5 Reasons Gen Z Feels the Most Financial Stress of Any Generation
Written by
Emily Fowler
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Financial stress is something that Americans of all generations experience. However, according to a study by Credit One Bank, 59% of Gen Z is stressed or anxious about money — far higher than the 29% of baby boomers who are, for example.
This sense of stress doesn’t just come from poor financial decisions or habits but from a variety of external pressures and shifts in economic norms that have shaped the way Gen Z handles their money. Here are five of the reasons this generation feels financial stress.
Economic Uncertainty
Gen Z’s formative years were marked by the aftermath of the 2008 financial crisis, which likely impacted their parents, followed by ongoing challenges, like rising student loan debt, stagnant wages and a volatile housing market.
According to the Education Data Initiative, Gen Z accounts for 28.2% of all student loan borrowers. And according to the Center for American Progress, 76% of Americans think that housing affordability is becoming more of a problem, which is especially concerning for Gen Zers who are trying to enter the housing market.
These economic conditions could create a sense of financial instability that directly affects how people in general approach money, and this generation likely feels it more keenly.
High Cost of Living
The soaring cost of living is a primary concern for Gen Z. According to a 2024 Deloitte survey, cost of living was the greatest concern among Gen Zers.
While many are still in school or college, older Gen Zers are in the early stages of their careers, dealing with rising rent, high healthcare costs and inflation. For them, achieving financial stability could feel nearly impossible when basic needs like housing and healthcare eat up a large portion of their income.
Rising Debts
According to the Credit One Bank survey, 39% of Gen Z sees debt as a normal part of their financial life, a mindset likely formed by student loans and credit card balances that feel difficult to overcome.
According to the Federal Reserve Bank of New York, total household debt rose to $18.04 trillion in the fourth quarter of 2024, continuing its steady increase. With rising balances across mortgages, auto loans and credit cards, Gen Z faces an uphill battle in managing their financial future.
Societal Expectations and Norms
There’s also an undeniable link between societal pressures and financial stress. Many Gen Zers, heavily influenced by social media, feel a significant burden to meet certain financial milestones — like homeownership, luxury travel and a certain level of disposable income.
A hefty 72% of Gen Z sees societal expectations as a source of financial trauma, feeling that they’re not living up to these standards, per Credit One Bank.
Generational Gaps in Financial Conversations
Unlike previous generations, Gen Z is more open about discussing money, but that doesn’t mean it’s a stress-free topic. While 30% of Gen Z in the survey grew up having frequent conversations about finances with their families, many still learned about money in a reactive environment.
For instance, per Credit One Bank, 35% of Gen Z discuss finances only during times of stress, reflecting how money talk tends to spiral into anxious, last-minute reactions rather than proactive, thoughtful planning.
More From GOBankingRates
