Do you also belong to the Millennial or Gen Z generation? Are you constantly stressed about your financial well-being and have constant economic anxiety? Don’t worry you are not alone!
Experts believe that rising inflation is a major cause of increasing economic anxiety all over the world. And the major section of the society that is suffering from the consequences of economic anxiety is today’s youth. The young generation whom we generally call Millennials and Gen Zs are reported to be under the constant pressure of financial stress. But what is economic anxiety? And why is it bothering the youth so much?
What Is Economic Anxiety?
The term “Economic Anxiety” is made up of two-term, economic and anxiety. These two terms explain themselves to a great extent. Economic anxiety is stress or anxiety caused by financial reasons.
The major financial concern for the young generation is the rapid increase in the cost of living. The youth of today is worried about wealth inequality because of the rising level of inflation and constant market fluctuations. The other direct and indirect reasons that might add to their economic anxiety are job burnout, unemployment, societal impact and workplace mental health.
Reasons Why Millennials are Economically Anxious
The reason for economic anxiety is the same all over the world. It is just that some countries are performing a little better than others. Millennials across the world are struggling with financial anxiety. Here are some of the common reasons that cause economic anxiety in the youth:
- High Cost of Living
Millennials believe that the cost of living is so high that their income equals their expenses. And there is hardly any money left for savings. According to the survey by Deloitte, 47% of millennials and 46% of Gen Zs live paycheck to paycheck. It means that all the money they earn in a month is spent to meet their daily expenses.
To cope with the bills, people are now opting for extra sources of income along with their full-time jobs. The young workers are either looking for a freelancing project or a part-time job to generate extra income.
- Never Ending Work Stress
Work is something that affects youth the most. Apart from the financial aspects, people are changing their job for better work-life balance, learning opportunities, and inclusive workplace culture. The anxiety about job security and creating a future in which you retire comfortably, bothers youth a lot. According to financial experts, most Millennials will not be able to retire until 75.
Reportedly, millennials would like to change their jobs every two years for better work opportunities that make them financially stronger. Around 40% of Millennials change their jobs within two years in search of a more stable job. On the contrary, Gen Zs look for a company with whom they can build a long-term relationship.
- Worldwide Crisis
The one after another crisis is something that majorly affects the financial situation worldwide. The pandemic, geopolitical situations, and war between Russia-Ukraine create great turmoil in the financial markets.
The uncertainty of the markets impacts people financially because due to pandemics and war, the prices of almost everything shoot up. This rapid change in the political, financial and health situations put negative effects on the mental health of the Millennials.
- The Social Media
Without any second thoughts, we all can agree upon one thing and that is the negative effects of social media on youth. The glamour and glitter of social media attract the Millennials and Gen Zs to live a luxurious lifestyle. They want to live the life they see every day on social media.
The fear of missing out (FOMO) on a luxurious life is making people more apprehensive. Wanting that lavish lifestyle and then not being able to get it makes Millennials more anxious.
Bridge the Gap To Build Financially Fit Generation
The thing is everyone at one point or another faces financial trouble. But keeping in check your expenses and debts, you can ease up your economical anxiety in an effective manner. Here are some ways you can opt to stay financially fit:
- Keep Your Debt In Control
Debts are the most crucial things to keep under control. Because it is one of the major reasons that cause economic anxiety. If you have debt, you are under constant pressure to pay it off. And also it costs you way more than its actual price because of the high-interest rates.
Keeping your debt under control gives you a good credit score which means that when you will be in serious need of money, you’ll get one easily. If you took a loan with a higher interest rate in an emergency, refinance it with the lower interest rate loan.
- Create An Actual Budget
Create a monthly budget that helps you to control your overspending habits. The data shows that only 38% of Millennials create an actual budget for themselves. Create a buffer budget for special occasions such as birthdays, anniversaries and festivals.
Also, pen down your usual expenses like groceries, mortgages, credit cards and other bills. After taking out all the expenses make sure to save little for the future also.
- Find The Other Source Of Wealth
If you feel that your regular full-time job is unable to meet your expenses then look out for an extra source of income. Because earning only that much money that meets only your daily expenses is not sufficient. You have to be prepared for unplanned events also.
You can earn extra apart from your fixed income from either a part-time job or getting a freelancing project. If you don’t have time for engaging in a freelancing or part-time job, look for safer investment options.
Financial stress and anxiety go hand-in-hand for any person. Since most of the Millennials and Gen Zs are now in the age of building their career, they are getting affected greatly by this economical anxiety. Financial stress and anxiety are common among the Millennials and Gen Zs but if you think calmly there is always a way out.