Gen Z and Millennials Lead in Proactively Tackling Financial Concerns

A recent survey from Empower reveales that US citizens spend nearly four hours each day contemplating finances, equating to almost half of the average workday. The focus on money, particularly prevalent among Gen Z and Millennials, stems from pressing concerns such as meeting daily expenses and the rising inflation rates. However, despite the high levels of stress, Americans are demonstrating proactive strategies to counteract these financial worries. "In spite of the constant financial concerns, there is positive news: there's a definite shift from mere fretting to proactive planning," noted Rebecca Rickert, Empower's head of consumer insights, during the survey report. The approximately 2,200 survey respondents admitted to spending substantial amounts of daily time contemplating finances and seeking out tools and advice to make financial progress. This proactive behaviour toward their finances was more distinctive amongst younger demographics, such as Gen Z and Millennials who reportedly spend 4.8 and 4.7 hours respectively on financial planning. This compares to 3.7 hours for Gen X and as little as 2.4 hours per day for Baby Boomers. More than half of the respondents revealed that they're thinking about money more now than they did a year ago, a primary concern being retirement planning. It is noted that one third of the respondents confirmed having disturbed sleep due to financial stress, with many indicating that a higher income or lower cost of living would alleviate some of their financial concerns. However, the constant pondering about money isn't merely a form of stress but a response to genuine real-life concerns. Paying bills and dealing with rising costs are the two predominant financial concerns among Americans. Despite the concerns, Americans are exhibiting resilience and a proactive approach toward better financial management. A significant portion (41%) believed that trusted financial information assists them in making smart financial decisions, with approximately 20% consuming financial news regularly to keep up to date. A significant number (33%) stated that discussions with financial consultants are helping them to set clear financial objectives, with almost half confident of achieving these goals. It was observed that a third of respondents are constantly seeking ways of increasing their wealth, particularly among Millennials, 40% of whom reported actively focusing on improving their finances. Around 20% indicated significant improvements in their credit ratings, with another 20% having repaid at least one significant debt. A significant number of respondents also identified strategies favoring a frugal lifestyle, such as reducing dining out (53%) or canceling non-essential subscriptions (33%). This proactive initiative shown by Americans, especially younger generations like Gen Z and Millennials, highlights their tendency to transform financial anxiety into positive action, despite the significant financial pressures prevalent in the current economy.