Let’s be honest: money has become a major mental health stressor for Gen Z’ers. From student loans to capitalistic pressures, your mental wellness suffers. According to an EY study from September 2023, only 31 percent of Gen Z’ers feel financially secure, with 52 percent saying they are very or extremely worried about not having enough money. The study also found that 39 percent of Gen Z’ers are stressed about making the wrong choices with their money.
Client success partner Imani Smith knows all too well this feeling of fiscal scarcity and uneasiness. After graduating from Jackson State University, the now 28-year-old moved away from home and began managing her finances for the first time. Smith quickly became overwhelmed and lived in a very unhealthy state of mind. “There were times where I was sitting in my apartment after I [had] been able to pay all my bills, where I had nothing left,” she tells GU. “[After] being in that state [of] constant despair and uneasiness around my finances, I just looked up one day, and I was like, ‘I cannot continue this.’”
For many, the first hurdle in navigating their finances is addressing the root cause of their issue with money. Aja Evans, a licensed mental health counselor focusing on financial therapy, asserts that financial trauma is “nuanced and individual” for everyone. She defines it as “any stressful, impactful, negative event that left you feeling extremely stressed out and potentially scared that resulted from money.” Younger generations experience high levels of financial trauma, with an Experian study finding 73 percent of Gen Zers and 77 percent of Millennials experience negative thoughts, flashbacks or anxiety about money.
Evans noted that financial trauma can impact anyone’s mental health, and it’s often connected to a childhood experience. The study found that 51 percent of the younger generations’ families rarely or never spoke about finances, leading to 43 percent feeling like they never learned about financial planning and 42 percent stating they never learned how to use credit or build their credit scores. According to Evans, unhealed financial trauma eventually appears in a person’s behaviors and patterns regarding money. Financial avoidance, where a person refrains from looking at their finances, is one common behavior pattern.
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Evans believes social media and more open conversations are helping younger generations reach a breakthrough. With her younger clients, especially those in Gen Z, she sees more awareness about their finances and a push to try to do better. However, addressing financial trauma is not easy for anyone. The journey to financial holistic wellness was a long, rough road for Smith. “Sometimes, when you are in a place where you are being hit at every turn, the last thing that you want to hear is something positive about a negative situation,” Smith says. “But, I will tell you, as soon as I decided to change my mindset and change the words that came out of my mouth when it came to money, mentally, for me, it got better.”
This mental clarity gave Smith the energy to move into a better financial position. For her, involving God into her finances and learning from YouTube videos and books were the driving forces behind the change in her life. Other things that helped her were automating her bills and opening a second checking account dedicated to her needs. Echoing Smith’s journey, Evans often tells her clients that holistic financial wellness comes with education and an understanding of one’s relationship with money. She also reminds people that there’s no time limit for financial betterment.
“Many people get so upset with themselves about not knowing [information] earlier,” Evans tells GU. “Now is always better than never. It doesn’t matter if you’re paying off debt. It doesn’t matter if you’re trying to save money. It doesn’t matter if you’re saving for retirement. Today is a great day to start always.”
Above all, both Evans and Smith urge people to give their mental health grace on their journeys. Evans asserts that being mean to yourself doesn’t motivate you; instead, it makes you feel bad. In agreement, Smith reminds her followers not to compare themselves to others and to treat themselves with kindness. “We are young figuring out our finances, and this is not the economy that many people have navigated their 20s, 30s, 40s and 50s in,” Smith says. “Now that I’m clear on where I want to be, I have to keep that goal in mind at the baseline and allow myself grace along the way.”
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About the Author: Kayla Grant is a multimedia journalist with bylines in Shondaland, Black Love, theGrio, Business Insider and more. She writes about culture, books and entertainment news. When she’s not writing, Kayla’s traveling, reading, binging TV shows, or all of the above. Follow her on Twitter: @TheKaylaGrant.