Latest news with #PYMNTSIntelligence
Yahoo
12-06-2025
- Business
- Yahoo
Buying a House Is the Second Most Important Financial Goal for Gen Z—the No. 1 Goal Is Why It's Out Of Reach
Gen Z is falling behind on the path to homeownership. In 2025, they made up just 3% of all homebuyers, according to the National Association of Realtors®, the smallest share of any generation and a sharp contrast to baby boomers, who accounted for 42% of buyers. While high interest rates and higher home prices have made it harder for young adults to break into the market, new research suggests another force might be working against Gen Z: how they manage their money. According to PYMNTS Intelligence, a payments data provider, despite valuing homeownership, Gen Z's top financial goal isn't buying a home. It's paying off debt. The average Gen Z adult carries an average of $94,101 in personal debt, with credit card debt being the most common. With so much of their income tied up in monthly payments, even high earners in this generation are struggling to save for a down payment or qualify for a mortgage. Debt, not disinterest, might be the real reason Gen Z is falling behind—at least for now. 'Though Gen Z Americans may dream of homeownership, still-high housing costs mean that stepping onto the property ladder may not be possible at this point in time,' says Hannah Jones, senior economic research analyst at 'By prioritizing paying off debt, Gen Z prospective buyers are setting themselves up for success when homeownership does become more feasible.' PYMNTS Intelligence identifies two key money management mindsets: Planners, who proactively save and pay off credit cards Reactors, who handle bills as they come and often rely on credit or loans Gen Z overwhelmingly falls into the latter group. A striking 73% of Gen Zers are classified as reactors, making them more likely to live paycheck to paycheck, carry high-interest debt, and struggle to build savings. That reactive approach can seriously undermine major financial goals, like buying a home, because it prioritizes short-term survival over long-term stability. Even more surprising, the reactor mindset is gaining ground among high earners across generations. Since February 2024, the share of six-figure earners who identify as planners has dropped by 25%. Now, 52% of top earners are reactors, a shift that underscores how widespread short-term financial thinking has become, even among those typically viewed as having the means to plan ahead. Unlike baby boomers, 54% of whom are planners focused on long-term stability, Gen Z is chasing growth. According to the PYMNTS report: Just 7.7% of Gen Z cite retirement saving as a top financial priority, compared with 22.1% of baby boomers. Nearly 7% of Gen Z say their No. 1 goal is starting a business, making them eight times more likely than boomers to focus on entrepreneurship. 'Gen Z Americans have time on their side and may be more willing to take big swings financially, while older generations are more risk-averse,' says Jones. While starting a business can lead to long-term wealth, it typically comes with short-term financial instability, exactly what makes it harder to qualify for a mortgage or build up a down payment. Irregular income, high credit utilization, and limited savings make it much harder to qualify for a mortgage under traditional lending models. Even high-earning Gen Z entrepreneurs might struggle to demonstrate the consistent income or financial reserves lenders expect. This risk-oriented mindset might be a reaction to the current conditions of the housing market. Buyers now need to earn 70% more than they did just six years ago to buy a home, to say nothing of the difference between buying a house now than in the 1960s and '70s, when many baby boomers bought their first homes. These conditions have made many in Gen Z feel that shooting for the moon in business is a more realistic goal than saving for that white picket fence. Homeownership hasn't fallen off Gen Z's radar, but it's taking a back seat to paying off existing debt. Buying a house ranks as this generation's second most important financial goal, with 14.1% of Gen Zers ranking it as a priority. But deprioritizing homeownership, even temporarily, can come at a long-term cost. In a market where prices keep climbing, every year spent focusing elsewhere can make the eventual buy-in more expensive. And because lenders heavily weigh savings, credit usage, and income consistency, Gen Z's current financial behaviors—like revolving debt and low reserves—can delay homeownership even further, regardless of intent or income. In other words, Gen Z still wants to own, but the reactive financial path they're following makes it harder to get there. Without a shift in priorities, many might find themselves stuck in a cycle where the dream of owning a home never quite catches up to their ambition. To bridge the gap between ambition and ownership, Gen Z might need to rethink how they prioritize and manage their money. The good news is that paying off debt, Gen Z's top financial priority, will eventually help them buy a house by lowering their debt-to-income ratio. The area where they can make the biggest changes, though, is in moving from a reactive mindset to a planning mindset. Here's how they can get started: Automate savings to gradually build up a down payment. Track spending patterns to identify areas to cut back. Use credit strategically, aiming to pay in full each month. Pursue both goals in parallel—treat debt repayment as a priority, but not at the cost of building a safety net to support future homeownership. Gen Z hasn't turned away from homeownership, but when the top priority involves risk or volatility, it can make the second one harder to reach. With the right habits and tools, Gen Z can build both the freedom to pursue big dreams and the foundation to one day own a piece of them. What Happens If I Stop Paying My Mortgage? Giving or Receiving a Down Payment Gift? Here Are the Tax Consequences How To Get a Mortgage With Bad Credit (Yes, You Can)
New York Post
11-06-2025
- Business
- New York Post
Gen Z Wants To Own Homes—So Why Is It Still Out of Reach for Most?
Gen Z is falling behind on the path to homeownership. In 2025, they made up just 3% of all homebuyers, according to the National Association of Realtors®, the smallest share of any generation and a sharp contrast to baby boomers, who accounted for 42% of buyers. While high interest rates and higher home prices have made it harder for young adults to break into the market, new research suggests another force might be working against Gen Z: how they manage their money. Advertisement According to PYMNTS Intelligence, a payments data provider, despite valuing homeownership, Gen Z's top financial goal isn't buying a home. It's paying off debt. The average Gen Z adult carries an average of $94,101 in personal debt, with credit card debt being the most common. With so much of their income tied up in monthly payments, even high earners in this generation are struggling to save for a down payment or qualify for a mortgage. Debt, not disinterest, might be the real reason Gen Z is falling behind—at least for now. 4 Gen Z's biggest financial concern is how they are going to pay off their debt. Getty Images Advertisement 'Though Gen Z Americans may dream of homeownership, still-high housing costs mean that stepping onto the property ladder may not be possible at this point in time,' says Hannah Jones, senior economic research analyst at 'By prioritizing paying off debt, Gen Z prospective buyers are setting themselves up for success when homeownership does become more feasible.' The 2 financial personas and where Gen Z fits in PYMNTS Intelligence identifies two key money management mindsets: Planners , who proactively save and pay off credit cards , who proactively save and pay off credit cards Reactors, who handle bills as they come and often rely on credit or loans Advertisement Gen Z overwhelmingly falls into the latter group. A striking 73% of Gen Zers are classified as reactors, making them more likely to live paycheck to paycheck, carry high-interest debt, and struggle to build savings. That reactive approach can seriously undermine major financial goals, like buying a home, because it prioritizes short-term survival over long-term stability. Even more surprising, the reactor mindset is gaining ground among high earners across generations. Since February 2024, the share of six-figure earners who identify as planners has dropped by 25%. Now, 52% of top earners are reactors, a shift that underscores how widespread short-term financial thinking has become, even among those typically viewed as having the means to plan ahead 4 Even high earners in this generation are struggling to save for a down payment or qualify for a mortgage. Getty Images/iStockphoto Risk over security: The Gen Z money mindset Unlike baby boomers, 54% of whom are planners focused on long-term stability, Gen Z is chasing growth. According to the PYMNTS report: Advertisement Just 7.7% of Gen Z cite retirement saving as a top financial priority, compared with 22.1% of baby boomers. Nearly 7% of Gen Z say their No. 1 goal is starting a business, making them eight times more likely than boomers to focus on entrepreneurship. 'Gen Z Americans have time on their side and may be more willing to take big swings financially, while older generations are more risk-averse,' says Jones. While starting a business can lead to long-term wealth, it typically comes with short-term financial instability, exactly what makes it harder to qualify for a mortgage or build up a down payment. Irregular income, high credit utilization, and limited savings make it much harder to qualify for a mortgage under traditional lending models. Even high-earning Gen Z entrepreneurs might struggle to demonstrate the consistent income or financial reserves lenders expect. This risk-oriented mindset might be a reaction to the current conditions of the housing market. Buyers now need to earn 70% more than they did just six years ago to buy a home, to say nothing of the difference between buying a house now than in the 1960s and '70s, when many baby boomers bought their first homes. These conditions have made many in Gen Z feel that shooting for the moon in business is a more realistic goal than saving for that white picket fence. 4 Gen Z is more willing to take risks than previous generations. Getty Images/iStockphoto Why buying a home is still a priority—just not the first one Homeownership hasn't fallen off Gen Z's radar, but it's taking a back seat to paying off existing debt. Buying a house ranks as this generation's second most important financial goal, with 14.1% of Gen Zers ranking it as a priority. But deprioritizing homeownership, even temporarily, can come at a long-term cost. In a market where prices keep climbing, every year spent focusing elsewhere can make the eventual buy-in more expensive. And because lenders heavily weigh savings, credit usage, and income consistency, Gen Z's current financial behaviors—like revolving debt and low reserves—can delay homeownership even further, regardless of intent or income. Advertisement In other words, Gen Z still wants to own, but the reactive financial path they're following makes it harder to get there. Without a shift in priorities, many might find themselves stuck in a cycle where the dream of owning a home never quite catches up to their ambition. 4 The generation is mostly concerned with first paying off existing debt, putting homeownership on the back burner. Getty Images What Gen Z can do differently To bridge the gap between ambition and ownership, Gen Z might need to rethink how they prioritize and manage their money. The good news is that paying off debt, Gen Z's top financial priority, will eventually help them buy a house by lowering their debt-to-income ratio. The area where they can make the biggest changes, though, is in moving from a reactive mindset to a planning mindset. Here's how they can get started: Advertisement Automate savings to gradually build up a down payment. Track spending patterns to identify areas to cut back. Use credit strategically, aiming to pay in full each month. Pursue both goals in parallel—treat debt repayment as a priority, but not at the cost of building a safety net to support future homeownership. Gen Z hasn't turned away from homeownership, but when the top priority involves risk or volatility, it can make the second one harder to reach. With the right habits and tools, Gen Z can build both the freedom to pursue big dreams and the foundation to one day own a piece of them.
Yahoo
05-06-2025
- Business
- Yahoo
3 Ways a Personal Loan Can Help Launch Your Side Hustle
In this day and age, it's remarkably common to find people with a side hustle. According to PYMNTS Intelligence, around 40% of Americans have a side gig. For You: Try This: Some side hustlers earn only a few hundred dollars a month, while others earn much more than that. Forbes found that the average side hustler brings in about $12,689 a year — a little over $1,000 a month. If you're hoping to supplement your regular income or even build a small business someday, using a personal loan could help you get started with a side hustle. Are you interested in crafting and selling the things you make? Building up inventory for a reselling gig? Or maybe you just need upgraded tech to keep up with your hustle's needs. Whatever your gig, you'll probably need some equipment and inventory to get you started. You can use a personal loan for nearly any reason — provided the lender doesn't stipulate against it. This means you can use the funds to purchase inventory, supplies, equipment and more. This is good news for those who want to sell digital products, too. After all, you might need to pay for things like website hosting, tech equipment or software programs to make courses, books and other products. Notably, personal loans come in all sizes, ranging from as low as a few hundred dollars to $100,000 or even more. Check Out: If you want to launch a side hustle that will eventually become a business, you might need financing. For some small business owners, this comes in the form of a business loan. Small business loans often have stringent requirements. For example, your business might need to be at least two years old or bring in a certain amount of revenue — things that just aren't feasible for new side hustlers. A personal loan could be a way to get around the strict funding criteria. They're usually easier to get and, like business loans, you're still responsible for paying back what you owe, usually with interest. 'One thing many people don't know is that small business loans typically require a personal guarantee, so even if you're able to get a business loan, the owner's typically personally on the hook anyway,' said Carolyn Katz, who runs the funding group at Score NYC, an SBA-sponsored nonprofit. 'And the SBA [Small Business Administration] loan process can be quite time-consuming. So often, for manageable amounts of money, personal debt can be faster and more flexible than business debt.' Personal loans aren't the only option. You could also theoretically use a credit card or home equity line of credit (HELOC) to start your side hustle. Again, be prepared to pay back what you owe, and pay attention to the interest rate. You've probably heard the expression, 'You need money to make money.' With a personal loan, you can launch a side hustle and potentially see great returns — but you'll want to be strategic about it. 'If you're using a personal loan to kickstart something that actually has the potential to make more money, that's not reckless, it's smart. Just be strategic,' said Joseph Camberato, CEO at National Business Capital. Caberato's advice is not to overthink things like building the perfect website or getting the branding just right. Instead, put the funds toward things that bring in revenue for your side hustle or business. 'Focus on cash flow first,' he said. This means prioritizing making sales, attracting customers and marketing. Any kind of debt carries some risk, so don't take out a personal loan unless you're ready. Here are some things to think about: You have to pay it back: Debt has to be repaid. If you take out a loan without a clear repayment plan, you could end up facing issues like high interest charges, late fees or damaged credit. Have some extra cash: This can be vital in making sure you don't fall behind on payments, especially if your side hustle doesn't start making money right away. Be aware of interest rates and fees: These depend on factors like your credit score and the lender, but you'll probably still have to pay interest on the funds. The average interest rate on a personal loan is 20.78% as of late May, according to Business Insider. Some loans also have origination fees ranging from 1% to 10% of the loan amount. More From GOBankingRates 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 3 Ways a Personal Loan Can Help Launch Your Side Hustle
Forbes
16-04-2025
- Business
- Forbes
The Tariff Economy: Pricing Pressures Are Reshaping Financial Habits
As credit card debt surges past $1.2 trillion, according to the American Financial Services Association, interest rates remain stubbornly high. Plus, uncertainty around tariffs adds pressure on the cost of everyday goods. Many Americans are feeling the strain. In today's economic environment, maintaining financial stability is becoming increasingly difficult. Consumers are already managing significant debt loads—and evolving trade policies could add further cost pressures. In a time when tariffs and supply chain pressures may increase the prices of everything from clothing to groceries, consumers are more cautious with spending and more selective about the financial products they trust. As expenses rise, so does the need for smarter, more flexible solutions to help people manage these dynamics and adapt to what's ahead. As tariffs add new pressure to household budgets, consumers are already looking for smarter and more flexible ways to make purchases. Features like automated saving or debt payoff—"set it and forget it" solutions—are a hit with busy people managing complex financial lives. Transparency is also critical. Confusing fine print and surprise charges? Consumers don't have the patience—or the budget—for that anymore. The idea that fintech is just for the young is now ancient history. People of all ages are jumping on board as economic uncertainty and rising living costs drive demand. Boomers and Gen X, for example, are now among the most active users of digital financial tools, according to a 2024 survey conducted by PYMNTS Intelligence and Splitit, my startup. Especially when it comes to budgeting, credit monitoring, and payment management, older generations are using fintech solutions. That shift comes as many face mounting financial pressure, now exacerbated by tariffs, both new and threatened. Additionally, market volatility is making it increasingly difficult for consumers who rely on their 401(k) or investment portfolios to maintain their financial security. According to the American Association of Retired Persons, more than a third of Gen X and Baby Boomers report rising credit balances. Gen X, often sandwiched between supporting aging parents and raising children, carries the highest credit card debt of any generation, with an average balance of $9,557, according to Forbes Advisor. To truly address today's volatile economic realities, fintech can help by going beyond convenience and lean into three foundational imperatives that reflect both market conditions and consumer behavior: 1. Data-Driven Transparency Amid inflation, high interest rates, and tariff-related uncertainty, consumers need more than simplicity—they need clarity with confidence. Fintech tools should be personalized, surfacing actionable AI powered insights, reducing cognitive friction, and guiding users through complex financial decisions in real time. It's not just UX—it's contextualized intelligence. 2. Adaptive Flexibility That Preserves Liquidity With rising and unpredictable expenses—from utilities to grocery bills—consumers need more than getting more on-demand credit. Fintech must offer flexible solutions like dynamic installments and on-demand payments that help manage cash flow without deepening debt. The aim: liquidity with control, not just credit access. 3. Human-Centered Design At Scale Financial health varies dramatically by age, income, and digital fluency. Fintech must serve the digitally native and the digitally cautious alike—building inclusive products through behavioral segmentation, personalized experiences, and real-world use cases, not idealized user personas. To make a meaningful impact, fintech must not just cater to diverse needs—it must measurably improve financial outcomes. That means solving for volatility, liquidity, and financial decision fatigue through smarter, more adaptive tools. Here are some innovations that stand out: 1. Precision Budgeting Through Behavioral Nudges Basic budget tracking is table stakes. What's driving change now is the use of behavioral science to influence financial decisions. Tools like YNAB and Copilot don't just track spending—they reframe how people think about money by assigning every dollar a job and using personalized alerts to preempt overspending. This approach increases engagement and has been shown to reduce overdraft and credit usage for heavy users—critical as consumers face persistent inflation and unstable income cycles. 2. Real-Time Liquidity Without Long-Term Debt The value of flexible payments isn't the 'pay in four' model—it's liquidity without new revolving debt. Targeted solutions like Apple Pay Later, Rain and EarnIn, among many others, enable consumers to smooth cash flow during crunch moments—like rent week or unexpected bills—without locking them into interest-bearing debt cycles. These tools are particularly effective among hourly and gig workers navigating irregular pay schedules, offering an alternative to high-cost BNPL fintechs or payday loans. 3. Embedded Credit Intelligence, Not Just Monitoring Credit Karma and Experian Boost were early to personalize credit tracking. But newer entrants like Tomo and Grow Credit take it further by helping users build credit through everyday behaviors—such as paying Netflix or phone bills—without traditional borrowing. These tools are particularly relevant for thin-file or credit-invisible users, especially younger consumers or immigrants, who historically have limited access to mainstream credit. 4. Hyper-Personalized Financial Guidance At Scale Financial literacy platforms like Cleo and Albert are replacing generic advice with AI-powered, hyper-personalized coaching. By analyzing income, expenses, and behavioral patterns, they deliver timely nudges and interventions—like recommending when to pause spending or renegotiate bills. Some, like Savvy Ladies, are tackling systemic gaps by offering specialized content for underserved groups, including women and minorities. 5. Automation That Drives Intentionality, Not Apathy Automation alone doesn't create change—but intentional automation does. Apps like Qapital and Monarch Money tie savings triggers to behavioral goals, like rounding up for every workout or saving when users don't order takeout. These micro-behaviors build financial confidence and drive habit formation—key factors in sustaining long-term resilience, especially in high-cost environments. As tariffs loom and the cost of living spikes—from groceries to school supplies—millions of Americans are one unexpected expense away from deeper debt. This isn't the time for flashy features. It's time for fintech and traditional financial services providers alike to step up and deliver real economic utility. This is about resilience, not convenience. The best fintech players aren't offering more credit—they're offering better control and the ability to utilize relationships and credit that consumers already have. They're giving consumers the power to break purchases into manageable chunks on their existing bank cards, automate smarter money moves, and stay ahead of financial stress without sinking into interest-laden traps, laid by predatory consumer lenders. In a landscape where fintech lenders are racing to saddle Americans with more debt—prioritizing fees and interest over financial outcomes—many consumers are being pushed into a trap with no clear way out. Responsible fintech players are positioned to rewrite the rules—no credit pull, no revolving debt, no hidden fees and no gimmicks. Just intelligent, accessible tools that meet people where they are and help them move forward. The most forward-thinking fintechs aren't exploiting vulnerable consumers—they're proving that helping people make smarter financial choices isn't just good ethics, it's better business than bleeding them dry with hidden fees and revolving debt. This is more than a market opportunity—it's a mandate. With consumers bracing for price hikes and growing debt burdens, fintech must step up to reimagine the future of consumer finance.
Forbes
12-04-2025
- Business
- Forbes
AI-Driven Fraud Demands Modern Identity Verification
Finger print Scanning Identification System. Biometric Authorization and Business What are the core security challenges organizations currently have when protecting their customers and users against fraud? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world. Answer by Catherine Porter, Chief Business Officer at Prove, on Quora: As fraud attacks become increasingly sophisticated, organizations face significant vulnerabilities in their security systems. Fraudsters can now leverage AI to execute large-scale attacks such as account takeovers, identity fraud, and deepfakes. According to research from PYMNTS Intelligence, 83% of companies reported being targeted by cybercriminals using tactics like phishing, deepfakes and hacking, with 66% of businesses expecting these risks to rise. This surge highlights how fraudsters are no longer relying solely on brute force tactics or basic scams; they are refining their techniques to exploit system weaknesses, often targeting industries like finance and healthcare where personal data is highly valuable. The rapid evolution of these threats has left many organizations scrambling to respond in real-time, often without the necessary tools or expertise. Despite the escalating threat landscape, many organizations still rely on outdated identity verification methods, which fail to address the new vulnerabilities. Traditional identity verification methods, such as static passwords and knowledge-based authentication, are easy targets for attackers who exploit massive caches of stolen credentials circulating on the dark web. These methods leave organizations exposed and can erode customer trust when breaches occur. Outdated systems persist partly due to a reluctance to invest in modernization, whether because of budget constraints, rigid infrastructure, or a lack of awareness about the risks posed by new fraud tactics. For industries handling sensitive information, reliance on antiquated methods creates a ticking time bomb that fraudsters are eager to exploit. Adding to these challenges, companies face difficulty implementing robust identity verification measures without compromising customer experience. While solutions like multi-factor authentication (MFA) and biometric verification can serve as guardrails, they may also introduce friction that deters valuable users from engaging with services. For example, a user required to undergo multiple authentication steps might abandon their cart during an online purchase. Research from Morgan Stanley found that 77% of U.S. consumers surveyed cited convenience—in terms of comfort, speed, accessibility, and availability—as a key factor when making purchasing decisions. Organizations are now under constant pressure to simplify processes without sacrificing security, with factors like user behavior further complicating the security landscape. This question originally appeared on Quora - the place to gain and share knowledge, empowering people to learn from others and better understand the world.
