No sooner did we just get done detailing how the time to build wealth was passing millennials by quickly than we find out that Gen Z is also doing everything they can to prevent themselves from building wealth.
Notably, they’re spending themselves into oblivion, a new Bloomberg report notes.
In fact, Gen Z is spending more now than they were before the pandemic. This is notable because Gen Z has less saved than older Americans, the report notes, meaning the increased spending likely hits their ability to build wealth over the long term harder than it would for other generations.
American Express Co. Chief Executive Officer Steve Squeri said on Friday: “We assumed there was such pent-up demand — not only for travel, but such a pent-up demand for consumer goods — that the U.S. recovery would be like it is right now.”
He continued: “When you look at your millennials and your Gen Zs right now,” they’re at “125% spending of what their pre-Covid levels were in 2019.”
The spending has been a boon for American Express, despite the company believing that corporate travel still won’t return to pre-pandemic levels until 2023.
And to the extent that there is still a small space where the company can offer credit to literally anyone with a shred of a credit score, the company said it was considering a debit card – a risk for a company whose prestige and brand name carry its weight with its customers. – READ MORE
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