Generation Z are better financially prepared than their millennial counterparts. PennyGem’s Natasha Abellard has the story.
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00:00Generation Z are more financially educated and prepared than their millennial counterparts.
00:09Credit Bureau TransUnion took a look at credit profiles of Generation Z members.
00:13According to MarketWatch, Generation Z is defined as those who were born in the year 1995 or after.
00:20TransUnion found that about 66% of Generation Z already have a form of active credit.
00:25And while it's not always recommended, evidence shows that Generation Z is doing better at paying off these debts than millennials did at the same age.
00:33Half of Generation Z with active credit have credit scores of 661 or higher.
00:38This is compared to just 39% of millennials when they reached adulthood.
00:42One of the reasons behind this is that Generation Z has more credit access than millennials did.
00:47Vice President of U.S. Research and Consulting for TransUnion Matt Como said, quote,
00:52As Generation Z have come of age, the regulatory environment actually is much more stable.
00:58And lenders are also now more likely to loan money to non-prime borrowers than they were during the peak of the recession.
01:04As a result, Generation Z has had an easier time building their credit.
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