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These two generations most at risk financially might surprise you
By Miranda Marquit
Published on May 09, 2023
Read time: 2 min
Dealing with inflation is never fun, and most of us are being hit hard right now at the checkout counter. If you’re a younger Millennial or part of Gen Z, you might not be surprised to learn that you’re among those most at risk as inflation soars.
Let’s take a look at some data that explains what could be going on.
Why are Millennials and Gen Z struggling?
I know I’ve struggled with debt in the past, but the signs are clear that Millennials and Gen Z are getting hit a bit harder. The Achieve Center for Consumer Insights points out that the salary bumps experienced by many during the “Great Resignation” were more likely to benefit people later in their careers—not newbies like those in Gen Z and younger Millennials.
On top of that, Millennials and Gen Z are more likely to be hit hard by the current affordable housing crisis and the rising cost of cars. Gen Z, especially, is feeling the pinch as they pay higher interest rates due to their shorter credit history. Millennials are also struggling, as many of them graduated into the Great Recession and weren’t in a position to take advantage of lower housing prices, plus they faced a tough job market.
So, what does this mean? Well, it means that Gen Z is most likely to be on the debt struggle bus, along with Millennials.
Millennials and Gen Z: debt resolution programs
The numbers make it clear that financial challenges weigh more on Millennials and Gen Z than on other generations.
Achieve’s data from members in the debt resolution program shows that:
Baby Boomers’ and the Silent Generation’s combined share, on the other hand, dropped to 23% in 2022 from 40% in 2019.
Gen X also saw an improvement, dropping to 32% of enrollment in 2022 from 37% in 2019.
With inflation bearing down harder on these generations than on others, it’s clear that Millennials and Gen Z will need more resources to help them deal with debt.