A recent study from TransUnion, a consumer credit reporting agency, revealed that Gen Z adults in the 22-24 age range are facing more financial challenges compared to Millennials in the same age group a decade ago. The study surveyed 614 Gen Z adults and 623 Millennials to gather insights on income and debt ratios.
During the last half of 2013, Millennials were making an income of $39,394, which when adjusted for inflation was around $51,852. In contrast, Gen Z adults in 2023 were earning $45,493. The study also found that Millennials had a debt-to-income ratio of 11.76% in 2013, while Gen Z adults had a higher ratio of 16.05% in 2023.
After deducting debt-to-income payments, Millennials had an income of $35,808 in 2013, which when adjusted for inflation was $37,124. Gen Z adults in 2023 had an income of $40,200 after similar payments were made. Regarding credit card balances, Millennials had $1,708 in 2013, adjusted for inflation to $2,248, while Gen Z adults had $2,834 in 2023.
In terms of auto loan balances, Millennials had an average balance of $14,468 in 2013, adjusted for inflation to $19,043, while Gen Z adults in 2023 had $21,767. The study also highlighted that younger voters are showing interest in former President Donald Trump for the upcoming 2024 election, with high interest rates and inflation under the Biden administration contributing to increased credit card debt among Gen Z adults.
