Recent research shows that Gen Z is struggling financially, with lower incomes and higher debt-to-income ratios than when Millennials were their age.
a study According to consumer credit reporting agency TransUnion, a survey of 614 Gen Z adults who are currently 22 to 24 years old and 623 Millennials who were 22 to 24 years old 10 years ago found that Gen Z adults turned out to be facing a more difficult situation. The economic situation that Millennials experienced a few years ago.
The study found that in the second half of 2013, or the fourth quarter of 2013, millennials earned about $39,394, adjusted for inflation. Adjusting for inflation, millennials earned $51,852 during that time. This compares to an adult Gen Z who had an income of $45,493 in the fourth quarter of 2023.
According to the data, the debt-to-income (DTI) ratio for millennials in the fourth quarter of 2013 was 11.76%, while the DTI ratio for Gen Z adults in the fourth quarter of 2023 was 16.05%.
The study also found that in the fourth quarter of 2013, Millennials earned $35,808 after paying down their debts to match their income. Adjusted for inflation, millennials earned $37,124 during this period. By comparison, her Gen Z adult income after DTI payments in the fourth quarter of 2023 was her $40,200.
TransUnion’s research also found that when it comes to credit card balances, Millennials have balances of $1,708 compared to $2,248 when adjusted for inflation. In the fourth quarter of 2023, a Gen Z adult’s credit card balance was $2,834.
The average car loan balance for Millennials in Q4 2013 was $14,468, or $19,043 adjusted for inflation. By comparison, his Gen Z adult car loan balance averaged $21,767 in the fourth quarter of 2023.
The survey found that in a recent poll, 48% of young voters between the ages of 18 and 34 said they would support voting for former President Donald Trump in the upcoming 2024 presidential election; The decision was made after it was shown that only 52% of respondents responded. Joe Biden.
High interest rates and rising inflation under the Biden administration have left many Gen Z adults with even more credit card debt.
