Gen Z is facing a financial stress epidemic, with 60% reporting feeling anxious about their finances compared to 51% of millennials at the same age. Rising costs of living, job uncertainty, and increasing housing expenses contribute to widespread concerns about long-term financial security and homeownership. This financial anxiety is deeply tied to mental health, with many feeling overwhelmed by the pressures of managing finances in uncertain economic times.
However, Gen Z is not retreating in the face of these challenges. Instead, they are reframing their approach to financial health by focusing on financial wellness strategies that can reduce stress and improve overall mental well-being. An increasing number of young adults are integrating financial management into their overall wellness routines.
Nearly 58% report that actively managing their finances improves their quality of life, reinforcing the idea that financial health is intrinsically tied to mental and physical health. Yet, many still lack a clear strategy for navigating financial setbacks, with 32% struggling to plan for unexpected expenses and 49% living paycheck to paycheck.
Gen Z prioritizes financial wellness
To address these challenges, Gen Z is embracing small, sustainable financial habits that support their broader life goals and contribute to mental clarity and peace of mind. They are also turning to side hustles as a means of financial security, with 41% attributing improved financial well-being to additional income streams and 31% viewing growing their side hustle as a top financial priority. The stigma surrounding money discussions is beginning to fade as Gen Z recognizes the importance of transparent conversations about finances, leading to better decision-making and improved mental health.
Surveys show that 65% of young adults want to have more open discussions about money, and 55% believe that their financial health directly impacts their mental and physical health. To start a financial wellness routine, experts recommend weekly financial check-ins, mindfully tracking spending, focusing on personal priorities, and practicing financial mindfulness. By aligning finances with personal values and recognizing emotional spending patterns, individuals can reduce stress and enhance emotional wellness.
This evolving perspective on finances signals a cultural shift, with Gen Z emphasizing financial habits that prioritize stability, flexibility, and personal fulfillment—key components of mental health. As financial literacy becomes more accessible, Gen Z will continue shaping a future where financial well-being is not just about accumulating wealth but about creating a lifestyle that aligns with their values and promotes mental and emotional wellness.
Photo by; Vitalii Pavlyshynets on Unsplash