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Gen Z Suffering Low Income and Higher Debt-to-Income Ratio than Millennials

A new study reveals that the current youngest generation, Generation Z, is facing greater financial struggles due to low income and a higher debt-to-income ratio than Millennials did at the same point in their youth.

As reported by Breitbart, the study from consumer credit reporting agency TransUnion surveyed 614 members of Gen Z, also known as “Zoomers,” between the ages of 22 and 24, comparing their findings to a similar survey of 623 Millennials who were between the ages of 22 and 24 ten years ago.

In the fourth quarter of 2013, Millennials on average were making an income of roughly $39,394; when adjusted for inflation, the income of the average Millennial around that time was $51,852. By contrast, Zoomers in the fourth quarter of 2023 were making an average income of $45,493, over $7,000 less than what Millennials made ten years ago. In 2013, Millennials had an average debt-to-income (DTI) ratio of 11.76%; Zoomers today have a DTI ratio of 16.05%.

TransUnion also revealed that Millennials had lower credit card balances on average. In 2013, the average credit card balance for a Millennial was $1,708; when adjusted for inflation, it amounts to $2,248. Today, the average Zoomer’s credit card balance is slightly higher, at $2,834.

In 2013, the average auto loan balance for a Millennial was $14,468, or $19,043 when adjusted for inflation. In 2023, the average auto loan balance for a Zoomer is $21,767.

These findings suggest that the economy has not gotten better for young Americans, especially in the aftermath of the recession caused by the outbreak of the Chinese Coronavirus. Polls also suggest that dissatisfaction with the economy could lead to a massive plunge in youth support for Joe Biden, with more young voters than ever before allegedly considering voting for former President Donald Trump in the November election.

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About Eric Lendrum

Eric Lendrum graduated from the University of California, Santa Barbara, where he was the Secretary of the College Republicans and the founding chairman of the school’s Young Americans for Freedom chapter. He has interned for Young America’s Foundation, the Heritage Foundation, and the White House, and has worked for numerous campaigns including the 2018 re-election of Congressman Devin Nunes (CA-22). He is currently a co-host of The Right Take podcast.

Photo: STURTEVANT, WISCONSIN - MAY 08: U.S. President Joe Biden arrives for an event at Gateway Technical College’s iMet Center on May 08, 2024 in Sturtevant, Wisconsin. During the event, Biden spoke about Microsoft’s plan to invest $3.3 billion to build an artificial intelligence data center in the state. (Photo by Scott Olson/Getty Images)