Member Article

Every 3 in 4 Gen Z suffers from poor mental health because of chaotic personal finances

74% of Gen Z admit that managing their finances is causing them to suffer poor mental health, with half (50%) also saying they deliberately avoid checking their bank account, according to the new research by W1TTY.

The struggles are particularly bad among women, with 82% of 18 to 24-year-old women saying managing their personal finances causes stress and anxiety.

Smart finance app W1TTY surveyed 2,000+ 18-24-year-olds in the UK on their financial habits and attitudes towards savings and investments, as part of its Gen Z personal finance index.

When it comes to the generation’s top financial concerns for 2022, almost one in five (18%) worry they won’t meet their savings targets, 16% are concerned they won’t be able to pay their bills, and a further 16% worry about maintaining a stable income this year.

Ammar Kutait, Founder and CEO of W1TTY, said: “Our data shows that many young people are struggling to manage their finances and need better support. W1TTY is solely based on this proposition. We don’t want our younger generation feeling anxious or worried about money - it could have significant long-term consequences.

“We want to turn money management into something positive through W1TTY, to ultimately support a healthier mindset when dealing with personal finances.”

Despite their anxieties, it seems many young people are relying on other means of finance to stay afloat, using credit cards (17%) and bank loans (10%) to pay for housing, utility bills, and their day-to-day activities. As a result, more than half (52%) are in debt, with the average Gen Z in £1,109 of debt before any student loan balances.

W1TTY secured their EMI license from the FCA last year and will be launching in the UK in 2022. The UK-based fintech is dedicated to supporting young people with their finances, by providing banking solutions that are smarter than a bank including financial education, tailored advice, 24/7 access to advisors, and industry-leading rewards programs. The app is already operational in Portugal, Poland, Lithuania, and Spain.

This was posted in Bdaily's Members' News section by Company .