News
Gen Z and millennials worry about finances and homelessness: survey
How to Save Money in Unexpected Ways
There are hidden discounts and forgotten savings that you can use to save money.
Problem solved, USA TODAY
Almost a third Generation Z It is millennial generation worry that your finance could lead to them becoming homeless, according to research carried out by Nuts and Opinion research.
Between February 14 and 23, 5,000 US consumers aged 18 and over responded to the survey, called the Acorns Money Matters Report. Respondents included Gen Z, millennials, Gen X, boomers and the Silent Generation or people aged 78 and over.
Acorns has been conducting the survey since 2017. This year’s survey found that 29% of Gen Z and 32% of millennials fear their financial situation could lead to experiencing homelessness. Gen Z and millennials were nearly three times more likely than boomers and older respondents to be concerned about this outcome, the survey results showed.
“When you think about money holistically and the emotional side of money… this is what ultimately looks like a lack of hope and trust,” Noah Kerner, CEO of Acorns, told USA TODAY.
The company also found that 33% of millennials and 28% of Gen Z fail to enjoy life because they are obsessed with money.
Acorns, the financial services company Kerner leads, tries to address financial, educational and emotional problems, he said. The brand, he said, is based on the idea of tiny acorns “growing into mighty oak trees.”
“Giving people the feeling that if you make these little changes in your life and stay committed to these little things, you can change your life,” he said.
More finance news: The Fed just dashed hopes for lower mortgage rates. What homebuyers need to know.
Finances are stressing people out. What specifically worries them so much?
When conducting the survey, Acorns found that less than 10% of respondents do not have any financial concerns. Of those who do, the cost of living and inflation stress us more than debt, retirement, interest, mortgages and lack of savings.
Americans of all incomes said that, after the cost of living, the financial stressors that affect them most are inflation and debt.
Of those surveyed, only 35% think they will be more financially secure next year than they are currently. Most people, or 44%, think their financial security will be the same next year.
Acorns also conducted a benchmarking survey among 1,965 Acorns customers surveyed from March 20-26. According to the company, Acorns customers feel more financially secure compared to the larger group of respondents. Acorns reported that 34% of its customers feel more financially secure, while 25% of the larger survey group feel financially secure.
How does war affect financial security?
When surveying consumers, Acorns found that more than half of those surveyed are concerned that war and global conflict could affect their financial security. Of those surveyed, 25% said they were “extremely concerned” about the impact of war and global conflicts on their financial security.
More respondents expressed concern about the growing popularity of artificial intelligence as well as climate change.
According to Acorns, respondents with more education and a higher household income are most concerned about how current events may affect their financial security.
The report found that 47% of people with a high school diploma are concerned about the impact of global war on their financial security, while 51% of people with some college experience or an associate’s degree worry about it, and 57% of people with a bachelor’s degree or bachelor’s degree. higher education fears global war will impact its financial security.
People wish they had learned more about finances as children
Acorns reported that 27% of respondents have never had an emergency fund.
About 23% of American adults surveyed did not receive any financial literacy education as children, while 66% of people who did not receive financial literacy education think their financial security would be better today if they had learned more about finances.
Among respondents, Gen Z and millennials are most likely to wish they had received more financial education as children.
“This finding is especially interesting given that these younger generations also report higher rates of financial literacy education compared to older generations surveyed,” Acorns said in a press release about the survey.
Just a quarter of people surveyed work with human financial advisors, while 7% use a robo advisor, Acorns reported.
The Drive to Reduce Financial Anxiety
Kerner, CEO of Acorns, said anxiety is a big part of financial stress, proven by studies outside of his own.
He referred to behavioral economist Shlomo Benartzi, who found that financial advice reduces anxiety by up to 82% salary increases.
“If I’m getting what I need to feel more comfortable and confident while reducing anxiety, that could have the kind of impact that an 82% pay increase could have in terms of reducing anxiety,” he said. “This type of statistics and information is what drives us to create Acorns the way Acorns exists.”
He said Acorns aims to tackle the problem of financial stress and anxiety by relieving people of their burdens. He said Acorns has “set it and forget it” products that allow people to sign up, deposit money, set their contributions, stress less and enjoy their lives more.
One of the company’s products, the Mighty Oak Debit Cardallows customers to invest spare change from purchases and save and invest part of each paycheck.
“One of the things we’re really proud of with this product is that customers who use it, on average, have saved $750 in emergency savings after a very short period of time, actually a few months,” he said.
Saleen Martin is a reporter on USA TODAY’s NOW team. She’s from Norfolk, Virginia – the 757. Follow her on Twitter at @SaleenMartin or email her at sdmartin@usatoday.com.