6 Signs a Gen Zer Is Doing Better Financially Than Their Peers

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If you were born between 1997 and 2012, you are a member of Generation Z. This year the oldest of the Gen Zers will hit 26 years old. Many Gen Zers are in college or have already graduated. Some have even started families or are years into their careers. 

As a proud zoomer, you may be wondering just how you compare to your friends. It is natural to wonder whether they can really afford that nice car they’ve been driving around or if they are starting down the dangerous path toward crushing credit card debt. Is your coworker truly crushing it or do they overspend on TikTok-suggested products? And, how do you stack up?

To find the answer we searched to find out just how the average Gen Zer is doing. If you are newly minted into adulthood and wondering where you stand, here are six signs you are doing better financially than your peers.

You Don’t Live Paycheck to Paycheck

Generation Z has come of age during a tumultuous time. Many entered their teenage years or young adulthood as a global pandemic brought the world to an abrupt halt. They are beginning their careers at a time with record-high inflation, exorbitant college tuition and in the middle of a housing crisis. 

It, perhaps, makes perfect sense that only one-quarter of those surveyed by Deloitte said that they could “comfortably cover their monthly living expenses” and 46% said that they were living paycheck to paycheck. So, if you have a little disposable income left over each month you can feel pretty good about your financial situation.

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You Can Pay Down Debt (Or Don’t Have Any)

Despite their youth, many zoomers are headed into young adulthood with significant amounts of debt. From student loans to credit cards, Generation Z is already having to make payments on unsecured debt. As of March 2022, Experian found that Gen Zers carried an average of over $2,400 in credit card debt. 

They also used more of their available credit than any other generation. According to the credit reporting company, Generation Z utilized approximately 23% of their available credit, the “highest average utilization rate of any generation.”

You Have a Credit Score Above 680

Another key indicator that you are doing better than your Gen Z counterparts is you have a credit score in the 700s. Experian found that the average FICO® Score for Generation Z in the second quarter of 2022 was 679. While it did increase by two points compared to the previous year, it was still substantially lower than many other generations including boomers, who had an average score of 742.

If you have a high credit score, keep doing what you are doing. If you are sitting at 680 or below, don’t fret, Experian notes that you may just need more time to build your credit history.

You Earn Over $23,000 a Year

A study by Self shows that the “estimated average annual earnings for Gen Z are $22,924.68.” Take a look at your W-2 and feel good if you are making over $2,000 per month because, on average, people around your age aren’t quite there yet. 

If you are able to make enough money at one job to make ends meet, you should consider yourself lucky. Over 80% of respondents said they had a side hustle. 

You Have More Than $2,400 in Your Savings Account

Another way to determine whether you are better off than your peers is your savings account. Self found that Gen Zers had around $2,400 in their savings. If you have been putting a portion of your paycheck aside each month, then you are likely in a more stable financial position than some of your companions.

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You Don’t Live at Home

Finally, when asked about their living situation, almost 40% of Gen Zers responded that they were living at home with their parents or family. As noted by Self, only 16% stated that they owned their own home. 

If you have moved out of your childhood home then you are doing pretty well for a zoomer. Given the price of rent, however, we don’t blame you if you would rather stay home for a few more years. 

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