The Buy Now Pay Later Trap Catching 49% of Gen Z Before They Ever Save a Dollar
49% of Gen Z plan to use Buy Now Pay Later services for large purchases in 2026, and 36% plan to use it for daily essentials like groceries and gas. This trend indicates a generation financing its life in installments before building meaningful savings.
Buy Now Pay Later services have become a core part of Gen Z's payment habits, with 49% planning to use them for large purchases and 36% for daily essentials in 2026. The trend is driven by rising consumer prices and a decline in the personal savings rate. Gen Z is normalizing installment debt for everyday purchases, layering BNPL plans on top of existing debt stacks, including credit cards and other personal debt. The average personal debt balance among Americans is $21,700, with 65% of U.S. adults carrying some form of personal debt outside of a mortgage. This pattern may impact Gen Z's ability to save and invest for the future, potentially affecting their retirement savings. The data suggests that Gen Z is prioritizing debt repayment over saving, with 62% of U.S. adults with debt focusing on paying it down.
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