Money is a touchy subject for many young adults, or at least that’s the gist of a new report by the Principal® Foundation.
The financial literacy nonprofit released the survey findings of 3,000 Millennial and Gen Z Americans conducted by YouGov highlighted how younger generations think about their financial futures. Surprisingly, their thoughts are steeped in fear.
“People develop narratives around money and personal finance based on familial experience and those narratives tend to impact their relationship to money and inform their financial decisions throughout their lives,” said Jo Christine Miles, director, Principal Foundation and Community Relations, Principal® in a statement shared with ESSENCE. “This contest is a way to inspire people, through the universal, human art of storytelling, to reimagine their narrative, resolve any struggles and, ultimately feel more comfortable having more robust financial conversations that advance their financial goals.”
The report also found that Zillennials have underlying fears of being judged about their money habits. More than 40% fear being judged for their habits or earning level. Additionally, financial habits witnessed growing up can lead to anxiety and control issues around money later in life.
Other findings suggested that young adults will continue with the same financial habits they witnessed growing up and often underutilize retirement accounts and investment accounts because they think they don’t have enough money for them.
More information about the report can be found here.