4 Reasons Why Gen Z Is More Financially Stressed Than Boomers
Written by
Chris Adam
Edited by
Nicholas Morine
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Younger adults may be feeling more financially stressed than older adults — and it appears to be impacting their mental health.
That’s according to a GOBankingRates July survey of nearly 1,000 Americans aged 18 and over across the country. Nearly 28% of respondents aged 18 to 24 said they stress everyday about their finances. That figure can be compared to just 18% of those 55 to 64 and 14% of those aged 65 and over.
Also per the survey, nearly 21% of respondents aged 25 to 34 said their financial stress affects their mental health. That number can be compared to 17% of those 55 to 64 and 4% of those aged 65 and over.
So why are younger adults more financially stressed than older adults? Here’s a look at four potential reasons.
Uncertainty About the World
According to a Forbes article titled “Gen Z: Hugely Stressed But Believing In A Better Future,” one reason is evident:
“It’s the Gen Z conundrum, born of a healthy belief in their own abilities tempered by living in a fast-changing and uncertain world.”
Unlike earlier generations, Gen Z employees are entering the workforce with the expectation that they’ll have many employers throughout their careers. While that expectation can be freeing, it also presents uncertainty and stress.
Online Pressures
According to Pacific Oaks College, since Gen Z was the first to be raised completely in a digital era, they face unique challenges that impact their mental health. While they had lots of access to online resources and social connections, it also came with a constant barrage of information and social pressure.
“To make matters worse, young adults grapple with uncertainty about their future, financial insecurities, and feelings of isolation and loneliness due to changes in dating and relationship patterns,” the college noted.
Research also suggests younger adults may feel more comfortable talking about their mental health — and labeling their mental health challenges — than older generations.
Isolation
As Pacific Oaks College touched on, younger adults may be feeling more isolated than members of older generations. That’s in part because they’ve been able to do so many things online and through social media, but isolation may also be felt due to changes stemming from the pandemic.
As younger adults deal with uncertainty about their futures and financial insecurities, being isolated or alone only compounds the feelings of stress.
Higher Prices
While many Americans are dealing with higher prices and the effects of inflation today, members of Gen Z seem to have been struggling with such issues for quite some time. But financial stress also comes from other sources.
According to The Washington Post, “Generation Z has been disproportionately pummeled by rising prices, higher housing costs, larger student loan balances and more overall debt than the millennials before them.”
In fact, according to The Washington Post’s analysis of Bureau of Labor Statistics data, “While both generations came of age in the midst of an economic upheaval, Gen Z is spending more on necessities than millennials did at the same age.”
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