Financial decisions are rarely easy, whether it’s buying your first car or home or deciding whether to refinance student loans.
The anxiety can be heightened for millennials who witnessed economic turmoil during the Great Recession as they weigh milestone financial choices as adults.
“Many [millennials] grew up and saw their parents lose a house or have to delay retirement,” says Brad Klontz, a financial psychologist and associate professor at Creighton University. “Of course, they are going to be anxious.”
In fact, a survey this year by insurance company Northwestern Mutual found that this generation not only has a stronger inclination to make financial plans compared with older generations, but also has a higher level of anxiety about whether they are following the right strategy.
The survey found that 66% of millennials (those born from 1981 to 1996) said they were “highly disciplined” or “disciplined” financial planners, compared with 60% of Generation X (born 1965-1980) and 52% of baby boomers (born 1946-1964). At the same time, 70% of millennials said their financial planning needs improvement. That’s compared with 68% of Gen Xers and 52% of baby boomers.
There are ways to reduce the stress of financial decisions. Start by identifying your attitude toward money. Then, take action in a way that’s tailored for you and turn to others who’ve been there.