TransUnion Report Takes Consumers’ Pulse, Finds Gen Z, Millennials Upbeat but Gen X, Boomers Concerned
- Roy Urrico
- 3 hours ago
- 3 min read
By Roy Urrico
Finopotamus aims to highlight white papers, surveys and reports that provide a glimpse as to what is taking place and/or potentially impacting credit unions and other organizations in the financial services industry.
Gen Z is most optimistic about their financial future, while Gen X is facing the greatest affordability concerns, according to TransUnion’s Consumer Pulse Study for the second quarter of 2026. Overall, the Chicago-based information and insights company found that 55% of consumers are optimistic about their household finances over the next 12 months, which remains unchanged from last year; and financial pessimism declined to 23%, down from an all-time high of 27% in second quarter of 2025.
The findings, which are based on a survey of 2,996 U.S. adults conducted between April 23 and May 11, 2026, revealed the youngest generations are leading the way in optimism with nearly seven in 10 (68%) Gen Z consumers and 63% of millennials optimistic about their future finances. Baby Boomers remain the most pessimistic generation at 28%, though they also experienced the greatest year-over-year (YoY) drop from 36% in second quarter of 2025.
“Affordability will continue to shape financial behavior and influence credit outcomes. Consumers continue to need credit to make major purchases like homes and autos, as well as to manage their everyday cash flow, and credit unions and community banks are an important source of that credit,” Charlie Wise, head of global research and consulting at TransUnion, told Finopotamus. “Lenders can better support consumers by understanding their evolving needs and unique credit circumstances; analytic tools such as alternative and trended credit data, along with behavioral insights, can help drive better outcomes for both consumers and lenders.”
Optimistic Consumers and Other Takeaways
“The majority of consumers remain optimistic about their future finances, despite continued concerns in many households driven by elevated inflation levels and energy prices,” said Wise.
Other highlights include:
Even as a majority of consumers remain optimistic about future finances, inflation continues to be the dominant pressure on household finances. More than eight in 10 (83%) consumers ranked it among their top three household financial concerns, up two percentage points from a year ago. Recession fears ranked second at 51%, followed by interest rates and housing prices (rent or mortgage), which were both at 42%. While all generations cited inflation as a top concern, Gen X and Baby Boomers reported higher levels of concern than younger consumers.
Elevated inflation continues to shape consumer concerns. Across 13 spending categories, 80% of consumers ranked grocery prices as the top concern when it came to price increases, down slightly from 81% a year ago. Concern about gas price increases shows the greatest rise, up to 71% from 37% in Q1 2026 and 49% a year earlier.
Consumers also report declining affordability across key spending categories. When asked to rate spend categories by most to least affordable, they cited gas (54%), travel-related purchases (48%) and dining out (45%) as the least affordable.
Interest rate concerns continue to shape credit behavior. Among consumers who rank interest rates as a top three household financial concern, 31% plan to apply for or refinance credit in the next year, compared to 27% of all other consumers, which may indicate that consumers with interest rate concerns are potentially looking for refinance opportunities if interest rates drop.
Affordability and Credit Concern
“Affordability has become the defining issue shaping consumer finances today, yet consumers remain remarkably resilient,” said Wise. “Against a backdrop of ongoing pressure from inflation and higher everyday expenses such as filling up their gas tanks or dining out, consumers remain optimistic about their future finances and are less pessimistic than a year ago. Steady, low unemployment is supporting that confidence, even as wage gains are partially offset by higher prices.”
The Consumer Pulse Study shows that younger generations such as Gen Z and Millennials remain the most optimistic about their financial futures, noted Wise. “However, overall intent to apply for or refinance credit has declined year over year, falling from 33% to 28%, signaling a more cautious borrowing environment.”
Wise advised, “Financial institutions should take a segmented approach to engagement, recognizing that credit needs and product preferences vary meaningfully by generation. While Gen Z and Millennials are more open to exploring new credit, Gen X consumers are more selective; however, when they do seek credit, they show a stronger preference for credit cards over other products.”
