Navigating the world of personal finance is daunting for anyone, but it’s a particularly pressing concern for members of Generation Z as they begin their careers and become financially independent. Adult Gen Zers, ages 18 to 27, are grappling with new financial challenges at a time of expensive college costs, a competitive job market and sticky inflation, which reached a 40-year-high in 2022 and remains elevated on items such as food and shelter.The effects of these financial concerns seep into Gen Z’s well-being, too. According to Bankrate’s money and mental health survey, nearly half of Gen Z respondents say that money negatively affects their mental health, at least occasionally.Here’s a breakdown of how members of Gen Z approach money, what factors influence their approach and what advice others have for those of this generation.Key financial insights on Gen ZAmong Gen Z members, 47% say that money has a negative impact on their mental health. (Bankrate money and mental health survey)A significant 40% say they’re either slightly behind or significantly behind on their retirement savings. (Bankrate retirement savings survey)Across generations, Gen Z workers are the most likely (28%) to say they don’t know how much they’ll need for retirement. (Bankrate retirement savings survey)Nearly two-thirds (64%) of Gen Zers recently said they were likely to search for a new job in the next 12 months. (Bankrate job seeker survey)Sources of financial stress for Gen ZAs Gen Z enters adulthood and works toward becoming financially independent, they often take on big money-related challenges and responsibilities, such as the following:Paying for collegeEstablishing a careerEstablishing a budget from scratchStarting an emergency fundFor Gen Z, tackling these challenges can cause stress related to personal finance.The top financial stressor for Gen Zers who said money concerns impact their mental health was paying for everyday expenses, which was cited by 52% of respondents in Bankrate’s money and mental health survey. Other commonly cited stressors included inflation and not having a stable income/job, both of which were cited by 50% of respondents, respectively. (Respondents could select more than one answer.)The economic environment plays a part in affecting Gen Z’s mental health, too. They not only have to worry about high prices as they’re beginning their adult lives, but they also have the increasing cost of higher education weighing them down, with legal battles continuing over the Education Department and the Biden administration’s plan to forgive student loans under the Higher Education Act. More than 13 million Gen Zers have a student loan debt balance, according to the Education Data Initiative, which represents nearly 44% of the Gen Z population aged 18 and older.Finally, emergency savings is a topic of concern for Gen Z, much like it is for many U.S. adults. In fact, regrets about not saving enough for emergency expenses are m
Mar. Gen 7th, 2025
