The Impact of Financial Stress on Anxiety Levels Among Young Adults

Emotional burdens seem to be to be the most hype issue nowadays among youngsters. Important life-changing transitions such as the transition from school to work, entry into financial independence, and adopting a lifestyle mainly governed by societal expectations mark this time of the youth. These transitions are laden with burdens like educational loans, shaky job prospects, or a rise in living standards. The inability to manage all these pressures creates a high psychological toll in the form of anxiety, depression, and even suicide. This paper thus narrows its focus on financial stress and anxiety in terms of occurrence, effects, and management strategies. 

Understanding Financial Stress and Anxiety 

Financial stress is defined by the feeling of being overly burdened by financial obligations or by being unable to maintain financial projections In terms of young adults, these include expensive rates of education as well as the unpredictable job market and social pressure. Anxiety, in its classification, is a condition where people manifest symptoms such as undue worrying, fears, or anxiety concerning perceiving or real threats. It is the precondition of all anxiety that is triggered by the expectation of financial failure and markup stability dominating the thoughts of a person. 

American Psychological Association, in its survey done in 2020, reported among the top categories in which young adults have had an experience that 68% of that population reported money as a considerable source of stress. Doing away with such persistent worry over financial instability would do more than improve mental health; it would break the vicious cycle built with fear and resource efficiency. 

Causes of Financial Stress in Young Adults 

• Student Loan Debt: Soaring educational costs have now saddled so many young adults with substantial student loans. For many, repaying these loans would probably last for decades, including soaring interest rates. According to the National Center for Education  Statistics (2023), student loan debt averaged over $37,000 in the U.S. That means a young adult would have a long-lasting financial toll. 
• Unstable Employment: At times, the job market is the younger adults’ short-lived security and a gig-oriented job without a safety net. This kind of ambience translates to daily concerns about their uncertain future.
• Earnings from House Rent: The migration population increase and burgeoning population entities promote rapid urbanization, and pressure for housing creates unmanageable rent and property costs. All too often, one young adult can afford housing by forgoing other essentials, increasing pressure further. 
• Social Pressure and Comparison: Social networks have increasingly provided a forum where there is a need for constant comparison. Young adults are exposed to the most edited photos of their peers achieving great heights in their financial lives, which leads to feelings of inadequacy and results in an urge to overspend to keep up with the lifestyles that they perceive (Keles et al., 2020).  
• Lack of Financial Literacy: Young adulthood comes with a knowledge or a skill gap in many young adults on how to effectively manage their finances. Most of the time, this translates to poor financial decisions such as accruing credit card debt, dismal savings for emergencies, and so much more.

Read More: Teaching Financial Literacy for Better Mental Health

How Financial Stress Leads to Anxiety 

There is a clear connection between financial stress and anxiety: the chronic worry about money can trigger the body’s stress response, resulting in high levels of cortisol. The brain’s regions such as the amygdala and prefrontal cortex, which are significant for emotion regulation, are affected by cumulative exposure to cortisol. Such changes lead an individual to be more vulnerable to anxiety disorders (Sinha, 2019). 

Financial stress also causes damage to self-esteem. In particular, Young adults, often carry the weight of societal norms that link financial viability with self-worth. This only compounds the feeling of failure when, for one reason or another, the individual faces financial difficulties. Thus lack of self-worth and uncertainty regarding the prospects ahead flavor the atmosphere that helps anxiety thrive. 

This has led to behavioural changes that further aggravate feelings of anxiety. Young adults experiencing financial challenges may withdraw socially, forget personal hygiene, or engage in unhealthy coping mechanisms such as alcohol and drug abuse. The effects of these behaviours are not only felt in mental health but also create more sources of stress.

Read More: The Gen Z Trend of Fake-Flexing: Self Affirmation or A Cry For Validation

Consequences of Mental Health 

• Chronic Anxiety: Continuous financial tensions bring about generalized anxiety disorder (GAD) with overwhelming worry, irritability, and restlessness. 
• Depression: Financial strains nurture hopelessness and hence depression. They may make people feel trapped, as they cannot see a way out of the financial mess. 
• Burnout: The continuous balancing act of managing finances with other responsibilities leaves an individual emotionally drained, a core component of burnout. 
• Physical Health Implications: Financial stress and anxiety have physical manifestations such as headaches and gastrointestinal problems, in addition to poor immune response. 
• Relationship Strain: Financial bumps often have aa spilloverr effect on relationships, causing arguments and reduced emotional intimacy. 

Mitigating Financial Stress and Anxiety 

• Finance Literacy: Educating young adults about budgeting, saving, and managing debt can empower them to make informed financial decisions. Schools, colleges, and workplaces should prioritize financial education programs. 
• Professional Intervention: This involves seeking financial professionals and therapists to help individuals face both the practical and emotional impacts of financial stress. Financial advisors can give ways to cut down on debts while therapists can provide different coping mechanisms to reduce anxiety.  
• Mindfulness and Self-Care: Practices like mindfulness meditation and yoga can help individuals regulate their emotions and reduce anxiety. Regular physical activity, adequate sleep, and a balanced diet also play a crucial role in mental well-being.
• Setting Realistic Goals: If one could think of tangible but achievable financial goals for directing his efforts and eliminating overwhelming feelings, he would be well on his way. It’s less daunting to divide long-term goals into smaller, chunked pieces.  
• Community and Social Support: Opening up to some trusted friends or family members about your financial problems would relieve huge burdens emotionally and give you some practical advice in return. These support groups can also be very fruitful to their members.  
• Minimize Social Media Addiction: Reducing time spent on social media can help young adults focus on their progress rather than comparing themselves to others. 

Conclusion  

Financial stress is a pervasive issue for young adults, significantly contributing to anxiety levels. The pressures of managing debts, navigating unstable job markets, and meeting societal expectations can take a substantial toll on mental health. However, through financial literacy, access to professional support, and systemic changes, young adults can learn to manage financial stress effectively and reduce its impact on anxiety. 

Addressing financial stress is not just an individual responsibility but a societal imperative.  By creating supportive environments and equipping young adults with the tools to navigate financial challenges, we can foster a generation that is resilient, confident, and capable of achieving financial and emotional well-being.