The proverbial midlife crisis is typically reserved for those nearing their fifties and sixties, but younger generations are now succumbing to the anxieties and pressures that come with midlife struggles. In a new study by Arta Finance, 38% of Gen Z and 36% of Millennials reported feeling that they are in crisis.
Today’s young adults are living in a radically different economic landscape than their parents and grandparents. The average cost of living has increased by 28.3% just in the past decade while wage inflation has remained stagnant, creating a domino effect of missed milestones. Early adulthood is typically a time for growing wealth and stability while accruing assets, an ideal that was statistically true for Baby Boomers, of which only 15% reported experiencing financial stress during early adulthood. But fewer Millennials are home owners, as compared to Baby Boomers during the same life stage, and the percentage of people aged 18-29 who have moved back in with their families is at an 80-year high.
This inflation-heavy market has created unmet expectations for younger generations who are seeing their dreams deferred. More than a quarter of both Gen Z (25%) and Millennials (27%) said their emotional and mental health had been impacted in a negative way as a result. Like the cliché convertible that was often tied to the midlife crises of Baby Boomers and Gen X, younger generations are turning to impulse buys fueled by social media trends to cope, when what experts say they need is financial planning, more income opportunities and long-term sustainability.
