Young members of Generation Z today face more financial hardship than Millennials their age did 10 years ago, according to a new study published last week by credit reporting agency TransUnion.
The study includes a survey conducted in February with 614 Generation Z consumers, aged 22 to 24, and 623 Millennials, who were aged 22 to 24 10 years ago. Includes an assessment of December 2023 credit bureau data from Gen Z consumers ages 22 to 24 and includes December 2013 data from Gen Y consumers who were ages 22 to 24 at the time. The study also includes interviews with Gen Z adults between February and March 2024.
The study show that even with the increase in the cost of living, especially in a context of high inflation, young people between the ages of 22 and 24 today have lower incomes and higher debt-to-income ratios than young people between the ages of 22 and 24 years ago ten years.
Today, 22- to 24-year-olds earn an average of $45,493, according to data from the fourth quarter of 2023. But adjusted for inflation, 22- to 24-year-olds ten years ago earned $51,852, according with data from the fourth quarter of 2013.
The debt-to-income ratio is also higher today than in 2013 – 16.05 percent compared to 11.76 percent.
The study indicates that higher balances today “reflect higher inflationary pressures on Generation Z,” according to the report. The average credit card balance for 22- to 24-year-olds today is $2,834, but ten years ago it was $2,248.
In the survey, young people from Generation Z, between the ages of 22 and 24, report being more stressed about their financial situation than Millennials, who were between the ages of 22 and 24 ten years ago. Asked how confident or stressed they feel about their financial situation, 14% of Gen Z respondents say they are “extremely stressed,” compared to 8% of Millennial respondents who say the same, when describing how they felt ten years ago.
Similarly, just 8% say they are “extremely confident” among Gen Z respondents, compared to 13% of Millennials who say they were “extremely confident” ten years ago about their financial situation.
This story originally appeared on thehill.com read the full story
