Raise your hand if thinking about future finances makes you nervous. Don’t worry, we’re right there with you. Living in the now is often easier—and more fun. Booking a spur-of-the-moment trip to Greece with your BFFs? Sounds amazing. Adding those to-die-for front-row Eras Tour tickets to your cart? Say less.

The only (relatable) catch is…you don’t have that money on hand and your credit card statement is starting to look overwhelming. What’s fueling this trend, especially among Gen Z? One factor is that this generation would rather spend their money on life experiences than save for retirement, according to a June 2023 survey from credit reporting firm Experian. And frankly, who can blame them?

During the COVID-19 pandemic, Gen Z was in their teens and early 20s. At a time when they should have been experiencing traditional high school milestones, like prom and graduation, or could have been adjusting to dorm life in college, they were in lockdown—isolated from their peers and often grappling with poor mental health, per a 2021 Harvard University report.

The global pandemic had repercussions for everyone—but for Gen Z in particular, it may have brought about a shift in how they’re choosing to live. Prioritizing experiences over stuff, emphasizing time with friends, and rejecting hustle culture are just some of the ways this generation is setting themselves apart in a post-pandemic world.

But that doesn’t mean they’re not still stressed about money. In fact, according to a 2023 survey from accounting firm Ernst & Young LLP, less than 31 percent of Gen Z feels financially secure and 52 percent feels “extremely worried” about not having enough money. What’s more, almost 70 percent rate their current financial situation as “fair” or worse, with 32 percent rating it as “poor” or “very poor.”

Because of this, Gen Z is delaying life milestones—according to a 2024 Bank of America survey, half of those surveyed said they aren’t on track to buy a house and nearly half aren’t on track to save for retirement within the next five years. Nearly half—46 percent—still rely on their parents for financial help.

But the solution isn’t to stay paralyzed in a place of financial fear—and Gen Z knows it. As more and more people understand the strong link between mental health and financial stability, people are looking for ways to enhance their financial wellness as an extension of their overall wellness. Face it: You sleep a lot better at night when you’re not feeling guilty about a purchase, or wondering if you’ll be able to make rent next month.

According to certified financial planner Sabrina Rosh, CFP, director of financial planning at Ellevest, a financial planning website, getting a handle on your finances is simpler than you might expect. It all starts with creating a budget.

“We know people may cringe at the word ‘budget,’ but budgeting doesn’t have to be painful or restrictive,” she says. “You can budget for fancy candles or a daily latte—whatever indulgences make you happy. Budgets can be liberating, and once you get the hang of following a budget, you’ll automatically develop a healthier attitude toward money.”

When we’re living financially well, we tend to feel physically and emotionally well, too, according to Columbia University Irving Medical Center. On the other hand, a lack of financial wellness can lead to or worsen mental health issues—like anxiety and depression—and physical health issues—like insomnia, high blood pressure, headaches, and digestive issues—according to Mass Mutual, a financial services company.

Here’s how to create a budget: First, understand what your spending habits are—and what needs to change. Then, create your budget. Rosh suggests using the 50/30/20 rule, which allocates 50 percent of your budget to your needs, 30 percent to your wants, and 20 percent to your future self.

Ellevest, an investing platform created specifically with women in mind (because women often live longer, take more breaks in their careers, and get paid less) is one of many companies focusing on helping people become financially well. BrightDime, for instance, provides financial wellness services to help employees improve their spending habits, set budgets, and reduce debt. Similarly, Your Money Line offers financial wellness coaching for employees, including unlimited one-on-one coaching sessions, software that helps them budget, improve their credit scores, learn about money, and more.

“When you have clear goals and you’re investing your money toward the future, you feel better about making splurges in the present,” Rosh says. “You feel better about taking a spontaneous vacation, or buying yourself a daily little treat, or getting those pricey shoes you’ve been eyeing. We want you to live in the now—but we also want to send you off into a future that affords you more.”