicago
Doom Spending: Treat Yourself (Because Everything Else Sucks)
Enter the era of doom spending:
When the future looks bleak, why not buy that $7 coffee or splurge on a concert ticket? Might as well get something out of life, right?
Retail therapy isn’t new, but doom spending hits different. It’s survival mode mixed with existential dread. 35% of Gen Z admit they doom spend — sometimes just to feel a tiny bit of control or happiness.
And the worst part? It's scientifically backed: people who feel like their future is hopeless are way less likely to save money. Instead, we doom scroll, doom spend, and hope tomorrow’s version of ourselves figures it out.
Hyper-Consumption: Social Media's Gasoline on the Fire
TikTok and Instagram aren’t just showing you cute cats anymore — they’re full-on selling you lifestyles that are unattainable for 99% of people.
Luxury trips, brand collabs, high-rise apartments, skincare routines that cost more than rent... It's constant exposure to "what you should have," but can't afford. And thanks to buy now, pay later services? It's easier than ever to spend money you don't actually have.
That constant cycle? It’s setting Gen Z up for even more debt. It's aspirational capitalism on steroids.
What's Next?
Honestly? Gen Z isn’t just going to magically bootstrap out of this one.
The reality is, systemic change is needed — things like student loan forgiveness, better wages, affordable housing, and real financial safety nets. Until that happens, young adults will keep juggling multiple side hustles, fighting burnout, and battling the creeping anxiety of never getting ahead.
But one thing's for sure: Gen Z is loud, smart, and not afraid to call out the BS.
And that might just be our secret weapon.
Stay tuned for more deep dives into the real struggles (and real wins) shaping Gen Z life at Woke Waves Magazine. 🌊✨
#GenZDebt #StudentLoansCrisis #DoomSpending #HousingCrisis #WokeWaves
