Generation Z earns lower income compared to Millennials at the same age
The Earnings Gap Between Generation Z and Millennials
Income Disparity
A recent study has shown that members of Generation Z are earning less than millennials did a decade ago at the same age. In the fourth quarter of 2023, Generation Z individuals aged 22 to 24 had an average income of $45,493, while a decade ago, adjusted for inflation, millennials at the same age were earning $51,825. This significant difference can be attributed to the fact that Generation Z has come of age during a period marked by a 32% increase in cumulative inflation since 2013.
Financial Stress
The financial pressures on Generation Z are evident, with 14% of respondents reporting feeling “extremely stressed” about their financial situation. This is a stark contrast to millennials a decade ago, where only 8% expressed similar levels of financial stress. The prevailing high inflation rates, despite the Federal Reserve’s efforts, have contributed to this heightened anxiety among the younger generation.
The use of credit cards has emerged as a coping mechanism for Generation Z, with over a third of respondents viewing credit cards as the most valuable credit product to bridge their financial gaps.
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