Rethinking Money: How Gen Z Is Redefining Financial Tools
The article Why Gen Z Is Breaking Up With Credit Cards explores how younger consumers are rethinking traditional financial tools. Many in this generation find credit cards stressful and confusing, signaling a shift in how people approach money. The except is as follows:
“The study done by Morning Consult found that 68% of Gen Z respondents say credit card bills cause them stress and anxiety and more than half admitted that credit cards "give them the ick." (Catmull, 2025).
"Credit cards give Gen Z the 'ick'—not just because of high interest rates and confusing terms, but because they feel outdated and anxiety-inducing," said Lindsay Bryan-Podvin, Cash App Afterpay's financial therapist. “They want clarity, structure and control in real time, which is why they're embracing alternative tools like debit cards and BNPL options that offer greater transparency and flexibility.” (Catmull, 2025).
Gen Z’s relationship with money is shifting. Unlike previous generations, they’re not simply accepting credit cards as a necessary part of adulthood, they’re actively questioning whether these tools make sense for them. Describing credit cards as giving them the “ick” highlights their desire for transparency, control, and real-time clarity in financial tools. It’s less about avoiding debt and more about managing stress and making empowering financial decisions. Alternatives like debit cards and Buy Now, Pay Later (BNPL) provide immediate control, aligning with this generation’s need for flexibility and clarity. This reflects a broader cultural shift: Gen Z evaluates not just what financial tools do, but how they make them feel. Financial institutions can no longer rely solely on traditional products. They must design experiences that prioritize clarity, trust, and mental well-being. Brands that succeed in meeting these needs can build loyalty and credibility that goes far beyond interest rates or reward points.
References.
Australia, C. (2024). A Laptop Computer Sitting On Top Of a Table [Photography]. Unsplash. https://unsplash.com/photos/a-laptop-computer-sitting-on-top-of-a-table-51UkMs38ixg
Catmull, J. (2025, April 26). Why gen Z is breaking up with credit cards. Forbes. https://www.forbes.com/sites/jaimecatmull/2025/04/24/why-gen-z-is-breaking-up-with-credit-cards/
Based on Why Gen Z Is Breaking Up With Credit Cards (~40%), combined with my own reflections on design, banking, and generational financial behavior (~40%), and text synthesized, structured, and edited with the assistance of AI (~20%). All interpretations remain the responsibility of the author.
