Research &
Thought Leadership
Understanding Gen Z
Synchrony’s 2018 Research Findings
June 2018
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Planning Online Immersion Meet-Ups Online Survey
Roadshow Gen Z
Presentations
SEPTEMBER 2017 OCTOBER 2017 OCTOBER/NOVEMBER 2017 DECEMBER 2017 MARCH 2018
Gen Z Online Immersion
• 75 Gen Z recruits
• 14-day online immersion
• Ages 16-22
• October 7-20, 2017
Meet-Ups
• 16 Gen Z recruits
• In-home interview, followed by
shopalong
• 4 recruits in each of 4 regions:
NYC metro, Atlanta, Indianapolis,
Orange County
• 2 weekends in 2 cities: October
28-29 & November 11-12, 2017
4,012 Online Survey respondents
• Gen Z: 2,009
• Young Millennials: 501
• Old Millennials: 501
• Gen X: 500
• Boomers: 501
• Census balanced based on region
and gender per generation group
• Collected between December 15,
2017 and January 2, 2018
• LOI 15 minutes (median)
• Gen Z respondents weighted
based on age and gender
Parents Online Immersion
• 12 parents of teen Gen Z recruits
• 3-day online immersion
• Parents of Gen Z ages 16-18
• October 14-16, 2017
Methodology Summary
2
QUALITATIVE QUANTATATIVE
References to data sourced from external resources are cited with an asterisk (*) with full source information provided in Appendix.
All data sources without an asterisk is sourced from Synchrony’s original research.
All product names, logos, and brands are property of their respective owners. All company, product and service names used in
this presentation are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Why Focus On Gen Z?
3
$44
billion $143
billion
Collective Gen
Z purchasing
power
Collective Gen
Z purchasing
power, factoring
in earned
income
Gen Z indirect
spending
power, due to
influence on
household
purchasing
decisions*
• Gen Z is 26% of the U.S. population,
larger than Millennials by 3 million*
• Becoming the fastest-growing
generation in the workplace and the
marketplace in next 5 years*
• The most ethnically and racially
diverse generation in U.S. history
(48% non-Caucasian vs. 44%
Millennials)*
$333
billion
*See Appendix
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Highlights of Generational Differences
4
Global/National Event | Descriptors | Innovation*
1965 – 1982
36 – 53
Fall of Berlin Wall
Gulf War
AIDS
Independent
Free Agents
Internet, MTV
Mobile Phone
1983 – 1994
24 – 35
9/11 Attacks
Optimistic
Collaborative
Confident
Tech Savvy
Google, Facebook
Smartphone
1995 - 2004
14 – 23
Great Recession
Realist
High Expectations
Digital Natives
Apps
Social Games
Tablet Devices
BORN 1946 – 1964
AGE 54 – 72
Vietnam
Moon Landing
Civil/Women’s
Rights
Experimental
Innovators
Hard Working
Personal
Computers
*See Appendix
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
SUMMARY: 5 Ways Gen Z Differs From Millennials
1. A delay in adulting and shift in parenting approach post-
recession has led to Gen Z being quite naïve about financial
matters
2. Less intention to own traditional financial products (except
student loans) but highly connected to digital payment tools.
3. Prefers to shop and purchase in brick-and-mortar stores but
browses online.
4. Focuses more on everyday value and discounts vs. rewards
programs and lacks the understanding of how to garner value
from loyalty programs.
5. Feels less guilty about being connected to their devices
5
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Research &
Thought Leadership
1. Naïve About Financial Matters
Gen Z dreams big for its future but has little
understanding of what it will take besides college loans
6
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Effects of Great
Recession color
Gen Z’s outlook on
financial products
7
“Well, we went through a
bankruptcy…8 years ago. So yeah,
that was not good… Rather than
$20,000 I'll put $5,000 [on credit
cards now].”
– Robby’s mother, Orange County
“[Learned from my mother] don’t
get a credit card… Maybe I'll
probably get one when I'm older
and more responsible, probably,
but I don't want to get one now.”
– Robby, Age 17, Orange County
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Much of Gen Z’s
exposure to financial
products is delayed
8
“[My parents] definitely have groceries
for me, they take me to dinner. I get
some extra money here and there. I
don’t have to pay rent…I know when I
get to a certain point, I am going to have
to pay my car insurance and health
insurance and stuff like that.”
– Brooke, Age 18, Indianapolis
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
By paying for their credit card bill, parents may be
stagnating Gen Z’s financial maturity
9
Gen Z under
age 18 with use
of a credit card:
Gen Z pays
the full balance
Gen Z sometimes/
typically contributes
Parents pay
the full balance
Who pays for
the credit card
bill?
30% 29% 41%
30%
70%
Has access to
credit card
No access
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
A majority of Gen Z plan
to own a house (97%)
and a car (92%)*
10
27% 43%
48%
Gen Z
Younger
Millennials
Older
Millennials
R E S I D E N T I A L M O R T G A G E
25% 40% 47%
A U T O L O A N
But few expect a mortgage or
auto loan in their future
Likelihood to Own in Future (%4-5)
*See Appendix
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Research &
Thought Leadership
2. Less Intention to Own Traditional
Financial Products
(Except student loans)
11
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Besides student loans, Gen Z’ers expectation of owning
financial products are lower than Millennials and Gen X
12
Likelihood of owning or using in the future (% Agree)
27
0%
20%
40%
60%
80%
100%
Residential Mortgage
18
Home Equity Loan or
Line of Credit
16
Pay Day or Cash
Advance Loan
25
Auto Loan
41
0%
20%
40%
60%
80%
100%
Student Loans
24
Personal Loans
11
Title Loan
11
Online installment
loans
Gen Z
Young Millennials
Old Millennials
Gen X
Boomers
82% intend to go
to college*
*See Appendix
©2018 Synchrony. All rights reserved. No reuse without express written consent from Synchrony.
Share of students graduating with debt has
increased:
• 66% of college seniors in 2011-2012 took out a loan
• 50% of college seniors in 1989-1990 took out a loan*
Gen Z: College, student loans and debt
$9,450
$29,400
$37,200
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1993-Gen X 2012-Millennials 2016 Gen Z
Avg. student
debt at
graduation*40
41
38
32
26
0%
20%
40%
60% % Enrolled in College*
G
e
n
Z
Y
o
u
n
g
M
ill
e
n
n
ia
l
G
e
n
X
B
o
o
m
e
r
O
ld
e
r
M
ill
e
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ia
l
More Gen Z are enrolled in college than
Boomers in 1970. College enrollment has
steadily increased over the years and
genera
