Nearly a quarter of Gen Z and Millennials are concerned that their financial situation could lead to homelessness, according to a survey conducted by Acorns and Opinium Research.
Between Feb. 14 and Feb. 23, 5,000 U.S. consumers ages 18 and older completed a survey called the “Acorns Money Matters Report.” Respondents included Gen Z, Millennials, Gen X, Boomers, the Silent Generation or people age 78 and older.
Acorns has been conducting this survey since 2017. This year's survey found that 29% of Gen Z and 32% of Millennials are concerned about the possibility of homelessness due to their financial situation. Survey results showed that Gen Z and Millennials are nearly three times more likely to worry about this outcome than Boomer and older respondents.
“When you think about money holistically and the emotional side of money, it ultimately feels like a lack of hope and confidence,” Acorns CEO Noah Kerner told USA TODAY. .
The company also found that 33% of Millennials and 28% of Gen Z are unable to enjoy life because of their obsession with money.
Kerner's financial services company, Acorns, is trying to confront the problem financially, educationally and emotionally, he said. He said the brand is based on the idea that a small acorn “grows into a big oak tree.”
“It’s about giving people a sense that if they make small changes in their lives and keep trying in small ways, they can change their lives,” he said.
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Finances are stressing people out. What exactly are they so worried about?
While conducting a survey, Acorns found that less than 10% of respondents had no financial concerns. For some, the cost of living and inflation are more stressful than debt, retirement, interest, mortgages, and lack of savings.
Americans of all incomes say inflation and debt are the most impactful financial stressors after the cost of living.
Only 35% of those surveyed believe they will be more financially stable next year than they are now. Most people (44%) believe their financial security will remain the same next year.
Acorns also conducted a comparative study among 1,965 Acorns customers surveyed from March 20th to March 26th. According to the company, Acorns customers feel more financially secure compared to a larger group of respondents. Acorns reported that 34% of customers feel more financially secure and 25% of those surveyed in a large survey said they felt more financially secure.
How does war affect economic security?
Acorns surveyed consumers and found that more than half of respondents are concerned that global wars and conflicts could affect their financial security. Twenty-five percent of respondents said they were “very concerned” about global wars and conflicts affecting their economic security.
More respondents also expressed concern about the growing popularity of artificial intelligence and climate change.
According to Acorns, respondents with higher education and higher household incomes are more concerned about how current events affect their financial security.
According to the report, 47% of high school graduates are concerned that a world war will affect their financial security, compared to 51% of those with college experience or an associate's degree, and 51% of those with a bachelor's degree. 57% of bachelor's degrees and bachelor's degrees are worried about it. The global war of words in higher education will affect their economic security.
I wish people had learned more about finance when they were kids.
Acorns reports that 27% of those surveyed have never had an emergency fund.
Approximately 23% of American adults surveyed did not receive financial literacy education in childhood, and 66% of those who did not receive financial literacy education said they would be better off today if they had been taught more about finances. I think our economic security has improved.
Among those surveyed, Gen Z and Millennials are more likely to wish they had received more financial literacy education as children.
“The findings of this study are significant given that these younger generations report higher rates of financial literacy education compared to older generations surveyed,” Acorns said in a news release about the study. is particularly interesting.”
Acorns reports that just a quarter of people surveyed work with a human financial advisor, and 7% use a robo-advisor.
Initiatives to reduce economic anxiety
Kerner, CEO of Acorns, said other studies have shown that anxiety is a big part of financial stress.
He cited behavioral economist Shlomo Benartzi, who found that financial advice reduced anxiety by 82%.
“If you can reduce anxiety and get what you need to feel more comfortable and confident, that could be as effective as an 82% raise in terms of anxiety reduction,” he said. Ta. “This kind of statistics and information is what drives him to create Acorn as much as Acorn exists.”
He said Acorns aims to tackle the issue of financial stress and anxiety by easing people's burden. He said Acorns offers a “set it and forget it” product that allows people to sign up, make deposits, set up donations, reduce stress and enjoy life more. .
One of the company's products, the Mighty Oak debit card, allows customers to invest their spare change from shopping and save and invest a portion of each paycheck.
“One of the things we're really proud of with this product is that our customers who use this product have, on average, $750 in emergency savings in a very short period of time, in fact, after a few months. savings,” he said.
Saleen Martin is a reporter for USA TODAY's NOW team. She is from Norfolk, Virginia and is 757. Follow her on Twitter.@SaleenMartin or email hersdmartin@usatoday.com.