Linkedin
Facebook
Twitter

Everyday Finances

These two generations most at risk financially might surprise you

May 09, 2023

MirandaMarquit_9483sm-e1587573873989.webp

Written by

kim-rotter.jpg

Reviewed by

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. 

SOC_Generations at most risk financially_Generations most at risk with inflation_V1-R1_1280x720_01.jpg


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.

SOC_Generations at most risk financially_Generations most at risk with inflation_V1-R1_1280x720_02.jpg

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: 

  • Millennial and Gen Z’s combined share of debt resolution membership was up to 44% in 2022, from 23% in 2019.

  • 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.

Author Information

MirandaMarquit_9483sm-e1587573873989.webp

Written by

Miranda Marquit is an award-winning freelance writer and podcaster who has covered various financial topics since 2006. Her work has appeared in numerous media outlets, and she is frequently asked to host workshops and appear on panels on topics related to financial wellness. She is the co-host of the Money Talks News podcast and a consumer finance advocate and spokesperson for moving hub HireAHelper.

kim-rotter.jpg

Reviewed by

Kimberly is Achieve’s senior editor. She is a financial counselor accredited by the Association for Financial Counseling & Planning Education®, and a mortgage expert for The Motley Fool. She owns and manages a 350-writer content agency.

Linkedin
Facebook
Twitter

Related Articles

SOC_Dollars-&-Sense-home-page-banner-image_1280x720_01.jpg

Expecting a check from the IRS and wondering what to do with it? Check out this inspo for smart ways to use your tax refund.

8.jpg

Spoiler alert: APR is just how much your loan costs for a year. Find out here how it differs from your interest rate.

SOC_WTFINANCE is a debt trap_1280x720_01.jpg

These subtle (and not so subtle) red flags could be signs that you’re falling into a debt trap. Read more.