Gen Z is struggling financially with low income and higher debt-to-income ratios than Millennials did when they were their age, according to a recent study.
A study from TransUnion, a consumer credit reporting agency, which surveyed 614 Gen Z adults currently between the ages of 22-24, and 623 Millennials who had been between the ages of 22-24 ten years ago, found that Gen Z adults were facing a tougher situation financially that Millennials did years ago.
The study found that Millennials during the last half of 2013, or Quarter 4 (Q4) were making an income of around $39,394, adjusted for inflation. When adjusted for inflation, the income Millennials were making around that time came out to $51,852. This is compared to Gen Z adults during 2023’s Q4 who were making an income of $45,493.
During 2013’s Q4, Millennials were found to have a debt-to-income (DTI) ratio of 11.76 percent, while Gen Z adults had a DTI ratio of 16.05 percent during 2023’s Q4, according to the data.
