Money-related concerns are quite high among young adults, according to a report from Bank of America Merrill Lynch. Specifically, even though a large majority (84 percent) of surveyed Millennials said that they are at least “somewhat” confident in their ability to manage their personal finances, 41 percent reported that they are “chronically stressed” about money. Further, when asked about how they feel about their current financial situation, more Gen Y respondents said that they are “anxious” or “overwhelmed” than those that said they feel “prepared,” “happy,” or “secure.” The most frequently cited sources of stress included insufficient savings, overspending, debt, and being ill-prepared for retirement.
Such anxiety has permeated into other areas of respondents’ lives, including emotional well-being, personal relationships, and physical health. Roughly one in five surveyed Millennials also said that financial stress has had an adverse effect on their job performance. Similarly, a poll conducted by MassMutual found that 37 percent of working adults said that it is at least “somewhat difficult” to manage their personal finances, and almost the same amount (40 percent) reported that they are often distracted by money-related issues. This inability to focus can hurt workplace performance, and younger Americans were found to be a lot more distracted by financial issues than older generations. The researchers also discovered that workers who are less distracted by their personal finances tend to be more satisfied with their employer-provided benefits, likely another reason why businesses should consider implementing a financial wellness program.
Sources: BofAML, MassMutualPost author: Charles Couch