Hedgeye Podcasts Hedgeye NexGen | Episode 28 | Gen Z Expenses
Dec 24, 2025
In this lively discussion, Matt Cooper, a macro analyst and Hedgeye contributor, dives into the financial struggles of Gen Z. He and Ryan Ricci highlight how soaring expenses, from student loans to rising rents, leave young consumers feeling financially trapped. They break down typical expenses for a 30-year-old, showing the stark reality of heavy debt burdens. The duo also warns against high-interest credit debt and offers strategies to escape the debt trap, emphasizing the need to prioritize payments and avoid risky investments for quick fixes.
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Debt Replaces Wages For Gen Z
- Gen Z carries heavy recurring debt that effectively replaces wage growth and reduces happiness.
- Debt plus rent can consume ~64% of post-tax income for a typical 30-year-old making $60K.
Student Loans Fuel Tuition Inflation
- Federal student loans dominate and function as a “fudge factor” that enables rising tuition.
- Colleges and the federal government capture the benefit while borrowers shoulder long-term interest costs.
AI Is Compressing Entry-Level Opportunities
- AI adoption is reducing entry-level hiring in white-collar fields, worsening job prospects for new graduates.
- That compounds Gen Z's financial strain by making it harder to repay loans and gain income growth.