You’re not Imagining Things: The Numbers Behind Young People’s Financial Anxiety

Many of the anxieties that young people such as myself have today revolve around money. For many of us, financial stress can be a persistent background that creates a sense of instability and frustration. Money isn’t everything, sure, but it’s an undeniable necessity for participating in society and enjoying much of what it has to offer. Depending upon the lifestyle we want or are accustomed to, it can also be linked to our sense of security and identity. 

There are real reasons to feel a sense of dread: rising student loan and credit card debt, declining housing affordability, a widening gap in wealth between generations, and a cost of living that has outpaced wage growth. It is important to keep in mind, though, that the financial precarity we face as members of the Millennial and Gen Z generations is better understood not as a result of our individual failures, but as a reflection of a larger economic reality outside of our control.  

Wealth disparity by age group can help clarify the situation. According to US Federal Reserve data, Americans under the age of 40 control less than 7% of the country’s total assets, while those aged 55 and above control over 70%. It may be expected that wealth accumulates with age; yet the scale of this gap is larger than in previous generations. Compared to 1990, the share of wealth held by those under 40 has been nearly halved.

At the same time, essentials such as housing, education, and healthcare have become more expensive. Looking at home purchasing specifically, the home price-to-income ratio (which compares median income to median home price) reached 5:1 in 2024. In 1990, this ratio was closer to 3:1. Even after adjusting for inflation, the average mortgage payment in 2024 was 40% higher than in 1990. Similarly, inflation-adjusted college tuition and fees have doubled since 1990. In terms of healthcare costs, millennials are estimated to spend around three times as much as their parents spent on health insurance at the same age.  

I don’t mean to provide an overly pessimistic outlook, and there are certainly some reasons to believe that things will improve over the next few decades. A 2025 Bank of America report projected that, by around 2035, Gen Zers will be the wealthiest generation, with a total accumulation of $74 trillion. Additionally, the “Great Wealth Transfer” is expected to redistribute an estimated $84 to $124 trillion from Baby Boomers and the Silent Generation to Gen X, Millennials, and Gen Z. 

There’s some hope on the horizon, but this doesn’t lessen the lived experience of stress we’re going through day to day. While we often can’t fix our economic situations in a direct way, there are ways to decrease the generalized anxiety that it conjures. According to a 2025 American Psychological Association report, social support is one of the strongest predictors of wellbeing. What that connection looks like will be different for everyone—for some this might be joining a book club, and for someone else it might be going out on a limb and asking a friend for help. These acts often do require a level of vulnerability that is uncomfortable, but that emotional space formed by trust is where meaningful connection becomes possible.

The financial anxiety that younger generations experience is not a character flaw or a sign of weakness. Instead, it reflects a genuinely harder set of circumstances. If you’ve felt behind or stressed, or like you’re falling short of some standard that should be within reach by now, you’re not alone. While things may feel difficult now, every generation has had to face its own set of challenges, and I for one certainly believe that ours is up to the task. 

To hear more on this subject, tune in to episode two of the Facing the Moment Podcast: Fostering Wellbeing for Youth. Toufic Hakim, PhD, speaks with Fadi Petro about the struggles young people face today and the ways we can better support ourselves and each other.