Money
Why Gen Z is Approaching Money Differently Than Other Generations
Every generation has their own unique approach to money and personal finance.
Millennials, for example, found the journey to adulthood riddled with obstacles such as stagnating wage growth and uncertain economic conditions. These challenges, combined with other generational circumstances, helped to shape the group’s spending habits and attitudes towards money and debt.
Along this journey, Millennials ended up making their fair share of financial mistakes – but interestingly, evidence is now mounting that the next generational cohort (Gen Z) is already learning from their elders.
A New Approach to Money
Today’s infographic comes to us from Rave Reviews and it shows how Gen Z is taking a more pragmatic approach to money.
Gen Z saw some of their older friends take on massive amounts of debt, while also struggling to find well-paying jobs.
As a result, this new generation (born 1997 and onwards) is taking a much more pragmatic approach to the world of personal finance. Gen Zers generally want to secure well-paying and stable jobs, and to grow their savings rather than spending money that they don’t have.
School and Work
For Generation Z, an education is often seen as an end to a financial means. In other words, college is an opportunity to build a set of skills that will be valuable to employers, ensuring a stable career.
That’s why 88% of the first Gen Z grad class in 2017 ended up choosing their majors with job availability in mind.
Recent Gen Z grads are willing to put in the work, as well:
- 75% are willing to relocate to another state for a job offer
- 58% are willing to work evenings and weekends
- 78% have completed an internship or apprenticeship
- 77% earn extra money through freelance work, a part-time job, or an earned allowance
- 35% already own their own business, or are planning to start one in the future
While the Gen Z outlook on school and work is a defining factor in their attitude towards personal finance, how they save and spend money is also making a difference.
Saving and Spending
A whopping 89% of Gen Zers say planning for their financial future makes them feel empowered, while 64% have already begun researching the topic of financial planning.
With dollars and cents on their minds, Gen Z is a more frugal and fiscally responsible group:
- 72% say that cost is most important factor when making a purchase
- 47% use their phones in-store to check prices and ask family or friends for advice
- 66% plan to attend college in-state to save on tuition
As Gen Z enters the professional workforce and starts investing their savings, it will be interesting to see what comes out of this frugal and practical approach to money.
Money
How Debt-to-GDP Ratios Have Changed Since 2000
See how much the debt-to-GDP ratios of advanced economies have grown (or shrank) since the year 2000.
How Debt-to-GDP Ratios Have Changed Since 2000
This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.
Government debt levels have grown in most parts of the world since the 2008 financial crisis, and even more so after the COVID-19 pandemic.
To gain perspective on this long-term trend, we’ve visualized the debt-to-GDP ratios of advanced economies, as of 2000 and 2024 (estimated). All figures were sourced from the IMF’s World Economic Outlook.
Data and Highlights
The data we used to create this graphic is listed in the table below. “Government gross debt” consists of all liabilities that require payment(s) of interest and/or principal in the future.
Country | 2000 (%) | 2024 (%) | Change (pp) |
---|---|---|---|
🇯🇵 Japan | 135.6 | 251.9 | +116.3 |
🇸🇬 Singapore | 82.3 | 168.3 | +86.0 |
🇺🇸 United States | 55.6 | 126.9 | +71.3 |
🇬🇧 United Kingdom | 36.6 | 105.9 | +69.3 |
🇬🇷 Greece | 104.9 | 160.2 | +55.3 |
🇫🇷 France | 58.9 | 110.5 | +51.6 |
🇵🇹 Portugal | 54.2 | 104.0 | +49.8 |
🇪🇸 Spain | 57.8 | 104.7 | +46.9 |
🇸🇮 Slovenia | 25.9 | 66.5 | +40.6 |
🇫🇮 Finland | 42.4 | 76.5 | +34.1 |
🇭🇷 Croatia | 35.4 | 61.8 | +26.4 |
🇨🇦 Canada | 80.4 | 103.3 | +22.9 |
🇨🇾 Cyprus | 56.0 | 70.9 | +14.9 |
🇦🇹 Austria | 65.7 | 74.0 | +8.3 |
🇸🇰 Slovak Republic | 50.5 | 56.5 | +6.0 |
🇩🇪 Germany | 59.3 | 64.0 | +4.7 |
🇧🇪 Belgium | 109.6 | 106.8 | -2.8 |
🇮🇱 Israel | 77.4 | 56.8 | -20.6 |
🇮🇸 Iceland | 75.8 | 54.6 | -21.2 |
The debt-to-GDP ratio indicates how much a country owes compared to the size of its economy, reflecting its ability to manage and repay debts. Percentage point (pp) changes shown above indicate the increase or decrease of these ratios.
Countries with the Biggest Increases
Japan (+116 pp), Singapore (+86 pp), and the U.S. (+71 pp) have grown their debt as a percentage of GDP the most since the year 2000.
All three of these countries have stable, well-developed economies, so it’s unlikely that any of them will default on their growing debts. With that said, higher government debt leads to increased interest payments, which in turn can diminish available funds for future government budgets.
This is a rising issue in the U.S., where annual interest payments on the national debt have surpassed $1 trillion for the first time ever.
Only 3 Countries Saw Declines
Among this list of advanced economies, Belgium (-2.8 pp), Iceland (-21.2 pp), and Israel (-20.6 pp) were the only countries that decreased their debt-to-GDP ratio since the year 2000.
According to Fitch Ratings, Iceland’s debt ratio has decreased due to strong GDP growth and the use of its cash deposits to pay down upcoming maturities.
See More Debt Graphics from Visual Capitalist
Curious to see which countries have the most government debt in dollars? Check out this graphic that breaks down $97 trillion in debt as of 2023.
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