Major Research Reveals Nearly Two-Thirds of Gen Z Lack Emergency Financial Reserves
In the ever-evolving financial landscape, a recent study sheds light on the financial habits of different generations in Austria. The study, conducted by Credit One Bank, reveals that Generation Z Austrians are the least prepared financially, with nearly two-thirds having no emergency savings. This is almost double the amount of Baby Boomers.
Among students, the figure rises to 70%. The lack of financial reserves for unforeseen expenses is a concerning trend, as many young Americans turn to credit cards when unexpected expenses arise.
Interestingly, a gender-specific trend is evident: women are more likely to use credit cards in an emergency than men (44% vs. 36%). This trend is particularly evident among 18- to 29-year-olds, with 72 percent planning to build a financial cushion in the near future.
The study also found that 70 percent of 18- to 34-year-olds in Austria and Germany have used fast online lenders like Klarna. On platforms like TikTok and Instagram, young people share their experiences with Klarna and similar payment providers and openly display their debts.
The average debt amount for women using fast online lenders is 779 euros, and for men, it is 425 euros. Almost half of Austrians have less than 2,000 euros, and one-fifth have less than 500 euros available.
While the study did not provide information on the financial situation in Austria, another report, the TeamBank-Liquidity Barometer 2025, shows that many Austrians have few financial reserves for unforeseen expenses. However, the report also indicates that 67 percent of respondents plan to build financial reserves for special purchases in the next 12 months.
The continued importance of cash across all age groups in Europe highlights a cautious approach toward electronic payments and reliance on cash as a financial fallback. This might indicate less dependence on credit cards among younger groups in Austria, though direct data on credit card reliance is missing.
In the Euro area, young adults tend to keep cash reserves at home as a financial safety net for unexpected events. The pandemic increased this behavior in 2022, reflecting a sense of emergency preparedness. While the trend softened somewhat by 2024, the preference for cash remains significant, partially due to concerns over digital payment vulnerabilities.
Austria’s stable economy and well-developed banking sector providing access to finance and credit could support the use of credit cards and financial products across generations. However, concrete generational credit card usage data and cross-country comparisons on this point are not available in the provided sources.
Despite the lack of specific data, it's clear that financial preparedness is a pressing concern for young Austrians. As the trend of using fast online lenders like Klarna continues, it's crucial for individuals to prioritise building emergency savings and making informed financial decisions.
- Personal-finance awareness seems crucial for young Austrians, as a study shows that 70% of Generation Z Austrians have no emergency savings, while 70% of 18- to 34-year-olds have utilized fast online lenders like Klarna.
- The finance industry, particularly personal-finance management, should focus on helping younger generations in Austria, given the trend of reliance on fast online lenders and the worrying statistic of two-thirds of Generation Z Austrians with no emergency savings.
