Millennials and Gen Z are feeling the most optimistic about their household finances in the next 12 months, according to results from TransUnion.

Older generations aren’t feeling too confident about their household finances, according to results from a TransUnion study.
But Millennials and Gen Z are feeling good, likely thanks to the pay bumps they’ve seen over the last year.
Across the board, Americans are concerned about inflation.

With inflation at a 40-year high and gas prices skyrocketing, some Americans are not feeling too hopeful about their household’s financial situation in the upcoming months.

But Gen Z and millennials are powering through.

New results from TransUnion’s Consumer Pulse study show that younger generations are feeling the most optimistic about their household finances in the next 12 months. The results come from a survey of roughly 2,700 adults from May 12 to May 19.

Overall, 55% of Americans are feeling good about where their household finances stand in the next 12 months. 

According to the study, 70% of millennials and 66% of Gen Z are optimistic about their household finances in the next 12 months, the two highest shares among generations. For this report, generation years were “Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964.” The oldest Gen Zers in this study were born in 1995 per the report.

According to Charlie Wise, senior vice president and global head of research and consulting at TransUnion, this optimism could be because young workers may be reaping the benefits of pay raises from employers as they deal with the labor shortage and Great Resignation. Wise said that although they’re early in their careers and could be earning toward the “lower end of the pay scale,” Wise said those in their 20s and 30s and lowest-income consumers are some of the people who have seen large wage gains.

“They’re feeling more financially stable,” Wise said about young Americans. “They’re feeling like maybe they’re in a job that’s not quite as volatile.”

Only 39% of Baby Boomers said they are feeling optimistic about their finances. One reason could be because “many of these consumers are seeing their own retirement nest eggs potentially take a near-term hit,” Wise said. It includes Americans who are living on savings, depending on investment portfolios, and those living on fixed-incomes, Wise added. 

“These consumers don’t have a lot of the flexibility to absorb that quite the same way that active …read more

Source:: Business Insider

      

Gen Z and millennials are feeling optimistic about their finances — Gen X and boomers, not so much

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