Is Gen Z the financial anxiety generation?

Gen Z is widely recognized as the “financial anxiety generation,” with data showing that they report higher levels of financial stress and worry than previous generations. Multiple studies and recent surveys highlight money as a top source of anxiety for Gen Z, with factors like economic instability, high living costs, and debt driving these concerns.​

Financial Anxiety Statistics

• More than half of Gen Z say they are very or extremely worried about not having enough money, with 59% to 70% reporting financial stress or anxiety—higher than millennials, Gen X, or baby boomers.​

• Only 31% of Gen Z feel financially secure, and nearly 70% rate their current financial situation as only “fair” or “poor”.​

• Financial worries are so prevalent that 70% of Gen Z have trouble sleeping due to money concerns, and many engage in avoidance behaviors like “bed rotting” as a coping mechanism.​

Key Causes of Gen Z’s Financial Stress

• Economic Instability: Gen Z grew up during the aftermath of the 2008 financial crisis and faces uncertainties from student debt, unstable job markets, and housing affordability issues.​

• High Living Expenses: The increasing cost of living—especially rent, healthcare, and tuition—makes it difficult for Gen Z to feel financially stable, with many living paycheck to paycheck and nearly half relying on family for essentials.​

• Debt and Lack of Savings: Student loans and credit card debt are major burdens, and Gen Z is more likely than any other generation to regret not having enough emergency savings.​

• Societal and Social Media Pressure: Around 72% say societal expectations contribute to their financial distress, feeling pressure to meet financial milestones set by culture and social media.​

Generational Comparison

Gen Z’s financial anxiety is both widespread and distinctive, making them stand out as the most financially anxious generation in the U.S..​