Raise your hand if the thought of managing future finances gives you a bit of anxiety. You’re not alone—many of us feel that same worry.
It’s so easy to focus on living in the moment, especially when there are spontaneous adventures to be had. A last-minute trip to Greece with friends? Absolutely! Those front-row tickets to the Eras Tour? Too tempting to pass up.
But here’s the catch: these fun experiences are often fueled by credit cards, and before you know it, your balance is creeping up, and those bills are starting to pile up.
For many, especially Gen Z, this is becoming a concerning trend. A 2023 survey by credit reporting firm Experian revealed that this generation values spending on experiences over saving for things like retirement. And, given the challenges this generation has faced, it’s understandable why.
During the pandemic, Gen Z found themselves in an unprecedented situation—isolated at a time when they should have been experiencing high school milestones or adjusting to college life. Instead, they endured lockdowns and dealt with rising mental health struggles, according to a 2021 Harvard University report.
As a result, many Gen Z individuals have developed a new outlook on life. They’ve shifted priorities from accumulating material goods to cherishing experiences, valuing time spent with loved ones, and rejecting the hustle culture that has dominated previous generations.
However, despite this shift, financial stress is still a major concern for many. According to a 2023 Ernst & Young survey, only 31 percent of Gen Z feels financially secure, and over half of them report being “extremely worried” about their financial future.
Nearly 70 percent of them rate their current financial situation as “fair” or worse, with 32 percent describing it as “poor” or “very poor.”
Because of this financial uncertainty, many Gen Z individuals are postponing major life milestones. A 2024 survey from Bank of America found that half of the respondents aren’t on track to purchase a home, and nearly half haven’t begun saving for retirement. In fact, 46 percent still rely on their parents for financial support.
But financial stress doesn’t have to define this generation’s future. The solution lies in not letting fear control their financial decisions. More and more, Gen Z is realizing the strong connection between mental well-being and financial health.
Improving their financial stability can positively impact their overall wellness, making it easier to sleep at night without the stress of wondering if they’ll make rent or if that last purchase was really worth it.
Sabrina Rosh, a certified financial planner and director of financial planning at Ellevest, explains that getting control over your finances doesn’t need to be as hard as it sounds. The key, she says, is creating a budget.
“Budgeting doesn’t have to be painful,” she points out. “It can actually be empowering. You can budget for things that make you happy, like that special latte or some nice candles. Once you get comfortable with budgeting, it’ll become second nature, and your attitude toward money will shift in a more positive direction.”
Financial wellness isn’t just about managing your money—it’s about how money affects your physical and mental well-being. According to Columbia University Irving Medical Center, financial stability can lead to better emotional and physical health.
Conversely, financial insecurity often worsens mental health conditions like anxiety and depression, and can even cause physical problems like high blood pressure, insomnia, and headaches, as noted by MassMutual.
To start building a solid financial foundation, Rosh recommends following the 50/30/20 rule. Allocate 50 percent of your budget to essentials, 30 percent to things you want, and 20 percent to your future goals.
There are several companies and platforms that have recognized the importance of financial wellness. For example, Ellevest, an investing platform designed with women in mind, helps users plan for a secure financial future, addressing unique challenges such as career breaks and wage gaps.
Similarly, BrightDime provides financial wellness tools for employees to help with budgeting, spending habits, and debt reduction, while Your Money Line offers one-on-one coaching to help improve financial literacy, credit scores, and overall money management.
“When you have clear financial goals, you feel more confident making those small indulgences,” says Rosh. “Whether it’s treating yourself to a spontaneous vacation or buying a pair of shoes you’ve had your eye on, you’ll feel better about it when you know you’re also investing in your future. Living in the moment is important, but setting yourself up for a secure future allows you to truly enjoy the present.”
