It’s now a harsh reality that many young Americans are barely scraping by, struggling to pay their bills. With basic needs like housing becoming unaffordable, countless people live paycheck to paycheck. A new report titled “2024 Money Matters Report,” published by Acorns, an investment and savings app, revealed the dark financial reality the younger generations are going through. The report draws on responses from Americans who were queried about financial security, the impact of finances on their well-being, and other monetary concerns.
The responses revealed that one in four Americans feels the looming threat of homelessness. Millennials and Gen Z individuals were found to be three times more likely to worry about being able to pay the bills compared to Baby Boomers. People were most concerned with the rising costs of living that choked their finances. Coupled with this, they are constantly exposed to depressing news about the country’s poor economy. This has forced individuals to take a more proactive approach to increase their savings and also spend a lot of time and energy to increase their financial literacy.
As per the survey, a shockingly low percentage of only 35% of Americans believed that they would be more financially secure in the next year compared to where they are presently. Alarmingly, 46% of respondents reported no improvement in their financial security over the past year. In fact, the cost of living problem has created such an impact that it pales in comparison to having debt, setting up a retirement fund or savings and even interest rates. The survey also found that those who lived in major cities were more likely to be stressed out about money management.
This makes sense because a Creditnews Research report highlighted how big cities in California and Florida turn out to be the most unaffordable metros for people who are looking to rent. Jeff Olivet, executive director at the U.S. Interagency Council on Homelessness, spoke about how the biggest cause for the housing crisis was “the shortage of affordable homes and the high cost of housing that have left many Americans living paycheck to paycheck.” Noah Kerner, CEO of Acorns, spoke to USA TODAY, “When you think about money holistically and the emotional side of money…that’s what ultimately feels like the lack of hope and confidence.”
