Pittsburgh, Pennsylvania – Generation Z is facing economic challenges that are hitting them harder than previous generations. Compared to millennials, Gen Z is grappling with higher prices, increased housing costs, larger student loan debts, and overall more financial burdens. An analysis of Bureau of Labor Statistics data by The Washington Post reveals that Gen Z is spending more on essential items compared to millennials at the same age.
Although Gen Z workers are more likely to attend college, hold jobs, and earn higher incomes than millennials did, they are also facing significant financial struggles. Housing costs for Gen Z have increased by 31% after adjusting for inflation, while expenses for items such as car insurance and health insurance have surged as well.
The financial impacts of the pandemic have been especially harsh for Gen Z, with rising inflation and interest rates creating a challenging environment for this generation. High levels of debt, including credit cards, car loans, and mortgages, are weighing heavily on Gen Z members, leading to concerns about their financial futures.
One example is Sarah Martin, a 21-year-old from Pittsburgh, who found herself accumulating credit card debt due to impulse purchases and unexpected expenses. As a result, she now faces the daunting task of paying off around $8,000 in debt while living with her parents and pursuing a career in medical coding.
The financial struggles of Gen Z may also be affecting their political views, as evidenced by President Biden’s challenges in connecting with younger voters who cite inflation as a top concern. According to a recent survey, only 32% of voters under 30 expressed support for Biden in the upcoming election.
Overall, Gen Z is confronting a unique set of financial obstacles that are shaping their experiences as they enter adulthood, with implications for their future financial stability. Rising housing costs, increasing debt levels, and economic uncertainties are all factors contributing to the challenges faced by this generation.
