Young people in Gen Z are having a harder time financially now than Millennials did 10 years ago, as per a recent study from TransUnion, a credit reporting agency.
The study involved a survey of 614 Gen Z consumers aged 22-24 and 623 Millennials who were the same age 10 years ago, along with credit bureau data from December 2023 for Gen Z consumers in that age group, and data from December 2013 for Millennial consumers at that age. It also included interviews with Gen Z adults in February-March 2024.
The study shows Even with the rising cost of living, particularly during high inflation, 22-24-year-olds today have lower incomes and higher debt-to-income ratios than their counterparts a decade ago.
Currently, 22-24-year-olds make an average of $45,493, but when adjusted for inflation, those same young adults a decade ago were making $51,852.
The debt-to-income ratio is also higher today at 16.05 percent compared to 11.76 percent in 2013.
The study shows that higher balances today indicate increased inflationary pressures on Gen Z. The average credit card balance for 22-24-year-olds today is $2,834, whereas it was $2,248 a decade ago.
The survey revealed that 22-24-year-olds in Gen Z are more stressed about their financial situation than Millennials were 10 years ago. Fourteen percent of Gen Z respondents said they are 'extremely stressed out,' compared to 8 percent of Millennials who said the same a decade ago.
Similarly, only 8 percent of Gen Z respondents said they're 'extremely confident,' compared to 13 percent of Millennials who felt 'extremely confident' about their financial situation 10 years ago.
