As Gen Z faces rising prices and increasing credit card debt, their spending preferences are evolving. Despite the initial popularity of buy-now, pay-later (BNPL) services like Klarna and Afterpay, a recent survey reveals that a significant majority of Gen Z consumers prefer to pay upfront rather than in installments. Only 14% of 18- to 25-year-olds expressed a preference for BNPL, while 59% opted for outright payment. This shift is influenced by a desire to avoid debt and make better financial decisions, as many in this age group report feeling regret over overspending. While BNPL services offer convenience, they are increasingly viewed as a potential trap for impulsive purchases. Many Gen Zers, like Zachary Timms, are prioritizing saving for significant milestones and using credit cards for their advantages, such as rewards points. Ultimately, Gen Z's spending habits reflect a balance between enjoying immediate experiences and being cautious about long-term financial health.
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