The news: More than half (55.3%) of Gen Zers use advanced budgeting tools—a greater share than any other generation, per a PYMNTS Intelligence report.

How we got here: Young consumers are feeling economic pressure; 25.4% of Gen Zers said they feel anxious about their finances. For individuals struggling to live paycheck-to-paycheck, reported anxiety spikes to 46.5%. 

With Gen Zers prone to splurging, this anxiety is only set to increase: 

• At live events, 86% of the cohort goes over budget as experiential value, convenience, and impulse seduce them into irresponsible spend patterns, per a survey by Merge. 
• And 30% of Gen Z BNPL users said that installment loans lead them to overspend, per Bankrate. 

How Gen Z reframes their finances: Incorporating specialized budgeting tools can help financially embattled young adults regain control over their finances. 

Advanced tools like expense trackers, specialized budgeting apps, or access to a financial advisor can significantly alleviate anxiety: 47% of advanced budgeters feel comfortable with the state of their personal finances.

Our take: Payment providers, issuers, and banks can embed more advanced tools within their apps to reach Gen Zers actively seeking sophisticated ways to plot out their spending and saving habits. 

These tools can also be an effective way to cross-sell other services. 

• If an advanced tool recognizes that a user has substantial funds in a checking account, it could recommend opening up a higher yielding savings account through the same provider. 
• Similarly, if a tool sees that a user spends a lot of money at restaurants, it could recommend a card with better rewards for dining.

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