Gen Zers over-index toward frequent debit card use, and as a group are very concerned about inflation, according to Interac-commissioned research.

Hill+Knowlton Strategies used the Leger Opinion online panel to survey 1,751 Canadians over the period of April 12-17, 2023, including 250 Gen Zs.

And the numbers reveal Gen Z is more likely (70%) to frequently use debit, compared to 55% of non Gen Z Canadians polled.

According to the numbers, 75% of Gen Z respondents agree that the cost of everyday essentials is influencing their ability to manage finances, as is the rising cost of inflation (78%).

Canadians overall appear to be shifting their spending in response to an inflationary environment, the report notes. Year-over-year, Interac transaction data shows an increase in the number of transactions with Interac Debit at grocery stores and supermarkets as average basket sizes have decreased.

Discount merchants are seeing greater transaction growth than their premium counterparts, suggesting Canadians are shifting where and how they spend to stretch their dollars further.

“While we are seeing the economic environment shape purchasing decisions, essential spending continues and consumers are leaning on their own money as evidenced by the year-over-year growth in Interac Debit (5%) and Interac e-Transfer (11%) volumes,” says William Keliehor, chief commercial officer, Interac.

As the demographic enters the workforce and takes on financial firsts like purchasing groceries, paying rent or saving for a vacation, the survey numbers also reveal that a large number of Gen Zs are stressed (42%) and even overwhelmed (31%) when it comes to their financial situations.

And according to Interac data, 37% of Gen Zs agree that financial advice would be more beneficial if it focused on the emotional aspect of managing your money, compared with only 21% of Boomers surveyed.

While older Canadians stick with traditional sources for financial advice, such as financial advisors, Gen Zs were found most likely to seek out support from their immediate network like older family members (73%), siblings or cousins (20%) and friends (21%).