Money doesn’t buy happiness and no one knows that better than millennials and Generation Z, apparently.
According to a recent RBC study, Canadian earnings have grown rapidly, however, they aren’t catching up fast enough to take care of debt payments.
And it gets worse, because data shows the burden is set to grow. In fact, the average Canadians renewing their mortgages could eventually witness their monthly payments skyrocket by early 2024.
Thanks to interest rate hikes, Canadians could face a 25 per cent increase in monthly payments.
And it looks like millennials are more indebted than ever.
“The millennial generation has in many ways been defined by its staggeringly high household debt,” the report read.
And with millennials and Gen Zers having fewer assets to offset debts, things can get more complicated.
READ MORE: More than 60% of Canadian Gen Zers plan to quit their jobs by the end of the year: survey
Maybe some Canadians can take a page out of a boomers’ book since their “consumption levels” are the lowest on average, according to the report.
“This group is spending over a third less on discretionary goods and services than younger Canadians in their thirties,” the report details.
“And given younger cohorts’ heavy reliance on a stable employment income (which accounts for 85% of their total income) to service high debt levels, layoffs could significantly derail discretionary spending.”
