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Study says people will believe anything you want if you say it comes from a study.
Roeschke noted that travel-happy Gen Zs don’t necessarily feel optimistic about their finances. Nearly a quarter (24%) said they felt pressured by friends to take trips they can’t afford, according to a study published in May by the financial services company Empower.
Pros of being an introvert is saving money I guess.
That's actually true though. It's significantly cheaper to be at home doing something like reddit than it is to go outside
Going outside is free, doing cool stuff outside with other people can be expensive
It’d be nice to have affordable walkable cities, tax money should go to stuff like parks for adults, Entertaining third spaces . (And taking care of the crackheads ofc lol) , Fund independent businesses instead of letting old McDonald and Walmart be the only stores in town.
Then u basically get the experience of living in a place you’d typically vacation to
But no we need more roads and new cars now bc we gotta be complicated and need a reason to work to live
Independent business doubles down bc they'll typically take up less space and pay more taxes, while also giving more back to the local community (IE Joe's Schmoe's Independent Pizza probably uses a local CPA, local contractors, local suppliers, etc. Whereas Pizza Chain #723 uses corporate accountants, nationally available contractors if possible, and a national supply chain. This means that those secondary businesses would also pay more taxes locally and have more to spend locally.
The irony is that a lot of people who stay in when they are young regret it later in life, and a lot of people who go out when they are young also regret it later in life.
All about balance
I have no regrets for things I did, just adventures and lessons, I do have regrets for the things I didn’t do, like going to E3 for the last one, I had backstage party invitations. My advice; focus on living, whatever that means to you, life is incredibly short, before you know it you will be doing something for the last time in your life.
Maybe in some cases. Most of the self-described introverts I know are shut-ins who spend all of their money on Amazon for the temporary dopamine hit that comes from getting something in the mail.
I got warned in the anime figure sub for explaining that to people who were making their shopping addiction, amount they spent on their waifus, and number of figures they own some sort of elitist thing that it wasn't a good coping strategy for whatever problems they have, and that they were creating a toxic echo chamber encouraging bad habits and shaming everyone not as toxic as them.
lol, or just the pros of being a financially responsible person. Don’t spend money you don’t have on luxury goods such as travel.
Never a bad thing to fiscally solvent by holding back on trips with friends. It sucks you miss out on stuff, but then you have some security to fall back on in case you need auto or home repairs. Nothing like going an extra 10K into debt in the middle of summer when your HVAC fails.
Study says that 89% of statistics are made up
Apparently 96% of all study’s confirm this…
42% is quite high. I hope that's fake.
Wow .... I am ashamed of my generation
Student and consumer loan origination and servicing conglomerate shareholder here: I bet 40% is pretty consistent across generations if they're counting credit cards. People are awful with money and weighing the repercussions of decisions while drinking with friends.
Per the article the OP keeps sourcing, 47% of millennials are planning to pay for vacation via debt, compared to ~30% of gen x and ~20% of boomers. This makes sense as the older the generation, the longer they've had to accumulate wealth as well as benefit from the exponential gains of the market. Gen Z having a lower percent than millennials makes me think we are actually MORE financially cautious than millennials on this front. Overall, just a dumb source targeting Gen Z for clicks.
I'm a millennial and most of the folks in my gen are straight up sub 20 IQ with their money.
They all bitch about not being able to afford things like cars and houses but will spend in excess of 10k on vacations(also usually on CCs) just so they can post pictures about it on Instagram, making it look like they live a luxurious lifestyle.
By contrast my gen z sister and her friends seem way more cautious about what they spend their money on and are actually good at saving.
It's not all your fault. Honestly, you were handicapped. As a Gen X/millennial I must say; the parenting strategies employed on genZ were horrific.
We failed you. For real.
I'm sorry.
I mean not that bad if you just pay it off. I went to Korea and basically maxed out my card of $2k then paid it off a week before the trip.
I am a 37 year old business owner with sound finances and i also pay for my vacation with debt…
It’s called a credit card and we pay back the debt within a couple months after our vacation.
Doesn’t mean Gen Z is irresponsible.
I mean, is that not inherently irresponsible? Kiting credit card debt is a good way to remain in poverty.
The credit card itself isn’t but yeah I feel like not paying it off right away is. I pay for everything I can with a card for the points, but I never carry a balance
Even this is predatory. People spend 12-18% more when they think they are getting "points" or "benefits" out of it, and most of these benefits are just ways to spend more money at discounts.
I just spend on what I need to, but I can understand the slippery slope. I usually don’t think “I have to spend here because I get more points” and I don’t decide where to go based on points/cash-back, I more just use it instead of a debit. But it’s essentially debit because I pay ASAP and see the money leave my checking account ASAP. Essentially, I’d have the same habits if I just used debit, but the yearly credits for travel and the occasional free flight are worth it to me. And if I’m spending more than I normally would because I’m traveling more than I normally would, I’m not really too worried with that. My finances are in good order!
If it’s paid back promptly, you pocket the points and win. If you make the minimum payments and finance the trip at 25% interest, you lost.
Horrible advice. If you cant afford the vacation upright then you should not be going. Now if you were using the credit card to pay but you are going to pay it off that month i totally salute that because its a positive (cashback, good credit report, travelling points etc) but if you are intentionally going to pay it off over months now youre going into bad debt, interest etc
Seriously, these people don't have savings accounts either it seems or why wouldn't they just pay? I don't get this at all.
If you could pay it back in a few months why didn't you just save for a few months instead? Do you not have savings? What if something happens? It's still irresponsible to go on a trip you cannot afford.
You don’t obsessively pay your full credit card bill every week? Damn wonder what that’s like
That is grossly irresponsible.
People want to live man
It's sad that people need to go in debt to live.
It is very sad. Speaking as someone who’s never left their country, barely left their region of their country, I probably would take the debt.
As someone who did travel outside their country I can tell you it wouldn't be worth it if I had to pay it out later as debt... But that's me. You are free to try.
I took a loan out for student loans with astronomical interest without batting an eye. If I want a vacation im gonna take out a loan or put it on a card and pay it off. As long as you pay it down responsibly what does it matter?
I use debt to finance 95% of everything I do.
I just pay it off at before the end of the month and it makes me wealthier.
Yeah I couldn’t tell you the last time I paid for anything with a debit card, I get so much cash back and airline points; not the mention all of the additional benefits like free rental car insurance coverage or trip interruption insurance
Woah I don’t think I get THAT many benefits, working my way up to the more prestigious cards. But yeah for sure if you can handle credit cards they will help you
Edit: Citi double cash card has no annual fee and earns 2% flat cash back, great card if you have credit started
Most cards provide a ton of benefits, way more than what I just listed, basic free credit cards with no annual fees
My wife and I finally started doing this with things like groceries and gas. The cash back adds up faster than you think. We literally never use the debit card anymore.
Exactly lmao wait until the writer's of the source article learn that most people use debt to get a car.
I prefer the term Credmaxxing
How would that even work?
Credit Cards. As a Gen Z this is how I just took mine. Seems plausible enough
yeah, i’m going to California on monday and a lot of my expenses will be put onto next month’s credit card statement lmao
I also don't get the purpose of the article. We are a debt economy. Everything is becoming a subscription, or a license to use a product that you don't actually own, everywhere demands tips instead of actually paying employees a living wage. So is the article meant to just deflect from that and blame the people instead of the system they are living in, or is it capital clutching their pearls that we know the game is rigged and will max out what we can within the system before it self destructs?
Yeah I’m not sure if this is more misleading than anything. Of course I’ll use a credit card for every single trip expense, that’s why I have a travel card. I’ll also pay it off before it accrues interest! But technically debt right?
I’d wager >90% of all purchases are debt. No one uses cash anymore. Dumb article.
I know y’all are picturing this as extravagant trips to Europe and shit, but this could also just mean road trips on student loan money, which doesn’t have to be that expensive. I technically lived off nothing but student loan refunds after tuition was paid for a few years and I went on a road trip in undergrad. So I would fall in this statistic. But I wouldn’t say that trip was terribly irresponsible given that we took as many money saving measures as possible. We drove in a fuel efficient car, stayed in hostels plus one night free with a family friend, and didn’t travel that far, just a couple states away and back.
These people don't understand nuance, so your take is far too reasonable.
Things you probably should not admit to lol
I actually see nothing wrong with this tbh. Just make sure you have a plan to pay it off and in a timely manner. I always put trips on a credit card, give myself a budget for the Airbnb and plan out meals a bit to make sure I know how much I’ll spend when I get there. Usually me and my GF drive out to Joshua tree for 3-4 nights like once a year always less than a grand. Pay it off in 3 months with payments over 350 on my credit card call it a day. We need time to relax. A little financial irresponsibility is okay when you need a mental health break.
I’m with the boomers on this one, specifically Dave Ramsey.
Math is math, and math doesn’t care about your feelings.
Dave is out of touch on many things today, but he’s right about not spending money you don’t have on things you don’t need.
You should acknowledge systemic issues but also work on your individual solution as best you can. You shouldn’t only wait on the world to change.
I’m with you on this one. Like I’m tryna buy a house. Someone called me boring cuz I’m on essentials only right now, but that’s a flex. If you work to increase your pay and take staycations and local trips, you can work towards bigger stuff with less debt. Dave Ramsey is a jerk, but I will say his budgeting app is good
Also, so may people underestimate just how powerful compound investment growth can be when it works in your favor and/or how detrimental compound debt interest can be in the opposite direction.
$20k invested in your 20s is enough to make you a millionaire by retirement.
Conversely $20k in credit card debt can ruin your finances for decades if you do not pay it off aggressively.
While true, this isn't at all a generational issue as it's being framed. Even in the source OP is linking, it shows 47% of millennials are paying for vacation with debt. Yet gen z is in the title.
Yeah this has been going on since they started handing out credit card to anyone (so, since the boomers).
I was expecting we knew better though. We seem to know better about a few things. So I’m a little disappointed.
I think we're going to have another finical crisis related to debt. I don't see this going to end well for our generation.
Depends on how people pay it off is all and where they go. I’ve been finding it more affordable to go somewhere is SEA than going to some places in US or in Europe especially with US hotel prices.
I’m legit seeing people say “who cares about debt” and people who say it’s an illusion. Like y’all are in for a rude awakening
Y'all are taking trips?
I mean, it’s how the rich do it. Only difference is that they have tons of assets to use as leverage
and how much interest they are paying, as they can pay off the debt at a moment's notice whereas Joe Blow credit abuser is going to need six months.
Using a credit card that you have cash in hand to pay off to use for traveling isn't a bad idea, but this still falls under the "using debt" category. Several credit cards have decent travel rewards, and that's still using debt to travel even though you wouldn't be putting yourself in debt. I wonder how much of this 42% plans on doing that vs using a credit card you can't or won't pay off right away.
If they're the ladder, that's dumb as shit
Using afterpay for flights shouldn’t be allowed, full stop.
Although creditors have always been doing shit like this to entrap people. My mom is Gen X and back when credit card companies were setting up stands on college campuses to get young and dumb students, she signed up for one and ended up saddled with debt for years after she graduated. She managed to pay it off shortly before she had me.
It’s more a symptom of being an American, to be honest. Don’t live above your means.
Agreed. Like people think debt is okay, but someone has to pay it and it can hurt your future. I’m tryna buy a house at 23 and people say I’m lame cuz I refuse to spend money on going out to eat and I’m essentials only right now. Their loss
Idk…. 2,000 people of Gen Z isn’t really enough, especially if they asked people from the same area. I think that we would need a much bigger study for this to actually be reliable.
Yeah I read the article 💀 I’m saying I don’t think they surveyed enough people plus they had less Gen z than I thought as it was actually 2,000 Americans of multiple generations. They need more people for this to actually be a good study
Agreed
Nothing like still paying for a vacation 10 years after you went on it
First, I question the validity of statement.
Second, assuming it's true. That's a really bad idea. If you can't afford it, don't go. With that being said, I understand a common argument is "You're only in your 20's going to x once!". It makes more sense to work on a career and achieving that first 100k in investments, then starting to travel in your 30's when you have a solid financial backbone.
I agree. I’m 23 and tryna buy a home cuz it’s cheaper than renting. Like that’s an investment and building equity. Someone called me boring, but I’ll have a home and equity and they’ll be stuck renting. Happiness and fun are what you make it
who the hell is going on these trips??? my friends and i can barely afford rent 😭
“Debt” is a pretty broad term. Anything bought with a credit card is debt.
Is it really that big of a deal if someone charges $3k on a credit card and pays it back? I did it in my 20s multiple times and I’m fine.
I’m actually surprised over 50% are paying cash tbh
Imagine actually having money to go on a trip?
I feel like I’m the only who’d rather stay home and not go on trips, I always got homesick and depressed when going on trips as a kid, even adult
I’m a homebody saving for a home so I get it.
With Credit Card I don’t care. With going into credit card debt your not just a clown, your are the entire circus.
Reminds me of when my ex got mad at me for saying i didnt want to go to London quite yet (We were in Los Angeles). I had like $3k to my name back then in addition to tuition to be paying.
She ended up going with her mom without telling me which stung, because i really did want to go, just only once i could afford it
This is a bad financial choice by a mile. Buy a car in straight cash and then all the savings can pay for vacay
I question the souce of the "study", but assuming it's legit, then this is bad. Debt is just bad.
Saving thousands of dollars isn't easy to pull-off. I'm not surprised.
I mean it depends on where you live and income and individual circumstances
How to make a bad situation worse
I hope not… for those that do this, you can’t blame your circumstances on inflation lol.
Credit cards n payment plans- i have to admit I’ve definitely thrown a train ticket or two on a payment plan but I always try to pay it off early and be diligent about it- it’s not the worst idea it just can get dicey if you’re not responsible about it at least that’s how i feel about it
I always use my American Express Delta Sky Miles card to travel. I want the miles and pay it off at the end of the month. It doesn’t mean I am going into debt to pay for my travel.
The reluctance to take on more debt decreases as your student loan debt increases. In other words:
Sunk cost fallacy. People feel they have already gone so far into debt that "a little more won't hurt."
Make college affordable by strictly regulating for-profit universities and you will solve this entire problem in a heart beat.
And make more debt
I know genz people who have gone on big trips despite drowning in debt from things like student loans.
I guess that's somewhat similar, but idk anyone who has specifically got a loan so they could go on a trip.
my thought is that Pubity from Instagram needs to stop pocket watching
Bold of you to assume I'd come back to pay it
I need everyone here to keep in mind that “using debt to finance their trips” is equivalent to saying they’re using a credit card
As long as everything is paid off in a few months maximum, it's a great way to build credit and get points on the card. If you only make the minimum payments and keep a balance for years, you're setting yourself up for failure in the future.
Call me crazy, but I’m never traveling using my debit card. It’s way easier to resolve fraud and theft issues with a credit card company than a bank. It’s not irresponsible as long as you can pay it off.
I don’t travel on debt, I go into debt while I’m traveling, it is not the same 😭
Study says all humans should die
I hope that’s fake. Don’t wanna hear about predatory lending for leisure spending 10-15 years from now.
Study says I sleep in a basement to finance my trips
How is that different from what the government does every second of the day?
At this rate I’m gonna be using dept to finance my damn groceries
Foolish, but not horribly shocking.
Fine. Then don't complain when your chickens come home to roost.
I book trips with my credit card. I get 5-10% cash back and pay my card off in full every month. It’s like a free 5-10% discount on flights and hotels.
With the onset of affirm, and similiar programs I see nothing wrong with this. I (younger millennial)took a 2.5 week trip to India and used affirm for the plane tickets. Paid business class round trip off over 5 months. Easy. The headline makes it seem like people are going 10’s of thousands into debt every year for vacations.
The only irresponsible thing is doing so if you don’t have money at all to pay it off monthly or are struggling check to check and paying outside your means.
Beautiful world go see it
It's pretty common among all generations, I've heard of lots of people doing it. It's also pretty reckless and stupid, and causes you to lose a lot of money in the long run. If you can't afford a trip, or something else non-essential, just don't buy it. Save up money and only when you can get it without debt you can consider it yours.
If that is true. They will live paycheck to paycheck their whole life.
Fake news, hopefully.
The world runs on a debt based economy. Im supposed to use debt on purchases and then pay it off the build credit score. How is this at all a bad thing (aside from the explicit ramifications of a credit and debt based economic model)?
"Using debt to finance their trips" is so broad as to be meaningless. Travel credit cards that provide bonuses and perks exist for a reason. They are not new.
Rich people use debt to fund trips, boats, homes, etc.
Don’t worry zoomers you’re not the only dumbass generation. Millennials apparently use 401ks like piggy banks…wait I was about to share a source but this source says gen z does that even more than millennials…
how do you use debt to pay anything?
I use my credit card for everything but I never carry a balance.
According to the study it’s 42% of the gen z that is taking a trip this summer, which is 60% in total. That makes it closer to 25% of the Gen Z in the study.
I wonder where that study got its stats, cause I fucking doubt it’s that high
Technically using a travel-oriented credit card is using debt, but you won’t pay interest if you pay it off in full by the next statement. Plus the rewards on those cards are really good.
42% of gen z is financially illiterate.
As long as you pay it off I don't see the problem, if anything it's great for your credit score
Let’s blame this generation for the absolute dumpster fire handed to them. (Sarcasm) When you are 100k+ in debt after college, a few K doesn’t seem like a big deal. Articles/studies like this are meant to take our attention off the real issues, like the massive divide between the rich/poor, unaffordable housing, and the out of control cost of education.
If credit cards count as debt then yes. Like a majority of the population purchases vacations that way and it’s “debt”, now whether or not it’s paid back in a timely manner is another story - but I’m doubtful that’s what stats were used here lol.
They have the worst buying power in decades before they even start and not much hope in the uncertain future. They might as well enjoy life while they can as tomorrow isn't a guarantee.
I plan on using my credit card during an upcoming Chicago trip for food, gas, and souvenirs, but my AirBnB, my tour reservation, and my baseball ticket are already paid for and with cash, and I already have a grand tucked away for those vacation discretionary purchases. Using the credit card is mainly so I can build some cash back and points.
FYI, this is why the older generations don’t give a fuck about your student loans
Financing vacation is a very stupid financial idea.
But it’s consistent with certain characters (that have nothing to do with generations) who whine about being poor, have a we deserve it all now attitude, then complain about the rich corporations and older generations that financially abuse them by only paying market value for their labor.
It’s so prevalent, a fable called ‘the grasshopper and the ant’ has been around for centuries.
Nothing new. GenZ hasn’t ‘discovered’ laziness or either the facts about life’s hard realities about work and pay.
How else am I supposed to pay for it? A cheap vacation still costs like 1000 bucks.
L.
Travel while you can!
I wouldn't be surprised. If the future is so bleak that they can't afford it, they'll borrow to do it if they have to. It's becoming the only way to live and keep up with the Joneses at this point.
I wouldn't be surprised. If the future is so bleak that they can't afford it, they'll borrow to do it if they have to. It's becoming the only way to live and keep up with the Joneses at this point.
Study says let's paint an extra generation with one brush.
People should be able to enjoy themselves once in a while on jobs that both pay them enough and give them the PTO to have a break once in a while.
It's a damn shame so many are taking on debt for a vacation, but I can't blame them.
I’m a millennial and I’ve done that. Had a credit card that offered zero interest for 12 months and I put our whole trip to Cancun on it and just made sure to pay it off before the interest hit. We just made sure we had the extra monthly income to pay the extra bill each month before we booked.
I mean my credit card is my savior so I understand why people be doing this
We all get baited so hard. Wake up
You either never have fun or you have your vacations on payment plans. I would worry too much about the debt so I just never have fun. An excellent world our grandparents and great grandparents created for us, isn’t it?
They'll put this in the news cause they don't want Americans to know what's out there. The moment we do, we'll stop investing in America and move our full life's out the country.
Financing a vacation is the most gen z thing I’ve ever heard
Well they can't use equity can they?
I can beluga it, where I work people have been spending massive amounts of money this year ajd irs a swipe of that credit card.
Might do this then kill myself if all else fails tbh
Meanwhile corporations:
Out of curiosity, how many of you kids are even going on trips or taking vacations? From what I hear, everyone is debating between buying groceries and buying a bus pass or paying for gas. This has to be a study of people planning trips and a bad headline.
If so, good for them. You're only young once. If you can travel right now at your age I highly suggest doing so before you have more responsibilities such as kids and whatnot.
You never know that something could happen to you before you "make enough money" to travel and now you can't safely do it.
YOLO
Idk how true this is but it's believable that there's at least some really small group of people doing this. Either way it's stupid, Stupid truth or stupid lie.
I mean I guess? I like to have trips paid for ahead of time, but ofc I’m going to use a credit card to put the down payments for rentals or the hotel on. Rarely will I ever go beyond budget and spend beyond my means, but sometimes shit happens and you pay it back over time like anyone would. Not super sure what they mean by using debt to finance their trips, like how much in the red we talking
The economy is functioning exactly as intended. Marx predicted this kind of debt economy all the way back in the 1800's. Its fucking eary going back and reading Das Capital and seeing just how much he got right over 100 years ago.
Either study is fake or 42% of Gen Z are complete idiots.
Were the subjects of this study all fucking idiots? Because yea people do this but only if they have no financial literacy
The 42% are the type of people you see on Caleb Hammers show
If you aren't going to be able to afford a reasonable, comfortable home after 15 years of full time work, I see no problem with this.
Fucking stupid. My parents did this and it fucked their finances for years. DONT FUCKING DO IT
its wild. But at the same time I see that gen z is saving more in their 401k. I think it is true of any generation that a large portion are going to be stupid with their money
https://finance.yahoo.com/news/gen-z-makes-bigger-401-195813556.html
It’s ok to take on debt if you have a tangible plan to pay it back
I mean my parents did it.
I'd rather go and pay a card off then not go and die thinking I should have
uh thoughts? Who in their right mind thinks this is a good way to start off your adult life?!?!?!? lol
Capitalist psy-op trying to extract more debt from the working class.
If I owe someone $1,000 that's my problem.
If I owe someone $30,000 that's their problem. 🧠
What study .. what polls/surveys .. what targeted audience are they referring to?! Not only this study but all/any of them !!!
& Why am I left outta them 😩😂💯
Yeah that’s dumb, you shouldn’t do that unless you have a specific plan to pay that shit back.
Our filthy rich society has ensured that we cannot afford it. So keep your head down and get back to work peasant.
People don’t know money anymore nor understand it
Not gen z, but my dream is to have an idea oh when I’m going to die so I can give away or sell everything I own and then rack up a ton of debt to screw the system over.
Millennial here. Taking out a loan was the only way I could go on a vacation.
After saving money up only to have some sort of emergency happen that spends it all for over a decade I said fuck it took a 3 year loan out and had an awesome time.
Im supposed to be able to go on trips?
Yeah I wouldn’t trust a survey group of 2,000 made by a bank
Use credit cards as cash for points and rewards. If you can’t pay off a trip on the spot with actual Cash, do not finance it with debt.
Credit *
I hope they're using a credit card to take advantage of cash back and are paying it off before the balance is due. Otherwise, it's completely irresponsible.
This could just be someone planning on using a credit card that they will pay off at the end of the month but journalists love using sensationalist clickbait titles
i doult it real but even if it is who gives a fuck
Why not? It’s not like there is anything to save for anyway. Might as well have a little fun before it all burns down.
No? The hell is this talking about
Don’t do it. Credit cards are bad. Not the only way to build credit.
trips?
I only take out debt for growth. Never want to take it out for anything that isn’t an investment
I don’t take debt
..to what extent? bfs card lets him borrow like 200$ and pay it over time.. so like maybe that but not like.. 8k or smthn
This is probably true and is exactly how Banks and Governments want it to be.
I think this supports the argument that the economy isn’t as bad for our generation as we like to make it seem it is. In general, we just value and prioritize things that are poor financial decisions.
study says 42% of respondents come from USA
are they putting that shit on credit or taking a fucking loan out on that. Cause those are 2 different things
David Ramsey has entered the chat.
Kinda yeah. I my plans are to pay off a credit card so I can use that credit card for my plane ticket. Might as well get rewards points instead of just emptying my savings straight into the ticket
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