Why Gen Z Shouldn’t Ignore Financial Anxiety

Gen Z has every reason to be anxious about their financial security. Less than a third of Gen Z feels financially secure, and more than half are extremely worried about not having enough money, according to a recent study. As a personal finance writer, I’d love to tell millennials and older Gen Zers that changing their mindset and taking control of their financial lives would release them from worry. But let’s face it, it’s not that simple. Achieving financial comfort is often difficult for young consumers who haven’t had a chance to build up savings or establish professional networks. Even diligent financial behaviors don’t always protect against unexpected events like the pandemic or inflation. And let’s not forget about the social and economic structures that have historically disadvantaged certain individuals. In a country with limited safety nets, individuals are responsible for shoring up their finances to weather the storms. It’s frustrating that necessities like healthcare are tied to employment, leaving unemployed workers to struggle with obtaining healthcare. The reality is that Gen Z may face similar challenges to millennials, with unforeseen events eroding their progress. However, there is hope. Gen Z has shown a healthy skepticism towards college degrees and student loan burdens. They are also setting boundaries around their time and pushing back against technology that demands endless workdays. Their comfort with rapid technological change can be a strength in overcoming economic obstacles and progressing in their careers. So, while there are valid reasons for Gen Z to be anxious about their financial security, they also have the potential to learn from previous generations and find innovative solutions to navigate the challenges ahead.