During the Corona pandemic, many young people were locked up and bought their quality of life with credit. And this is now negatively affecting their situation, according to experts.
Generation Z is the generation facing the highest prices for basic necessities, the highest housing costs, and the most debt compared to other groups. And the negative consequences are expected to have a much stronger impact than the global financial crisis of the late 2000s.
Because Gen Z is said to have bought a quality of life that is now really becoming expensive for them. This is mainly due to rising interest rates and ongoing inflation.
Gen Z took advantage of low interest rates during Corona and is now being caught up by inflation
What is the cause of the problems? Economists point out, for instance, our Spanish colleagues from 3djuegos.com, that the key to all problems is said to be the Corona pandemic:
Many young people were locked up at home during this time and were significantly restricted in their personal development by the pandemic. Consequently, many young people began to spend and invest a lot of money because banks lowered interest rates and made it easier to take out loans. And this is now having negative effects.
According to Jimmie Lenz, a professor of finance at Duke University, many negative developments are now emerging because Generation Z “will grow up in a time of rising inflation and rising interest rates, and that will affect them.”
What is the problem? The high quality of life that many have bought with very cheap loans is now becoming a problem because interest rates have been rising sharply for months. And the numbers don’t lie. Looking at the U.S., when one examines the financial situation of young people there, one sees that one in seven from Generation Z has overdrafted their credit card, and 31% spend more on their rent. And the current situation only continues to drive up rents and living costs.
The quality of life that was bought years ago with cheap loans is now becoming very expensive. And there is no end in sight to the rising prices.
Investing money as Gen Z: When it comes to money, Generation Z has discovered a very own way to invest. Gen Z invests their money by relying on tarot and astrology and wants to be very successful with it. TikTokers show how much money they earn with it. But experts warn against such tricks: Gen Z uses a strange trick to invest money: They rely on astrology and tarot cards
