A recent study conducted by TransUnion, a consumer credit reporting agency, has shed light on the financial challenges facing Generation Z (Gen Z) compared to their Millennial counterparts.

The study surveyed 614 Gen Z adults aged between 22-24 and compared their financial situation to that of 623 Millennials who were in the same age group a decade ago. The findings indicate that Gen Z adults are grappling with lower incomes and higher debt-to-income ratios than Millennials did at a similar age.

According to the data, during the last half of 2013, Millennials had an adjusted income of $51,852 when adjusted for inflation. In comparison, Gen Z adults in 2023’s last quarter had an income of $45,493. Furthermore, Millennials had a debt-to-income (DTI) ratio of 11.76 percent during 2013’s last quarter, while Gen Z adults faced a higher DTI ratio of 16.05 percent in 2023.

After factoring in debt-to-income payments, Millennials’ income during 2013’s last quarter was $37,124 when adjusted for inflation. Conversely, Gen Z adults in 2023’s last quarter had an income of $40,200 after DTI payments.

The study also revealed disparities in credit card balances and auto loan balances between the two generations. Millennials had a credit card balance of $1,708 in 2013’s last quarter, adjusted for inflation, while Gen Z adults had a higher credit card balance of $2,834 in 2023’s last quarter. Similarly, Millennials had an average auto loan balance of $19,043 when adjusted for inflation in 2013’s last quarter, while Gen Z adults had a higher average auto loan balance of $21,767 in 2023’s last quarter.

The study comes amid a shifting political landscape, with recent polls indicating varying levels of support among younger voters for former President Donald Trump and President Joe Biden in the upcoming 2024 presidential election.