A healthy majority of Americans feel confident about various aspects of their lives, but only slightly more than half feel that way about the current state of their finances, according to research released this week by Northwestern Mutual.
Seventy-nine percent of study participants said they feel strongly or very strongly about their friendships; three-quarters feel that way about their mental and physical health; and 69% said the same about their job stability.
But only 57% said their feel strong or very strong about their finances. Thirty-six percent said financial uncertainty keeps them up at night at least once a month.
"Given the uncertainty we've all experienced these past few years, it makes sense that some people are feeling less confident in their financial situation right now relative to other factors in their lives," Tim Gerend, chief distribution officer at Northwestern Mutual, said in a statement.
"Finances are just one part of people's lives, but they can have a real impact on overall wellness — especially if they are not sure if they are making sound financial decisions."
The findings are the latest data set from Northwestern Mutual's 2023 Planning & Progress Study, which was conducted by The Harris Poll between Feb. 13 and March 2 among 2,740 U.S. adults.
Generational Anxiety
The study found that financial anxiety tends to follow an arc as people move through life. In general, financial uncertainty is elevated for Generation Z, peaks for millennials, begins to recede for Gen Xers and reaches its lowest levels for baby boomers and older people.
For example, of those survey respondents who said financial uncertainty makes them feel depressed at least once a month, 47% were Gen Z, 54% millennials, 39% Gen Xers and 20% boomers. Similarly for those who said they lose sleep at least once a month: 44% of Gen Z, 53% of millennials, 37% of Gen Xers and 19% of boomers.
