The cost of living has skyrocketed over the last few years, impacting everything from the price of transportation and housing to the cost of everyday goods and services, including how much people tip. Now, there’s a new expense creeping up on consumers: fees – and they’re pricing many out of events and live entertainment.  

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, 56% of Americans say the high price of fees, including service fees and processing fees, have held them back from attending events, such as sporting events or live concerts – the result of a rising trend known as “fee creep.” For the purposes of this study, fee creep is defined as a rise in the number of fees associated with activities such as concert tickets, movies, dining out and more. 

Over the last year, 80% of respondents say they’ve observed a somewhat-to-significant increase in the number of fees associated with ticket prices for entertainment events, and it’s fueling trust issues among consumers. More than half (56%) of Americans say they’ve lost trust in ticketing companies because of the hidden fees they charge. And, it’s not just ticketing companies who are spiking fees. Americans have noticed fee creep across a number of activities, including dining out (56%), hotels and lodging (48%), movie theaters (41%), theme parks (33%) and even rental cars (25%).

Regardless, the majority of people (72%) are willing to spend money on additional fees for a single event or activity, but few (6%) are willing to spend more than $50. Instead, more than half of respondents (55%) say they’d be willing to pay up to $30 in fees for an event. Despite an increase in the number of fees, younger generations don’t see them as a big barrier to entry. According to the study, Gen Z and millennials are most willing to fork over cash for additional fees, 90% and 85% respectively. That’s compared to 33% of Gen X and 45% of boomers+ who are unwilling to pay for fees.

Gen Z and millennials’ acceptance of fees could have something to do with the pressure they feel to participate in live events or experiences. One-third of Gen Z and 31% of millennials reported that they feel pressure to spend money they don’t have on live events or experiences due to social media. This pressure is driving younger generations to spend whatever it takes to attend live entertainment events. According to the study, one third of Gen Z and 31% of millennials say they’re willing to spend whatever it takes to attend live entertainment events. Some have even taken extreme actions to pay their way. 

Gen Z and millennials have gone to great lengths to afford tickets to live entertainment, including cutting back on dining out (35% of Gen Z and 33% of millennials), borrowing money from savings (30% of Gen Z and 21% of millennials), taking on credit card debt (21% of Gen Z and 28% of millennials), and even sacrificing food or necessities (19% of Gen Z and 14% of millennials). 

“Over the last few years, we’ve seen a rise in prices for most things and, while the sticker shock has worn off for many people, others are digging into increased prices and noticing significant increases in fees,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Similar to tipflation, consumers have started to notice an uptick in the number and size of fees associated with their transactions, which is eating into their budgets and making it difficult for them to enjoy the same level of activity as they’re used to. If you’re someone who is experiencing fee fatigue, but still willing to spend whatever it takes to enjoy the experience, it’s important to check in and assess your spending to determine what you can reasonably afford and if it fits into your budget. If it doesn’t, consider saving up for the activity or making room elsewhere in your budget to make it happen.” 

Methodology

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between September 1, 2023 and September 4, 2023 among 1,006 adults ages 18 and older.

Gen Z is racking up credit card debt at a faster rate than previous generations, with balances increasing 4.23% from January to March 2023. This comes at a time when American credit card balances hit a record $1 trillion, according to a report from the Federal Reserve Bank of New York. While some young folks are spending out of necessity, others are using credit cards to rack up points and rewards – and it’s fueling their travel plans. 

According to a study conducted by Qualtrics on behalf of Intuit Credit Karma, 89% of Gen Z have at least one credit card. Of those, 75% have a rewards card, which many see as a symbol of their status (43%), giving them access to discounted travel and hotel stays, as well as gym memberships and ridesharing apps. To achieve status, 59% of Gen Z respondents with rewards cards pay an annual fee with the majority paying as much as $300 a year for their card (71%). 

And they’re not letting their rewards go to waste 

More than half of Gen Z (54%) rely on credit card points and rewards to pay for travel expenses. In fact, these rewards fueled summer travel for more than half of Gen Z rewards card holders. According to the study, 56% of Gen Z say they were able to travel this summer because of the points and rewards earned from their credit cards. This isn’t an isolated event, either. 45% of Gen Z respondents with rewards cards plan to rely on credit card rewards and points to pay for the upcoming holiday travel season and another 35% say they wouldn’t be able to travel in the next year without using their points and rewards. 

In addition to travel, Gen Z respondents who have at least one rewards card say they’ve been able to get hotel or lodging (40%), restaurant tabs (32%), gym memberships (30%) and airport entry services (22%) for free or at a discount thanks to the rewards and points earned from their credit cards.

They must do research…

More than three quarters of Gen Z card holders (77%) say they do research before applying for a new credit card and many turn to online platforms, including social media to do so. According to the study, one-third of Gen Z respondents use financial apps and websites, like Credit Karma, to learn about rewards cards. Another 30% say they learn about rewards credit cards on TikTok – the highest of any other generation. Offline, Gen Z looks to their friends and family (33%) for information on the best rewards cards. 

When researching, 55% of Gen Z say rewards are their top priority when considering which credit card to sign up for. Rewards are so important to Gen Z that 68% would switch credit cards if another card offered better rewards, such as airline miles, sign up bonus or cash back. When shopping for a new rewards card Gen Z prioritizes cards that offer cash back on necessities, like groceries (60%) and gas (40%). 

Beyond general research, Gen Z are seeking out credit card “hacks”

Gen Z respondents are not just using rewards cards for everyday purchases, they’re using credit card “hacks” to maximize the benefits of their rewards cards. Nearly half of Gen Z respondents (49%) say they use “hacks” to maximize their points and rewards and 51% of rewards card holders say they use multiple rewards cards to maximize the points and rewards earned. Of Gen Z respondents who have a rewards card, 41% use their rewards card for all or most of their purchases while another 45% use their rewards card more sparingly for specific purchases.   

To learn how to optimize their credit card points and rewards Gen Z rewards card holders turn to YouTube (45%) or other social media sites like Instagram, Facebook or X (28%) and TikTok (27%). 

And still, they have regrets 

Despite the benefits associated with rewards cards, Gen Z was one of the generations most likely to express feelings of regret after taking out a rewards card (28%), second only to millennials (31%). This could have something to do with mismanagement of their rewards card. According to the study, Gen Z was two times more likely than Gen X and Boomers+ to admit to having put more charges on their credit card than they could afford just to get the rewards (40% compared to 19% of Gen X and 11% of boomers+). 

“Rewards cards can be a great tool for consumers to optimize their spending, but it can be easy to get carried away,” said Courtney Alev, consumer financial advocate at Credit Karma. “Rewards cards provide everything from cash back to premium discounts and luxury experiences. However, in order to get the most value out of rewards cards, they need to be used responsibly. This is especially important for Gen Z who are earlier in their financial journey and likely still working to establish and build credit. Make sure you’re not spending money on things you don’t truly need, just for the thrill of earning more rewards. And at the end of the day, if you’re not paying your credit card bill in full and on time, the rewards you’re earning come at a cost – whatever interest is accrued on your outstanding balance or fees paid. If you find yourself spending more than you can afford to pay back, consider switching back to cash or debit until your credit card balances are in check.”   

Methodology

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between August 18, 2023 and August 23, 2023  among 1,003 adults ages 18 and older.

Since the launch of ChatGPT, generative AI (GenAI) has taken the world by storm. Early adopters have used the tool to generate everything from music and art to breakup texts, emails and performance reviews, demonstrating there’s seemingly nothing the human-like tool can’t do. Now, as companies work to implement GenAI into their products, many await the more practical use cases of the technology and how it can be used to solve real world problems. And, if it’s up to consumers, they want to use it for their finances. 

That is according to a new study conducted by Qualtrics on behalf of Intuit Credit Karma. According to the study, 40% of Americans think GenAI could help most with their finances, that’s more than food and nutrition (27%), health (27%) and workplace productivity (21%). It makes sense consumers would lean on GenAI to help manage their money considering 38% have unanswered questions about how to manage their finances. To minimize financial stress, 43% of Americans say they would be willing to use GenAI to manage their finances if it would eliminate their money problems. This number jumps to 57% among those who have used GenAI before. 

When asked what areas of their finances consumers would use GenAI’s help, they say they’d use it to pay down debt (27%), budget and manage expenses (26%), save for retirement and optimize savings (25%). Beyond that, consumers are drawn to other aspects of GenAI, including being able to have their financial questions answered around the clock (44%) and being able to instantly understand their complete financial profile across multiple accounts and investments (30%). These are things human financial advisors lack today, according to respondents.

Not all Americans have used GenAI, but many have heard of it. Regardless, there’s an appetite for the technology among both groups with many believing it could help them better manage their money. According to the study, more than two thirds of Americans (69%) have heard of GenAI, but just over a quarter (26%) have used it before. Of those who have not used the technology, 34% say they are likely to use it in the future. Regardless of if they’ve used the technology or not, a quarter of Americans say they would trust GenAI to help them manage their finances. This number jumps to 45% for those who have used GenAI before. What’s more, more than one-third of Americans (34%) who have used GenAI say they would trust GenAI more than humans to manage their finances. 

When it comes to consumers’ experience using GenAI, 69% say the information generated by AI was accurate and 52% say it was very helpful or extremely helpful. On the flip side, some consumers have faced issues with the generated content, including a lack of personalization (27%), inconsistent quality (26%) and redundancy (23%). This emphasizes the importance of refining the technology to build trust with consumers. 

To achieve this, consumers are looking to institutions they trust, such as banks (30%), tech companies (21%) and personal finance apps they already use (20%), to provide a GenAI-powered financial management tool. Their top priorities when it comes to establishing trust with GenAI include security and privacy – meaning the technology is regulated and secure and their personal information is protected – (37%), as well as making sure the information and data sources are credible and accurate (35%) and that the information used to generate recommendations is based on their individual finances (26%). 

“It’s encouraging to hear consumers are curious about the potential of Generative AI to help them make financial progress and we’re excited about the prospect of leveraging this revolutionary technology to help our more than 120 million members in the U.S. solve one of their hardest problems – their finances,” said Supriya Gupta, vice president of product at Credit Karma. “Trusted institutions like banks, fintechs and technology companies have an opportunity to deliver on their promise of helping people make meaningful financial progress through highly personalized, AI-generated experiences. Together, with Intuit, who has been invested in transforming into an AI expert platform for the last five years, we’re uniquely positioned to deliver on this vision.”

Methodology:

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between July 6, 2023 and July 7, 2023 among 1,004 adults ages 18 and older.

The Supreme Court’s decision to strike down President Biden’s plan to forgive a portion of federal student loan debt for nearly 37 million borrowers means those borrowers will need to resume monthly payments after a 3+ year hiatus. This is grim news for American student loan borrowers who don’t feel confident in their ability to juggle student loan payments, and at a time when credit card debt is at an all-time high in the United States. 

According to a study conducted by The Harris Poll on behalf of Intuit Credit Karma among 2,059 U.S. adults ages 18+, nearly 1 in 5 Americans (18%) have outstanding federal student loan debt, either for themselves or for a child(ren). Black Americans are more likely to report having outstanding federal student loan debt (30%) compared to Hispanic (19%) and White (15%) Americans. 

Not only do federal student loan borrowers have to grapple with how they’re going to afford to resume payments come October, but three quarters of them (75%) are also on the hook for providing financial support to their families, whether that be paying for their food, clothes, rent or other bills. October will also mark the first time that more than a third (36%) of borrowers have ever had to make payments toward their federal student loans. Federal student loan borrowers with an annual household income (HHI) of less than $50K are almost twice as likely as those with an HHI of $100K+ to say they have not yet made any payments on their federal student loans (48% vs. 25%).  

All of these factors at play beg the question: is the return on investment (ROI) for higher education in America worth the expense? For more than 2 in 5 federal student loan borrowers, the answer is no, as 44% say it’s not worth the expense. Even more concerning is the fact that more than half of federal student loan borrowers (58%) say that the thought of resuming payments on their student loans negatively impacts their mental health. 

Borrowers risk slipping backwards once payments resume 

More than half of federal student loan borrowers (56%), including 57% of those who provide financial support to family, say they will need to choose between making their student loan payments or paying for necessities (e.g. rent, bills, groceries), as they cannot afford both. Borrowers with an annual HHI of less than $50K are significantly more likely than those with an annual HHI of $100K+ to say they will need to choose between making their student loan payments or paying for necessities (68% vs. 45%). 

Having to account for an increase in expenses once payments resume is one thing, but even with the extended forbearance period, nearly 2 in 5 federal student loan borrowers (37%) say they have not saved money in anticipation of resuming their payments. That could have something to do with the fact that more than half (53%) of federal student loan borrowers say they are currently struggling to pay other bills (e.g. auto loan, mortgage, credit card), even though they have not been making their student loan payments. 

Given the financial struggles many borrowers are facing today, it is no surprise that more than 2 in 5 federal student loan borrowers (45%) say they expect to go delinquent on their student loan payments once forbearance ends. Borrowers with an annual HHI of less than $50K are significantly more likely than those with an annual HHI of $100K+ to say they expect to go delinquent (53% vs. 36%). 

How are borrowers preparing for payments to resume? 

A vast majority of federal student loan borrowers who will resume payments come October (90%) say they will need to make changes to be able to afford their monthly payments for their student loans. Here’s a breakdown of the changes they will need to make: 

Borrowers are juggling various debt obligations 

As borrowers make lifestyle changes to better position themselves to be able to afford their monthly federal student loan payments, they’re also having to pick and choose which debt obligations to prioritize. The good news is, a majority of borrowers who will resume payments in October (72%) are prioritizing their federal student loan payments over other types of debt. The bad news is that other debt payments – some with very high interest rates – could fall to the wayside, with the potential to negatively impact their financial standing. It’s worth noting that the Biden administration put in place a one-year leniency program, which temporarily eliminates some of the typical consequences that come with missing payments (e.g. won’t be considered delinquent if payments are missed). 

Among federal student loan borrowers who will resume payments come October, 2 in 5 (40%) say paying down credit card debt will take lower priority compared to making student loan payments. Other debts borrowers plan to deprioritize over student loan payments, include: medical debt (27%), personal loans (21%), auto loans (20%), buy now, pay later debt (14%), mortgage debt (13%). 

On the flip side, 18% of federal student loan borrowers who will resume payments come October say their student loan payments will take lowest priority over other debt obligations. 

Student loan forbearance helped borrowers make financial progress 

One thing we likely know to be true is that during the pandemic, many Americans were able to make progress in certain areas of their financial lives because of the various relief efforts in play. In fact, more than half (53%) of federal student loan borrowers say they were better positioned financially to make payments toward their student loans during the pandemic than they are now. 

The past 3+ years of federal student loan forbearance gave American borrowers the opportunity to make financial progress in other areas of their lives. Here’s a breakdown of what borrowers who paused federal student loan payments were able to do as a result of those payments being paused: 

“Federal student loan borrowers will face a new normal as payments are set to resume after a 3+ year hiatus,” said Courtney Alev, consumer financial advocate at Credit Karma. “While many borrowers were able to get ahead in other areas of their finances during forbearance, others struggled to stay on top of other bills and expenses, likely a result of inflation and today’s high cost of living. We recommend borrowers review their cash flow over the last few months to see if they have money left over to put toward their payments. If that’s not the case, they should look for areas they might be able to cut back on their spending. They can also visit studentaid.gov to learn how they can potentially lower their monthly payments by applying for an income-driven repayment (IDR) plan and/or the Department of Education’s newest SAVE plan.” 

Methodology: 

This survey was conducted online within the United States by The Harris Poll on behalf of Intuit Credit Karma from July 25-27, 2023 among 2,059 U.S. adults ages 18 and older, among whom 394 currently have federal student loan debt. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com. 

Talking about money is often considered taboo. This leads many people, including couples, to avoid the topic altogether, which can put a strain on their relationships. This is especially true for younger generations who are just starting out on their financial journey and potentially still on the market. As they weed through potential partners, many are prioritizing aligned financial values – and not settling for less. 

According to a study conducted by Qualtrics on behalf of Intuit Credit Karma, more than a third of Gen Z and millennials say they would break up with their partner if they did not share the same money values as them (38% and 36%, respectively). Yet, most young couples think it’s okay to leave talking about finances until they’ve reached a major milestone in their relationship, like moving in together (25% of Gen Z and 29% of millennials) or getting engaged or married (21% of Gen Z and 12% of millennials). This lack of communication has led many to reconsider their relationships and, in some cases, end them altogether.

Roughly one-third of Gen Z and millennial respondents (33% and 31% respectively) say they have ended a relationship over finances – and, young folks aren’t the only ones ending relationships over money. According to the study, a quarter of Gen X respondents have ended a relationship because they couldn’t agree on finances, along with 11% of boomers+. Disagreements about money tend to surface in arguments, which can put unnecessary strain on the relationship. 

In fact, more than half of Gen Z and millennials (56% and 61% respectively) say they fight about money in their romantic relationships. More than 40% of Gen Z and millennials say they fight about money on a monthly basis (41% and 42% respectively). And, for millennial couples, money is the biggest source of arguments in their relationships (16%). That’s above not being present or being on a smartphone (13%), spending time together (12%), chores and intimacy/ sex (11%). 

Seeking: financial alignment 

To get ahead of money issues in relationships, some young folks are doing their research before they get involved with a partner while others are keeping a close eye out for financial red flags. According to the study, 35% of Gen Z and 25% of millennials say, when they’re dating someone, they research their job to gauge how much money they make. This is likely done to ensure they’re lifestyles would align before getting too involved. 

Another method of sussing out a person’s financial behaviors is to look for financial red flags, which differ across generations. Gen Z respondents say their biggest financial red flag is when someone is unwilling to split expenses and expects them to pay for everything (16%). This is probably triggering for Gen Z who are just starting out and struggling to find their financial footing. Meanwhile, millennials say reckless spending is their biggest red flag (17%).

So, should couples split? 

Despite money driving a wedge in some relationships, many married young couples find themselves stuck in their circumstances for financial reasons. According to the study, roughly a quarter of Gen Z and millennials would stay in an unhappy marriage to avoid the cost of divorce (24% and 25%, respectively). Another 30% or more say they would stay in an unhappy marriage if they were financially dependent on their partner (31% of Gen Z and 32% of millennials).  

“Money is a deeply personal topic for a lot of people, but it’s important to develop a language around money that you feel comfortable with – especially when it comes to managing money in your relationships,” said Courtney Alev, consumer financial advocate at Credit Karma. “If you’re someone who gets uncomfortable talking about money, remember you’re not alone. Knowing you’re likely not the only person feeling that way may give you a little more comfort when having the conversation. Additionally, in a world where so many of our interactions take place digitally, including how we spend and transfer money, it’s important to make time for face to face interactions with your partner about finances. If you’re new to this, start small. Having small conversations about money can lead to big changes in your relationship. For example, if you want to plan a trip together, consider scheduling time to sit down and discuss your budget, what financial steps need to be achieved before you travel, and the right timeline to reach your desired destination.” 

Methodology

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between June 7, 2023 and June 9, 2023 among 1,005 adults ages 18 and older.

Homeowners and prospective homebuyers are left on the sidelines as mortgage rates near the highest point in more than two decades. To combat rising rates, many existing homeowners are willing to consider staying put – perhaps especially those who were able to secure record low mortgage rates during the pandemic. Right now, nearly three quarters of mortgage borrowers (72%) have rates below 4% (source), which is significantly lower than where mortgage rates stand today. 

According to a new study conducted by The Harris Poll on behalf of Intuit Credit Karma among  more than 1,400 U.S. homeowners two thirds (67%) of U.S. homeowners who plan to sell in the next three years say they would be willing to delay their plans until after mortgage rates go down, with 26% say they would be very willing to delay their plans. This trend was exaggerated among millennial (ages 27-42) homeowners who plan to sell their homes in the next three years – 79% say they’d delay their plans until rates go down with 32% saying they’d be very willing to wait out high interest rates. 

Would you rather…? 

Homeowners are willing to go to great lengths to avoid selling in this market, especially if it would mean taking on a mortgage at today’s rates. Aside from delaying their plans to sell, some homeowners are willing to stay in homes they’ve outgrown or even rent out their current home and move into more affordable housing temporarily. Here’s a look at the lengths homeowners would go to delay their plans to sell:  

Millennials planning  to sell their homes in the next three years are particularly avoidant in today’s high-interest environment. Among those who plan to sell in the next three years, nearly a third (32%) say they would continue living in a smaller space than needed to avoid having a high mortgage rate on their new home. Another 3 in 10 (29%) would be willing to rent their current home and move to a more affordable rental temporarily. Other actions they’d be willing to take include putting off having children because their current home is too small (24%), not relocating to take a higher paying job (20%), continuing to live with a spouse/partner after splitting up (17%), and keeping their child(ren) in an undesirable school district (14%). 

Mortgage rates are less relevant to older homeowners 

High mortgage rates aren’t spooking everyone. About 1 in 4 U.S. homeowners (26%) say high mortgage rates would not impact their decision on when to sell their home, with Boomer (ages 59-72) homeowners being the most likely to say they would not impact their decision on when to sell (35% v. 23% Gen X ages 43-58, 20% Gen Z ages 18-26, 14% Millennials). 

Among homeowners who say high mortgage rates would not impact their decision about when to sell their home, 43% say it’s because they would not need a mortgage to buy a new home and 28% say it’s because they have enough money to cover the high rates. 

“While it’s not surprising that homeowners are apprehensive about selling their home in fear of losing their low mortgage rate, there are other factors to contemplate beyond mortgage rates when deciding when is the right time to sell,” said Aniva Hinduja, general manager of home and mortgage at Credit Karma. “For homeowners who are unhappy with their current housing situation, it may not be worth holding out for rates to fall. If they can afford to make that next home purchase while rates are where they’re at, there will likely be a chance to refinance to a lower rate down the road. Plus, most homeowners have been able to build equity in their homes over the years, which means they might have the opportunity to put more money down toward a new home to ease some of the financial burden that may come with having a higher mortgage rate. ”

Methodology: 

This survey was conducted online within the United States by The Harris Poll on behalf of Intuit Credit Karma between May 24-26, 2023 among 1,484 U.S. homeowners ages 18+, among whom 282 plan to sell their home in the next three years   The sampling precision of Harris online polls is measured by using a Bayesian credible interval. The sample data is accurate to within +/- 2.9 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com.

Dining out with friends is all fun and games until the bill comes and groups are left to decide how they’d like to split the tab. Does the person who ordered more pay more? What about the person who decided not to imbibe, should they pay less? Then there’s the question of who puts their card down, who should Venmo who and how much do they owe? This mental gymnastics can be exhausting for those simply trying to enjoy a night out with friends and, in some cases, can be the source of extreme financial anxiety. 

According to a study conducted by Qualtrics on behalf of Intuit Credit Karma, nearly one third of millennials (32%) feel awkward splitting the bill with friends, the most of any generation. Some are so concerned, they’re even willing to pay the full cost of a bill to avoid awkward conversations about money. This is true for nearly half (47%) of millennials. That’s compared to 33% of Gen Z and 31% of boomers. 

Footing the bill might not be the best choice for millennials, especially if they plan to use credit to treat their friends. According to the study, nearly half (46%) of millennials say putting large group charges on their credit card causes them extreme anxiety. This could have something to do with the fact that one-in-five millennials don’t feel comfortable requesting money from friends after a night out, making it difficult for them to recover costs and potentially perpetuating the financial anxiety associated with splitting the bill. 

While many millennials get extreme anxiety when asked to put their credit card down for the table, the other half say they actually prefer to put group charges on their card – and they’re doing it for the points and rewards. Using credit cards to earn points and rewards can really add up, especially if someone is consistently covering the cost of group tabs and actually getting paid back by others in the group. According to the study, 40% of millennials who prefer to put charges on their card to earn rewards say, on average, more than half of their monthly credit card points and rewards are earned from covering the bill for others. And they’re not letting them go to waste. Of millennial respondents who prefer to pay for the table, 80% say they actually use the points and rewards earned from covering other people’s bills.

When it comes to who should pay for what, more than half of millennials (52%) say if one person’s portion of the meal costs more, they should pay for a larger portion of the bill. Another 29% of millennial respondents believe the person who earns the most money should be responsible for the bill. Regardless, the majority of millennials (82%) believe repayments should be made within one week, with 40% saying they only give people a few days to send payment requests.  

“We all have that friend who offers to pay the bill for the group in exchange for Venmo requests,” said Courtney Alev, consumer financial advocate at Credit Karma. “While that friend may offer relief to those who feel a sense of dread when asked to put their card down, it’s causing people to  leave money on the table. Many premium dining-out credit cards offer the equivalent of 3% or more in rewards, which means a portion of the bill is going back to whoever paid the tab. This might seem insignificant, but it can really add up for those who are mindful about their spending habits and optimize their credit card usage to earn points and rewards – especially for something as frequent as dining out. Another thing that really surprised me was that some millennials are willing to cover the cost of their friends’ meals to avoid awkward conversations about money. Treating your friends occasionally is a kindness, but it isn’t sustainable, especially during a period of high inflation. If you’re someone who feels awkward talking about money, consider carrying cash to dinners with friends. That way you can stay on budget without having to deal with an uncomfortable conversation.” 

Methodology:

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between June 7, 2023 and June 9, 2023 among 1,005 adults ages 18 and older.

Young Americans are losing friends over their spending habits and it’s putting a damper on their finances. 

According to a study conducted by Qualitrics on behalf of Intuit Credit Karma, more than one-third of Gen Z and millennials (36%) have a friend who drives them to overspend. This is leading many to take on debt and in some cases, end friendships to protect their finances. 

Of millennial respondents who have a spendy friend, someone who drives them to spend more money than they can afford, 88% have taken on debt as a result of spending time with that friend. The same is true for 80% of Gen Z respondents who have a friend that drives them to overspend. Millennials are worse off however, with 15% admitting they’ve taken on $500 or more in debt as a result of spending time with their spendy friend, compared to just 2% of Gen Z respondents in the same boat. 

Among millennials with a profligate friend, 43% say they typically overspend on dining out or drinks and nights out (37%). Others noted more elaborate events, like trips and vacations (22%) or birthday celebrations (21%) are driving up costs. Similarly, Gen Z blamed dining out (37%) as the main reason for their overspending, while others said they typically overspend with their friend on clothing (36%), drinks and nights out (32%), trips and vacations (24%) and even self care (20%), including things like massages and manicures. 

The top reasons young respondents spend money they don’t have when they’re with their spendy friends include not wanting to feel left out (31% of Gen Z and 32% of millennials who say they have a friend who drives them to overspend), wanting to keep up with their friend’s lifestyle (29% of Gen Z and 28% of millennials) and wanting to please their friend (29% of Gen Z and 28% of millennials). Another 28% of millennials also admit they simply don’t know how to say “no” to this friend. 

This misalignment in spending is leading many younger Amerians to consider ending friendships due to their friends’ spending habits. This was the case for 47% of Gen Z and 36% of millennials. This could explain why young folks are now seeking out friends who earn as much as them. According to the study, 35% of Gen Z respondents say it’s important that their friends earn as much as them, along with 29% of millennials. 

“Spending money to keep up with friends isn’t anything new, but it could be a problem if people are starting to lose friends over misaligned spending habits,” said Courtney Alev, consumer financial advocate at Credit Karma. “Talking about your finances with your friends could help alleviate some of the stress associated with money, especially if you and your friend have different financial situations. Yet, more than a quarter of millennials (26%) say they keep their income and debt a secret from their friends to avoid judgment. If you’re in a situation where you feel pressured to spend money to keep up with your friend’s lifestyle, start by being honest with them about your financial situation and what your limitations are when it comes to spending on things like dining out or a night out on the town. This will help set expectations and limit your chances of overspending when you’re with this friend.”   

Methodology:

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between June 7, 2023 and June 9, 2023 among 1,005 adults ages 18 and older.

The housing market has been in an ongoing state of turbulence, resulting in an affordability crisis that is likely keeping many prospective buyers on the sidelines. As buyers face decades-high mortgage rates, many Americans are met with concerns that they’ll never be able to afford a home, while others are making sacrifices to achieve the American dream. 

According to a new study conducted by The Harris Poll on behalf of Intuit Credit Karma among 2,053 US adults ages 18+, more than 4 in 5 Americans (82%) believe the country is facing an unprecedented housing affordability crisis. Perhaps that’s why more than 3 in 5 Americans who have never purchased a home (61%) don’t think they’ll ever be able to afford to do so. 

Younger Americans are disproportionately impacted by the current housing crisis, and it’s not just Gen Z (ages 18-26) and millennials (ages 27-42) who think they’re getting the short end of the stick. A majority of Americans (77%) think it is more difficult for younger generations to buy their first home compared to older generations, with Boomers (ages 59-77) more likely to feel this way compared to millennials and Gen X (81% vs. 75% millennials & 74% Gen X ages 43-58). 

What lengths did recent home buyers go in order to purchase a home? 

The housing affordability crisis is so dire that almost two thirds of prospective home buyers (64%) say they are ready for a recession if it means interest rates will go down, enabling them to better afford a home. 

For recent buyers who were motivated enough to take the plunge amid high interest rates, homeownership didn’t happen without sacrifice. Of the 13% percent of Americans who are recent home buyers (those who bought a home in the past two years), 82% say they made sacrifices in order to purchase their most recent home. Here’s a breakdown of the sacrifices recent home buyers made to get into a home: 

Can recent home buyers actually afford their new home? 

More than 2 in 5 recent home buyers (45%), defined as those who bought in the last two years, say they are struggling to afford their monthly mortgage payments due to high interest rates. For those who recently purchased a home, 36% used money from savings, 32% used money from another home sale, 17% paid in all cash, 17% used money gifted from family (including 23% of millennials), 9% took out an adjustable-rate mortgage (ARM) and 9% did a mortgage rate buy-down. 

Prospective buyers still have plans to buy – what’s their strategy? 

Regardless of the current housing market, plenty of Americans still plan to purchase a home in the coming years with 29% planning to do so in the next three years, 19% planning to do so in the next two years, and 8% planning to do so in the next 12 months. Gen Z and millennials are more likely than Gen X and Boomers to say they plan to purchase a home in the next three years (42% and 48% v. 24% & 11%) and in the next two years (30% each vs. 17% & 9%). 

Prospective home buyers, including first-time buyers, grappling with high interest rates are having to get creative with their home buying strategy. Here’s a breakdown of how home buying strategies shake out for those looking to buy:

“There is no denying how difficult it’s become to purchase a home in America today, especially for first-time buyers,” said Aniva Hinduja, general manager of home and mortgage at Credit Karma. “When a majority of potential home buyers are wishing for a recession so they can afford a mortgage, you know the situation is dire. Prospective buyers should be diligent when budgeting for a home, taking into account how much they’ll pay each month in mortgage interest and factoring in other financial obligations they have at a time when borrowing costs are high. They should also give a lot of thought to what potential risks they’re willing to take on to purchase a home in today’s market. For instance, while taking out an adjustable-rate mortgage (ARM) might ease some of the financial burden at the onset of a loan term, borrowers need to make sure they’ll be able to afford their new monthly payments once their rate switches from fixed to variable.” 

Methodology: 

This survey was conducted online within the United States by The Harris Poll on behalf of Intuit Credit Karma between May 24-26, 2023 among 2,053 adults ages 18+, among whom 264 have purchased a home in the past 2 years, and 579 plan to purchase a home in the next 3 years.  The sampling precision of Harris online polls is measured by using a Bayesian credible interval. The sample data is accurate to within +/- 2.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com. 

The impact of the 2021 “wedding boom” has resulted in continued demand, driving up costs across the industry. Regardless, some brides and grooms feel an increased pressure to keep up with appearances, planning elaborate weddings among the likes of influencers and celebrities – hello, Sofia Richie – or even random people on social media thanks to the rise of “Wedding Tok.” The race to the most elaborate altar has raised costs for not only the couple getting married, but also guests—and it’s taking a toll on peoples’ friendships.

According to a recent study by Qualtrics on behalf of Intuit Credit Karma, nearly a quarter of Gen Z and Millenials (23%) are losing friends and family over the financial costs associated with attending a wedding or wedding-related event (bachelor/bachelorette party, wedding shower, etc.).

The evolution of the stag/hen party

What started as a night out on the eve of a wedding has turned into days-long vacations at destinations all around the world. The problem: not everyone can afford it and it’s starting to drive a wedge between some wedding hosts and their guests. 

This was especially common among younger generations who also admitted feelings of financial instability (36% of millennials and Gen Z). Despite this, many young people still feel obligated to attend certain nuptial related events, often leading to feelings of regret. According to the study, 42% of Gen Z and millennials feel obligated to attend weddings or wedding-related events.

As a result, many are left with feelings of regret. Nearly one-third of Gen Z and millennials (30%)  say they regretted attending a wedding or wedding-related event because the cost to attend was more than they could afford.

My presence is a present 

Travel costs are up 9% in the past year and 20% since 2019. For those with far and away wedding-related events on the books, the cost of traveling could add up quickly if they’re not planful. 

Zooming out, 23% of Americans who plan to attend a wedding this year estimate they’ll spend more than $1,001 per wedding. On top of that, 38% of those attending a wedding or wedding related event plan to spend the same amount on bachelor/bachelorette parties, with another 13% anticipating they’ll spend north of $2,000.

Budgeting could be more manageable for those attending just one wedding or wedding-related event this year, which is the case for 20% of Americans with travel plans or who are unsure if they will travel this summer. However, not so much for the 27% of the aforementioned group who plan to attend 3 or more weddings or the 41% who plan on attending 3 or more bachelor/bachelorette parties in the same time frame. 

To offset the cost, Gen Z who plan to attend a wedding or bachelor/bachelorette party are down to bail on gifts if it means they’re able to attend the wedding and related events, with 31% of Gen Z respondents saying they will give less of a gift and another 11% saying they will skip the gift altogether. This is less true for older generations who seem to place a lot of emphasis on gift giving at weddings. 

Regretfully, I am unable to attend

Still, a large group of wedding guests are dismissing the feeling of obligation altogether and opting for financial stability over friendships. According to the survey, 38% of Gen Z and millennials are skipping a wedding and/or wedding-related events entirely because they can’t afford it.

“The expectations of wedding guests have expanded over the years. What was once an isolated event has turned into multiple events, trips and celebrations spanning over a year or possibly more,” said Courtney Alev, consumer financial advocate for Credit Karma. “While this can be a really exciting time, it can become costly and even unaffordable for many people. That’s why it’s important to have conversations about money with friends and family before the event. While these conversations can be uncomfortable, it’s important to open that line of communication to avoid causing a rift in a friendship. Try to have a conversation early about what events are most important to the bride and groom, and be open about what you can and cannot afford. From there create a budget that works for you so that you’re still able to celebrate the people you love in a way that doesn’t put stress on your finances. It’s not worth going into debt to attend events you cannot afford, especially if it leads to resentment.”

Methodology: 

This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma between May 8, 2023 and May 9, 2023 among 1,009 adults ages 18 and older.

Gen Z (born between 1997 and 2005) is doing things differently, bucking societal norms, like the traditional nine-to-five, and forging a new path forward. As part of this, Gen Z has started to gravitate towards trends like the FIRE movement (financially independent, retire early) and are looking for ways to maximize their earnings and limit their number of working years.

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, more than half of Gen Z (53%) consider themselves part of the FIRE movement. For the purposes of this study, this movement is defined as a population of people devoted to extreme saving and investing with the goal of retiring early. Of those who identify with the movement, nearly half of Gen Z (47%) say they are likely to retire early. However, nearly one-third (32%) of Gen Z report having $0 saved for retirement, demonstrating a misalignment in their plans to retire young and the reality of their financial situation. 

Inflation threatens early retirement aspirations 

Not having money set aside for retirement is one thing, but what about not having any money in savings, period, which is the case for 20% of Gen Z. This could have something to do with the fact that 30% of Gen Z respondents do not feel financially stable right now, which may be  the result of sustained inflation and increasing borrowing costs.

Of Gen Z respondents who are currently employed and have a retirement account (e.g. 401(k), Roth IRA), 20% say they have had to decrease their contributions within the last year as a result of inflation. Meanwhile, 22% of respondents who are currently employed  say they cannot afford to contribute to their retirement account, or have no retirement account to contribute to. 

Slow and steady wins the race, or not? 

When it comes to building retirement savings you have to start somewhere, and it helps to remain consistent. Yet, Gen Z lags behind other generations when it comes to taking advantage of investment vehicles. According to the study, more than three quarters (76%) of Gen Z don’t have a 401(k) or a Roth IRA (89%). What’s more, more than half (54%) don’t have a checking account and nearly half don’t have a  savings account (47%).  

When taking a closer look at Gen Z’s expectations around retirement, they were the most likely of all the generations to believe they will retire early. Here’s a breakdown of what age respondents expect to retire:

Among survey respondents who are currently employed or a student

Here’s another look at how much money respondents who consider themselves part of the FIRE movement think they need to retire early: 

Among respondents who think of themselves as part of the FIRE movement

Deciding how much money is adequate to have saved for retirement is largely dependent on individual lifestyle choices and expectations, and while $1 million is a big chunk of change, is it enough for nearly half of Gen Z (46%) who think they can retire early with less than that in the bank? 

“It’s interesting how bullish Gen Z is about their retirement plans, especially since so many have entered the workforce for the first time during an unfavorable economic environment, making it difficult for them to save money,” said Courtney Alev, consumer financial advocate at Credit Karma. “This generation’s appetite to retire early could have something to do with many of them not being beholden to the 9-5 career path, and having grown up on the internet, they’re exposed to content creation at scale – much of it touting alternative ways to make money that people their age appear to be making a cushy living off of. While it’s inspiring to see how Gen Z is reinventing their own career paths, they should still prioritize putting money aside for retirement, or at least focus on building a general savings nest.”

Methodology:

This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma between March 20, 2023 and April 3, 2023 among 1,006 adults ages 18 and older.

As consumers prepare for their summer vacations, it’s likely many will experience sticker shock when it comes to the total cost of the experience, especially with travel prices on the rise and the demand for travel at pre-pandemic levels. However, increased prices might not be enough to hold consumers back from taking a vacation this year – especially younger folks. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, 69% of millennials and 63% of Gen Z say they plan to travel this summer and many will do so despite high travel prices. In fact, more than half of millennial respondents say they will take a vacation this summer even if travel prices are higher than usual (51%), along with 46% of Gen Z. 

Consumer travel plans may be influenced by social media

An influx in the number of flashy vacations posted on social media could be driving such desperate spending behaviors among young hopeful travelers – and who could blame them. According to the study, 38% of Gen Z and 28% of millennials say they’ve been influenced to spend money they don’t have on travel after seeing other people’s vacations on social media. That’s far more than the amount of Gen X and Boomers+ who report falling into the same trap, 15% and 7% respectively. 

This trend appears to be an extension of FOMO spending, which is when consumers spend money they don’t have out of a fear of missing out (FOMO). According to the study, more than three-quarters of Gen Z respondents (76%) admit to going into debt as a result of FOMO, along with 69% of millennials. For Gen Z who have gone into debt as a result of FOMO, 40% have done so to dine out, 34% take part in vacations and birthday celebrations and 31% attend a concert(s). 

What lengths would consumers go to travel this summer? 

Among Gen Z respondents who plan to travel this summer or are unsure of their travel plans, half say they’re willing to sacrifice dining out and meal delivery (50%), shopping for things like clothing or electronics (47%), and regular coffees out (44%) to pay for their travel. More than that, Gen Z respondents who plan to travel or are unsure of their travel plans say they’re willing to take on an additional job (35%) or sell personal items (34%) to pay for travel. More concerning, however, nearly one-in-five of them say they’re willing to give up necessities to pay for travel this summer (19%). 

Outside of dining out (49%) and shopping (43%), 39% of millennial respondents who plan to travel or are unsure of their travel plans say they’re also willing to give up experiences, including sporting events and concerts, to pay for their travel this summer. 

Social influence could lead to debt for many young Americans

Spending money might not be the wisest move for summer travelers – especially those who may be struggling financially. This is the case for nearly a third of Americans (30%), including 39% of Gen Z and 33% of millennials, who say they do not feel financially stable right now. As a result, it’s possible many will be forced to rely on credit to finance their travel. 

More than three quarters of Gen Z (76%) and millennial respondents (83%) who plan to travel or are unsure of their travel plans, say they are willing to take on debt to finance their travel this summer. Of those who are willing to take on debt for travel this summer, more than a third of Gen Z (34%) plan to take on $500 or more in debt, along with nearly half of millennials (48%). Others plan to use savings, or even borrow money from family or friends to pay for travel. In fact more than a quarter of Gen Z (26%) will rely on family or friends to help pay for their travel this summer.   

Insert quote from Courtney

“Travel prices are on the rise, yet it’s not impacting demand, despite the fact many consumers – in particular Gen Z – are struggling to keep up with their finances,” said Courtney Alev, consumer financial advocate at Credit Karma. “Making matters worse, many of us are flooded with content on our social media feeds of people on lavish vacations, which only increases our desire to travel. At the same time it gives us this sense of attainability that might not be realistic when it comes to our actual budgets. That’s what we’re seeing in this study: young folks are being influenced by what they’re seeing on social media, which is driving them to spend money they don’t have to replicate the vacations they’re seeing online. This can be a slippery slope for those who are already falling behind financially. If you’re thinking of taking a vacation this summer, do your best to plan ahead and stick to a budget.” 

Methodology

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between May 8, 2023 and May 9, 2023 among 1,009 adults ages 18 and older.