A recent survey by the credit reporting organization TransUnion found that younger members of Gen Z are facing worse financial hardships than Millennials were ten years ago.
The report comprises a poll of 614 Gen Z consumers (ages 22–24) and 623 Millennials (ages 22–24) from February of last year.
It comprises an evaluation of credit bureau data from December 2023 pertaining to Gen Z consumers, or those aged 22 to 24, as well as data from December 2013 pertaining to Millennial consumers, or those aged 22 to 24 at the time.
Adult Gen Z participants were interviewed for the study in February and March of 2024.
According to the study, even with rising living expenses, particularly in the face of strong inflation, 22–24-year-olds today earn less money than they did ten years ago, and their debt–to-income ratios are higher.
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According to Q4 2023 data, the average income for individuals aged 22 to 24 is $45,493. However, Q4 2013 data shows that, after accounting for inflation, 22–24-year-olds were making $51,852 ten years ago.
The debt-to-income ratio has likewise increased from 11.76 percent in 2013 to 16.05 percent as of this writing.
The study states that the analysis shows that greater balances today “reflect higher inflationary pressures on Gen Z.” It was $2,248 10 years ago, but today’s average credit card balance for individuals aged 22 to 24 is $2,834.
In comparison to Millennials who were in the same age range 10 years earlier, Gen Z respondents (ages 22 to 24) to the study say they feel more anxious about their financial status.
In response to a question on their level of confidence or stress regarding their financial status, 14% of Gen Z respondents describe themselves as “extremely stressed out,” while only 8% of Millennial respondents describe a similar feeling from 10 years earlier.
Comparably, only 8% of Gen Z respondents describe themselves as “extremely confident,” whereas 13% of Millennials say the same about their financial status ten years ago.
