Gen Z is getting hit hard by inflation

Gen Zers are going into debt at alarming rates – much faster than Millennials did.

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. Gen Z is in the financial trenches. A new study from credit reporting agency TransUnion found those in their early 20s are earning less, have more debt and see higher delinquency rates than Millennials did at their age. The findings outline the credit usage of 22 to 24 year old Gen Zers. Millennials who fell in that age range in 2013 were asked about their credit usage during that period. Gen Zers are defined as those born between 1995 and 2012, and Millennials as those born between 1980 and 1994. Gen Zers, like Millennials, have had to deal with economic calamities early in their careers. For Gen Z, it was the Covid-19 pandemic. For Millennials, it was the global financial crisis. But the current generation of early 20-somethings have another challenge: sticky inflation that’s driven up prices of everything from gas at the pump to food at the grocery store. Interest rates perched at a 23-year high have also hiked borrowing rates for auto loans, student loans and mortgages.