A high credit limit may be convenient, but it makes overspending easy. 

Answer: $14,195

Questions:

• A credit limit is the maximum you can borrow with a credit card. What are the pros and cons of having a card with a high credit limit?
• Why do you think credit limits tend to increase with age (up to a point)?
• Experts recommend using less than 30% of your available credit. Based on that guideline, what is the maximum balance for the average Gen Z card holder?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Experian):

"While lenders appear to be accommodating the additional demand for credit for other generations, Generation X, appears to be in a squeeze. Although their average balances grew by 4.8% in 2024, collectively they've only received 4.9% in additional credit—perhaps an indication that they've hit a ceiling."

About the Author

Kathryn Dawson

Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.

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