Approximately 60 percent of those in the millennial generation are dealing with some level of financial anxiety, according to a report from PricewaterhouseCoopers. Just 53 percent of those in Generation X and 36 percent of baby boomers are in the same position.
“While last year our results showed that Gen X carried the heaviest financial burden as they were pulled between obligations to their parents, children and their own retirement, their financial health, along with that of Baby Boomers, appears to be recovering faster than Gen Y employees,” said Kent Allison, partner and national practice leader of the employee financial education practice at PwC. “Baby Boomers and Gen X have savings stored away and many still have some equity in their homes, so they’ve benefited from the stock market rally and an increase in home values in most markets in the US.”
Financial issues can even affect an individuals’ productivity. The report explained that nearly one-quarter of Americans felt that their own financial problems distracted them from their work. Nearly 40 percent of that group noted that they will ponder their financial matters for three hours or more each week while in the office. When looking at millennials, 35 percent of that group noted that this was a problem for them. One year ago, this level was just 19 percent.
Young people act more responsibly with finances
A number of young people may be trying to improve their situation in order to cut down on the anxiety of financial management. According to a report from TD Bank, nearly half of millennials act conservatively when making financial decisions.
“The results of our study prove that financial education is not only a key component of financial success, but also that millennials want more support with their personal finances,” said Nandita Bakhshi, executive vice president of retail distribution and product at TD Bank. “Millennials need to feel empowered to reach out to their bank and have their questions answered so they become more confident about their financial futures.”
Many young people want to learn more about finances. The report added that 32 percent want to gain more knowledge on savings, while approximately three in 10 noted that they want to know more about how to make a budget.