Stressing over money is neither new nor confined to a particular age group, but it seems to have a particular hold on younger people, according to a new survey from digital banking platform Laurel Road.
By Vance Cariaga
See: 30 Things Every 30-Something Should Know About Their MoneyFind: Millennials Share Their Biggest Money Regrets for Gen Z To Learn From
More than six in 10 (62%) Gen Z and millennial Americans are “constantly stressed” about money, according to the survey, and 70% feel like they’ve fallen way behind others their age in terms of financial stability. The survey of 2,000 Gen Zers and millennials was conducted by OnePoll on Laurel Road’s behalf and released on Wednesday.
Financial stress is triggered by just about anything to do with money. Nearly two-thirds (65%) of respondents get anxious when checking their bank accounts, and three-quarters are anxious about pending charges they might have rung up over the weekend. Seven in 10 also stress over checking their credit card statements.
Gen Zers and millennials have plenty of experience with financial anxiety, having either grown up or reached adulthood during the Great Recession of 2007 to 2009. That anxiety has been cranked up another notch by the COVID-19 pandemic, which rocked the global economy.
See: Gen Z Begins To Emerge From Pandemic Wiser About Money — Here’s What They’re LearningFind: The Top Stocks Millennials and Gen Z Are Invested In
“Financial stress and anxiety are incredibly common feelings among Gen Z and millennials, many of whom are facing new challenges in light of the pandemic, and we’re seeing firsthand that this group is interested in taking the steps needed to alleviate stressors and strengthen their finances and mental health,” Alyssa Schaefer, Laurel Road’s general manager and chief experience officer, said in a press release.
The survey found that these are the top five financial stressors for Americans under 40:
- Paying monthly bills: 28%
- Trying not to overspend: 27%
- Saving for a home: 27%
- Making a monthly budget and sticking to it: 26%
- Putting money into a savings account: 26%
See: Millennials and Gen Z Want To Retire by 60 — One Expert Points Out Major Obstacles to Their PlansFind: Many Gen Zers and Millennials Still Rely on Parents’ Financial Support
To deal with these and other stressors, many young people have put a priority on “mental wealth,” Schaefer said. This typically involves increasing savings accounts, creating a financial plan and building financial wellness. More than four in 10 respondents (44%) said they plan to focus on saving more money each month, while 36% said they plan to set aside their pandemic savings for the future.
Nearly half (48%) of respondents said they hope to gain a better understanding of investment options as a way to help get their finances under control. Other steps they plan to take include creating roadmaps to reduce debt (41%) and developing a student loan repayment plan (34%).
See: 3 Ways To Prepare for When Student Loan Forbearance EndsFind: What To Do If You Can’t Afford Your Student Loan Payments
“As the student loan forbearance period ending fast approaches, it’s important that Gen Z and millennials know what options are available to them to retain and build their future savings,” Schaefer said. “There are many options available to chip away at debt by making small monthly payments or refinancing student loans to secure a lower interest rate.”
- Create a budget you can stick to
- Don’t add more debt if you are already paying down debt
- Get a side hustle
- Open a savings account and contribute to it regularly
- Build an emergency fund of at least three months’ worth of expenses
- Contribute a full match to your 401(k) account
Money will always be a consideration, but getting your finances under control can keep it from being a source of stress.
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