Gen Z is struggling financially more than Millennials did at their age: Study

A new study released last week by credit reporting company TransUnion shows that young members of Generation Z are struggling more financially today than Millennials were a decade ago.

The research includes a February survey of 614 Gen Z consumers between the ages of 22 and 24 and 623 Millennials who were between the ages of 22 and 24 a decade ago. This includes an evaluation of December 2023 credit bureau data for Gen Z consumers who were 22-24 years old, and December 2013 credit bureau data for Millennial consumers who were 22-24 years old at the time. Also includes data. The study also included interviews with Gen Z adults conducted between February and March 2024.

the study show Despite rising costs of living, especially amid high inflation, 22- to 24-year-olds today have lower incomes and higher debt-to-income ratios than 22- to 24-year-olds 10 years ago.

According to data from the fourth quarter of 2023, the average annual income for 22- to 24-year-olds is currently $45,493. But 10 years ago, 22- to 24-year-olds earned $51,852 a year, adjusted for inflation. 2013.

The debt-to-income ratio is also now higher than in 2013, from 11.76 percent to 16.05 percent.

The study shows that today’s increase in balances “reflects increasing inflationary pressures on Gen Z,” according to the report. Currently, the average credit card balance for a 22-24 year old is $2,834, whereas 10 years ago it was $2,248.

The study found that Gen Zers between the ages of 22 and 24 report feeling more stressed about their finances than Millennials who were 22 to 24 years old a decade ago. When asked how confident or stressed they are about their financial situation, 14 percent of Gen Z respondents said “I feel extremely stressed,” compared to 8 percent of Millennial respondents who said the same.

Similarly, 13% of Millennials said they were “very confident” about their finances 10 years ago, compared to 13% of Gen Z respondents who said they were “very confident” about their financial situation. was only 8%.