This figure contrasts with the 21% of Generation Z who spend the same percentage on debt and with the 21.6% of Generation X.
Additionally, 44.7% of millennials spend between 20 and 50% of their salary on debt payments compared to Generation Z, which spends 44.2%.
The report also highlights that 14.8% of millennials feel that their debts are out of control.
Although people believe that having a better job and therefore earning more money is enough to get out of debt, the study indicates that in reality the higher level of debt among young people is due to higher levels of consumption and life expectancy as well as poor financial planning.
The report indicates that one in five executives or company managers also spends more than 50% of their salary on debt.
“We believe that the problem of savings or debt is directly related to the amount of money and there is obviously a correlation, but one thing we have seen is that senior executives are also facing debt problems,” said Christian Hauswaldt, CEO and founder of Invested, in an interview.
On the other hand, things are not better when it comes to savings; 2 out of 3 millennials and generation Z have less than a month’s expenses to cover an emergency, and although the reason may be insufficient income, the report highlights that it is also due to bad consumption habits.
Even 1 in 2 Generation Z workers cannot cover an unexpected expense greater than 5,000 pesos.
“This lack of savings to cover emergencies can lead to serious financial problems in the event of unforeseen events,” it notes.
