For generation Z and millennial people in all countries of the world, the level of anxiety is high. According to a Deloitte Millennial Survey 2020 survey published Thursday, almost half of Gen Zs (48%) and millennials (44%) say they experience stress all or most of the time. The causes of high stress are rooted in financial problems, family well-being, and career expectations. But don’t put the Covid-19 pandemic at the top of this list.
The coronavirus outbreak has led to an economic downturn in the US and around the world, and even with some signs of recovery, uncertainty continues to put pressure on the global economy and markets. But since the pandemic began, some young people have become more positive about their short-term financial prospects and have generally become less stressed, as the annual Deloitte poll showed.
Wesley Richardson, a recent graduate of the University of Southern California, said staying home during a pandemic led to increased savings and financial awareness. “Now that I have graduated, I thought that I want my priorities to be the ones that I spend my money on as soon as I live alone. I have to sit at home all day and think about that. ” it helped me do it … I’m not really worried about living a luxurious lifestyle; I’m just reorienting, “said Richardson.
Millennials and Gen Zs are most worried about finances and careers around the world, according to a Deloitte survey conducted both before and after the pandemic.
Millennium Review Deloitte 2020
An event like Covid-19 can be hopeless, especially when it comes to finances, said Brad Klonts, a financial planner and financial psychologist, but that makes it even more important to take an approach like Richardson.
“The biggest problem is to avoid this learned feeling of helplessness when you have an external locus of control and you have circumstances when your life gets out of control,” Klonts said. “These are people who find ways to find opportunities and have a way of thinking – these are the people who will come out of this success,” said an expert on behavioral finance.
Michelle Parmeli, Deloitte’s chief employee and chief specialist in the world, says that millennials and W generals around the world take great personal responsibility for decisions, which includes both finances and not only the climate, but also relations with business and employers. ,
The 2020 Deloitte Millennium Review was conducted in two phases. The first gathered responses from more than 18,000 people, including millennials in 43 countries and Gen Z people in 20 countries, from November 2019 to the first week in January 2020. The second, smaller “impulse” study was conducted in April and May 2020, as a result of the coronavirus pandemic among 9,100 people in 13 countries.
During the subsequent examination, the level of anxiety decreased. Millennials, who said they feel stressed all the time or most of the time, fell 8%, and this decrease in stress was consistent with Gen Zs.
The financial situation is a major stressor
Finance remains a special stress point. Most millennials (67%) and Gen Zs (64%) say they are often worried about their financial situation, and among both generations, a subsequent study found a decrease in those who believe that their personal financial prospects will improve over the next year.
Among US respondents, overall financial problems are even higher, cited by 77% of millennials and 66% of generals Z. The 12-month financial forecast also saw a significant decrease: American millennials, who believe that their situation will improve, will fall from 54% to 42%, and among generals Z – from 45% to 36%.
A subsequent Deloitte survey after the outbreak of the virus revealed that almost a third (31%) of millennials and 38% of Generation Z representatives say that they will not be able to recover financially if they face high costs during this time. However, respondents also indicated fewer problems paying their last bills, which could be caused by a combination of deep-rooted savings, as well as government efforts to provide financial assistance around the world. The stress level associated with everyday finances has declined among both generations.
US respondents identified more problems with paying bills than the average world colleagues, especially American millennials: in a pre-pandemic survey, 47% said they missed a payment in the past six months; this rate dropped to 39% in the subsequent observation of coronavirus, but was still significantly higher than that of other generations of peers around the world.
Many young people around the world are trying to meet sudden financial needs, but since the beginning of the pandemic, millennials and generals Z. have seen some short-term financial relief.
Millennium Review Deloitte 2020
Although the level of personal stress is still high, the decline recorded during the survey after the outbreak of Covid-19 may be specifically associated with a decrease in obligations such as travel, including travel to work, and a more flexible environment created A sudden mass migration to remote work, Parmeli said. According to her, such simple changes as sitting a cat or their children on the table next to them, contribute to strengthening the sense of “true” self-consciousness presented at work. A Deloitte poll found that more time with family and a general slowdown in life can also contribute to this.
Sixty-nine percent of millennials and 64% of Z generals said that being able to work from home would reduce stress in the future, and more than half of both generations (56%) said that if they could work from a distance, they would go beyond the main cities.
It should not come as a surprise that young citizens of the world were viable, Parmeli said, given the economic maelstrom in which they grew up and began their working lives. “They faced many difficulties … during the Great Recession and are here now,” she said. “Millennials learned from the Great Recession. “They learned from watching their parents and what they experienced, and they are more circumspect than previous generations … They should be more thoughtful, and we know what they said before the pandemic.”
Sustainability does not mean that these generations have escaped economic damage from recession. For many, the pandemic has led to job loss, or at least shorter working hours, lower incomes and bonuses, unpaid leave and the withdrawal of job offers.
Workers at Millennials and Gen Z around the world are facing serious consequences of the Covid-19 crisis.
Millennium Review Deloitte 2020
“Of course, people were affected by their ability to work, but they showed willingness in terms of financial responsibility, budgeting, savings and investment and did not have a high degree of loans,” said Parmeli.
The pre-pandemic millennials said 40% of discretionary spending goes into savings and investment; with “fun” expenses by 48%. This savings and investment figure is much lower for Gen Zs (35%), but Richardson’s example suggests that the youngest generation can see the current crisis prompting them to focus more on financial security at the beginning of their adult lives.
Richardson said he used this time at home to learn more about financial preparedness. “Definitely more conscious about savings … I read books on financial independence. Having to stay home all day and think about what to do with my time helped me do this, ”said a recent USC graduate.
Klonts said some of the smart personal finances were forced. “Many had to tighten up, many earn less money and adapt to this, which gives us the opportunity to have a clearer look at how they spend their money,” he said. But Klonts added: “Some people have really benefited from this opportunity. Some people used this to take a closer look at their cash flows, spending habits …. I think people really understand why they need an emergency fund. ”
As the saying goes: never let a crisis go in vain.
“This type of crisis provides you with a great opportunity to develop a plan,” Klonts said. “Despite the fact that cash is not being received right now, there is a real opportunity to look at the development of the plan, first pay yourself and do what is most important.”
A masked couple is sitting on a bench watching the sunset over the Manhattan skyline in Domino Park, Brooklyn, amid the coronavirus pandemic on May 21, 2020 in New York.
Alexy Rosenfeld | Getty images
Parmeli said that a high level of anxiety among young people can lead to a greater understanding that they cannot afford to be distracted. Financial stability and an understanding of how quickly things can change in terms of perspective are crucial, especially in the early stages of careers, when these generations can begin to support others, both children and elderly parents. “They are so conscious that they should focus on that,” she said.
Short-term stress reduction should not be confused with an overall positive outlook among these generations. In fact, far fewer millennials (26%) and Gen Zs (28%) expect to be happier than their parents. And the mood indicator, calculated according to the results of the annual Deloitte poll, which takes into account economic sentiment, personal finances, social / political situation, the environment and the impact of the business world on society, are recorded pessimism that increased in Covid-19 after a review With a score of 50 representing half of the respondents who believe that progress has been made, both millennials (32) and Gen Zs (35) were well below that mark.
In the United States, in particular, the millennium indicator fell from 52 to a pandemic to 39 during it. For Gen Zs, it dropped from 39 to 34.
“They were certainly more pessimistic than in the past, and in the study of the pulse during the pandemic, even less optimistic,” said Parmeli.
—Additional reports by Kelsey Johnson, CNBC Summer 2020 News intern and CNBC Eric Rosenbaum
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