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The top five financial stressors for Generation Z

Published by: LifeWorks,

Millennials struggle with financial uncertainty

Generation Z employees just entering the workforce are stressed about making ends meet. Along with high costs of living and student loan debt, many Millennials also have little experience of money management and taxes, and more still see credit cards as a temporary solution.

Financial stress can cause distracted thinking at work, making young employees less efficient, and in more severe cases driving up absence and sick leave.

As a result, Generation Z workers believe their employers should invest in initiatives geared toward teaching them more about general financial literacy, managing debt, saving for retirement and budgeting. This was a key discovery in the LifeWorks report, “The Financial Wellness of Gen Z – The Good, the Bad, and the Ugly.”

The top five financial stressors are:

  • Cost of living, 58 percent
  • Student loan debt, 41 percent
  • Taxes, 34 percent
  • Poor spending habits, 33 percent
  • Credit card debt, 29 percent

The report found that Generation Z employees sometimes have no choice but to get into more debt. When they face unexpected expenses, 31 percent resort to using credit cards, implying they don’t have enough to cover the cost of emergencies.

They’re also struggling to save, with 19 percent of Generation Z employees not putting anything into savings each month and almost one quarter putting away less than $50.

But it’s not all bad. In the LifeWorks survey of 751 Gen Z employees in the US, Canada, and the UK, a total of 77 percent said they have a clear set of financial goals and know how to achieve them. However nearly the same percentage say they’re moderately to very stressed about finances.

While Generation Z brings ambitious goals and a healthy approach to money management, there are quite a few obstacles standing in their way and these financial issues hurt their overall well-being.

Read the article in full on BenefitsPRO

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