05.11.2024
Younger Europeans struggle to keep up with rising costs
Europe’s economic recovery has been uneven across generations, with younger consumers facing greater financial challenges than their older counterparts. Intrum’s latest European Consumer Payment Report (ECPR) reveals that while many Boomers are navigating economic pressures successfully, Millennials and Gen Z consumers are struggling to keep up with rising costs, often turning to credit to bridge the gap.
Younger generations hit hardest by financial pressures
While Europe’s economy shows some signs of recovery, the burden of the high cost of living has weighed disproportionately on younger consumers.
The ECPR reveals that nearly one-third (30%) of Millennials are unable to pay their bills on time, compared to just 16% of Boomers. For Millennials and Gen Z, financial stability remains a challenge, as these generations experience more intense financial strain despite early indications of economic improvement.
The discrepancy highlights a generational divide, with older generations often better equipped to manage financial obligations. Meanwhile, younger consumers are more likely to struggle with meeting monthly commitments, indicating a significant gap in economic resilience across age groups.
Social media and digital platforms driving overspending
Intrum’s findings also highlight a distinct pattern in spending behaviour, with social media and e-commerce platforms driving overspending among younger consumers.
Digital technology has transformed shopping behaviour, and social media platforms now play a pivotal role in influencing purchasing decisions. Younger adults, in particular, are more susceptible to impulse buying and overspending, often prompted by targeted ads and the desire for instant gratification.
This trend presents a double-edged sword: while digital platforms offer convenience and variety, they also increase exposure to e-commerce marketing strategies that can lead to excessive spending. For many young consumers, these online influences contribute to financial instability, making it more difficult to manage monthly bills and avoid debt.