The economic uncertainty brought on by the coronavirus has
spared no generation of American workers. But a recent survey found that young
professionals could be bearing the brunt of the financial stress.
One big consequence of that pressure is burnout, with 85% of
young Americans reporting they feel pushed to the limit in at least one area
when it comes to their jobs, managing their finances, studying or social media,
according to a recent survey from TD Ameritrade.
“They’re just starting off and trying to get their footing in
general,” said Molly Passantino, senior specialist of retirement and annuities
at TD Ameritrade. “Now there’s an additional setback with the coronavirus.”
About 1 in 3 young Americans reported that they had been
laid off or put on temporary leave, TD Ameritrade found.
The numbers are particularly stark for members of Gen Z
(ages 15 to 22), who are almost three times more likely to be laid off than
their older counterparts. One reason is that younger workers are more likely to
work in service positions.
Meanwhile, 63% of young Americans are worried they will lose
their jobs, versus 52% of Americans overall.
TD Ameritrade’s survey focused on young Americans ages 15 to
29, and was conducted online between February and April. Since that time, the
economy has struggled to reopen amid rising coronavirus case numbers in some
parts of the country. Meanwhile, Congress has struggled to agree on additional
stimulus relief.
The tasks that cause the most financial burnout, according
to survey respondents, are saving and budgeting, likely due to the more limited
cash flow many are experiencing.
That was followed by car maintenance, shopping for
insurance, investing, managing and paying for student loans, retirement
planning or splitting bills with friends or roommates.
Meanwhile, a majority of young Americans said they are
“living like they are broke” rather than above their means. That goes for 62%
of Gen Z and 59% of young millennials.
With both generations feeling frazzled by their short-term
financial needs, that means long-term planning falls by the wayside. More than
half of respondents agreed with the statement, “Just thinking about retirement
makes me feel burned out.”
Millennial women, in particular, are most likely to feel
that they don’t know where to start with retirement planning, the survey found.
One key to combating this is to remember that there are
resources to help you with planning, whether it be a professional money coach
or a budgeting app, Passantino said.
“This is not something you need to do alone,” she added. “If
you need help, there’s plenty of resources that you can get for your specific
situation.”
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