The Gen Z Debt Crisis Explained. Are They Just Bad with Money or Did We Hand Them a Broken Piggy Bank?
- Nov 22, 2025
- 4 min read
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Headlines about the younger generation and their massive debt are common. It's a huge topic, and many people have an opinion. The most popular one is that it's all their fault. They are often described as financially reckless. The stereotype is of a generation that can't stop spending, constantly one click away from ordering another meal or buying more digital items. It's a modern version of the 'cut back on lattes' lecture. It's a convenient story and makes for a catchy headline. But is it the real story?
It's easy to see where this idea comes from. This generation grew up with money as an abstract concept, not as physical cash in a wallet but as a number on a screen. With one-click buys, seamless payment apps, and digital "coin packs" for $1.99, spending is incredibly easy. It's frictionless. When you don't have to physically hand over a twenty-dollar bill, it may not feel like you're spending real money. But this isn't the whole story.
Is the problem, then, a generation with impulse control issues? Not exactly. Blaming their spending habits alone overlooks the bigger picture. The real issue is a combination of a shaky job market, sky-high living costs, and an economic system that feels stacked against them. They feel like they're failing, but the truth is the game itself might be broken. When you look at the one massive financial anchor tied around their ankles, it becomes clear the coffee was never the main problem...
