Tikkie, Zalando, Klarna: How young people try to keep a grip on their finances

Today's young people grapple with a fragmented financial landscape that makes managing money more challenging than ever. A simple bank balance of, say, 74 euros no longer represents a clear spending limit. This figure is merely an approximation, as it doesn't account for outstanding amounts in payment apps like Tikkie, pending requests on WhatsApp, or money owed to or by the individual.

Adding to the complexity are the proliferating "buy now, pay later" (BNPL) services, such as Klarna, Billink, and Riverty. These allow purchases to be received immediately, with payments deferred or split over time. Furthermore, refunds for returned items, like those from online retailers such as Zalando, add another layer to the financial equation, meaning money is expected but not yet received.

For adults, keeping track of such a dispersed financial overview can be difficult. For young people transitioning into adulthood, this "maze" is even harder to navigate. Responsibilities like personal insurance, taxes, and rent accumulate, while the clarity of spending is obscured by the sheer volume of transactions that may or may not have been settled.

This generation of teenagers and young adults are the first true "online consumers," born into a world where smartphones are ubiquitous. From childhood, they have been accustomed to in-game purchases, social media interactions, and online banking. Money is no longer tangible coins or bills but digital pixels in a banking app. Their financial lives, saving, investing, paying, borrowing, consuming, gambling, and returning goods, play out primarily on the small screen.

This screen also serves as a conduit for thousands of companies and marketers targeting young consumers. An endless stream of advertisements on platforms like Snapchat, TikTok, and Instagram creates constant temptation. Apps from retailers like AliExpress, Shein, and Temu gamify consumption with loyalty programs, discounts, and BNPL options. The growing number of influencers promoting products, sometimes on unclear grounds, further fuels this environment. The allure of instant gratification is immense, particularly for young people whose developing brains are more sensitive to short-term rewards.