Worried About Money? 8 Expert-Approved Ways to Reduce Financial Anxiety

Struggling to pay your rent and other important bills each month is no doubt anxiety-inducing—and, unfortunately, all too common. A 2024 survey from Deloitte, a financial consulting company, found that roughly 60 percent of Gen Z and millennials from all over the world are living paycheck to paycheck. Additionally, 30 percent of those surveyed don’t feel financially secure. 

What’s more, a 2022 study in the Journal of Family and Economic Issues found an association between financial worries and psychological distress among adults in the U.S.¹ These findings are in line with a 2025 financial wellness report from Intuit that found 61 percent of Gen Z and millennials are stressed out about their finances. 

To find out why financial anxiety is on the rise among younger generations—and how to get a handle on it—we chatted with a financial expert and licensed therapist. Here's what they had to say.

Why financial anxiety is rising in Gen Z and millennials

The financial landscape for young adults is more challenging than ever, says Marissa Cazem Potts, a financial advocate at Intuit, a financial software company. “Simply put, rising costs, job instability, and the seemingly impossible dream of homeownership is keeping younger generations in doubt,” Cazem Potts says. 

Amanda E. White, LPC, a licensed professional counselor and founder of Therapy for Women Center, has noticed a significant rise in financial anxiety among her millennial and Gen Z clients. “I think there's a perfect storm of factors creating this trend,” she says. “First, these generations face so many societal challenges: skyrocketing housing costs, stagnant wages, mounting student debt, and increasingly unstable job markets. They've also experienced multiple economic crises during their formative years.” 

Both of our experts agree that social media plays a role in having financial anxiety, too. “Social media has fueled a culture of comparison, where curated glimpses of success and the endless churn of must-have purchases and perfectly decorated dwellings can make financial stability feel like a moving target,” Cazem Potts says. Not to mention, social media “intensifies this anxiety through discussions about how unworkable the situation is for so many,” White adds. 

8 tips to reduce financial anxiety in your everyday life

Financial anxiety can absolutely take a huge toll on your mental health, according to White. “It's difficult to worry about fulfillment and thriving if you feel as though you can't pay your bills—and no amount of therapy can fix that,” White says. “Money worries can create chronic stress that manifests physically through sleep disturbances, tension headaches, digestive issues, and compromised immune function. Psychologically, it's linked to increased rates of depression, anxiety disorders, and feelings of helplessness.”

With that in mind, it’s important to find ways to mitigate financial stress in your daily life. And, according to Cazem Potts, younger generations are doing just that. “From utilizing money and credit management apps like Intuit Credit Karma to taking up side hustles, they’re redefining financial success on their own terms,” she says. “In fact, 58 percent of Gen Z and millennials integrate money management into their self-care routines and prioritize financial independence, flexibility, and peace of mind over traditional status symbols.”

If you’re worried about money and want to sleep easier at night, here are our experts’ top tips to reduce financial anxiety in your everyday life. 

1. Set a money plan that works for you

“Instead of viewing a budget as restrictive, think of it as a money management plan that aligns with your priorities,” Cazem Potts says. She recommends following the 50/30/20 rule—allocating 50 percent of your income to essentials, 30 percent to personal wants, and 20 percent to savings or debt. Tracking expenses through financial management tools and apps can also help build awareness and control, she says. 

White suggests setting up a regular "money check-in" with yourself—a specific time each week or each month dedicated to reviewing your finances. “This creates a time to ensure you don’t sink into avoidance about your finances but also prevents your money concerns from invading your entire life,” she says. 

2. Practice self-compassion and emotional awareness

It’s important to have self-compassion as you navigate your financial journey. “You can recognize the legitimate structural challenges you're facing while also acknowledging your efforts,” White says.  

Another tip from White: Recognize anxiety symptoms and name them, rather than avoiding or suppressing these feelings. “Understanding your specific financial triggers helps you respond more intentionally,” she says. 

3. Break your financial plan down into small, manageable steps

“With money anxiety often comes money avoidance, which can exacerbate the problem and make anxiety and avoidance even worse,” White says. “A great first step is to simply start looking at your bank accounts and credit card statements. If saving feels too overwhelming, start by just looking.” 

4. Curate your social media 

White recommends establishing healthy boundaries around financial comparison. She suggests unfollowing people on your social media apps who you’re constantly comparing yourself to—whether you know them in real life or not. If you’re not constantly seeing people online share their shopping hauls or pricey vacations, you’re less likely to think about impulse buying hundreds of dollars of new clothes in one go or booking that trip to Italy you can’t comfortably afford. 

5. Prioritize activities that don’t require spending money

White suggests identifying activities that align with your values but don't require spending money. “I think younger generations forget the day and age when we used to just hang out at each other's homes and not everything we did involved spending money,” she says. “These experiences remind us that so many of life's most meaningful moments don't have to involve money, which can help maintain perspective when financial anxieties feel overwhelming.”

6. Talk about money with people you trust

White recommends having honest conversations with friends about what your budget is. In fact, Intuit’s 2025 report found that 65 percent of young adults want more open conversations about money.

These chats don’t have to be uncomfortable, according to Cazem Potts. “Whether it’s with a friend, partner, or colleague, normalizing discussions about salary negotiations, saving strategies, or long-term financial goals can provide clarity, reduce stress, and even uncover helpful advice.” 

7. Create mindful habits to stop impulse spending

If you find yourself impulse buying too much, try Cazem Potts’ "24-hour rule." Wait a day before making any non-essential purchase to see if it’s really worth it. Unsubscribing from promotional emails, unfollowing influencers, using cash instead of cards for discretionary spending, and setting a monthly "fun fund" can also help curb unnecessary splurges without feeling deprived, according to Cazem Potts. 

8. Build an emergency fund 

An emergency fund is a cash reserve that's specifically set aside for unexpected expenses that may pop up, like a car repair or a vet bill. Cazem Potts recommends putting away as little as $5 to $10 regularly to build up a cushion for those unexpected curveballs life may throw your way. “It's not just about the money,” she says. “It's about sleeping better at night knowing you've got your own back.”

The bottom line

Money stress is real, but small, intentional changes can make a huge difference. “Think of managing your finances as part of your self-care routine,” Cazem Potts says. “Just like exercise or a skin-care regimen, set aside time in a judgment-free zone, grab your favorite snack or beverage, and check in with your finances.” 

While planning for the future is important, so is being in the here and now. And striking the right balance isn’t all about sacrifice—it’s about being intentional with your money, according to Cazem Potts. “The key is prioritizing what truly adds value to your life while making sure your future self is set up for success,” she says. 

That could mean setting aside a “fun fund” for guilt-free spending, automating savings so it happens effortlessly, or adopting the “save-while-you-spend” mindset—matching non-essential spending with a savings deposit, for instance, according to Cazem Potts. She also adds that "financial wellness and overall personal empowerment isn’t about deprivation—it’s about designing a plan that allows you to enjoy the present while still building long-term security."

Managing your finances can seem like a stressful undertaking. But, with small steps and self-compassion, building out healthy financial habits—and boundaries—can become easier.