About this Video

• Video Title: THIS Is Why Gen Z Are The Poorest Generation
• Channel: The Infographics Show
• Speakers: The narrator (unnamed) and brief quotes from Maddie (25), a Gen Z Reddit user, Ted Rossman (Bankrate credit card analyst), Spencer Kammerman (University of California at Irvine graduate), and Sophie (23).
• Duration: 00:18:38

Introduction

This video explores the reasons behind Gen Z's financial struggles, examining factors such as low wages, high debt, increasing cost of living, and the impact of the COVID-19 pandemic. It challenges the narrative that Gen Z's financial difficulties are solely due to irresponsible spending habits.

Key Takeaways

• High Debt and Low Net Worth: Gen Z has a significantly lower net worth than previous generations, with high levels of credit card and student loan debt. Many are working multiple jobs to make ends meet.
• Increased Cost of Living: The cost of housing, car insurance, and healthcare has increased disproportionately compared to wage growth, leaving Gen Z with less disposable income. Housing costs are significantly higher for Gen Z than for Millennials a decade earlier, and even higher compared to Baby Boomers in the 1970s.
• High Interest Rates: Credit card interest rates are considerably higher now than they were a decade ago, making it harder for Gen Z to pay off debt.
• Impact of the COVID-19 Pandemic: The pandemic disrupted Gen Z's entry into the workforce and higher education, hindering networking and career development opportunities.
• Job Market Challenges: The job market is increasingly competitive, with high application rates due to AI-assisted applications, and younger workers are often the first to be laid off during economic downturns. There's also employer bias against hiring Gen Z.
• Intergenerational Inequality: Economic inequality plays a significant role, with a correlation between low income and higher birth rates. This means a disproportionate number of Gen Z individuals are born into poverty, facing systemic disadvantages in education and opportunities.