A strained economy and disturbed sleep: Why do 70% of Generation Z wake up worried about money?

 

Generation Z

A strained economy and disturbed sleep: Why do 70% of Generation Z wake up worried about money?

With inflation soaring and unemployment rising, Federal Reserve Chairman Jerome Powell points out that recent graduates are facing difficulties. Generation Z (those born between the mid-1990s and early 2000s) is experiencing unprecedented financial anxiety, with 7 out of 10 reporting losing sleep over financial worries.

Instead of adopting practical solutions like budgeting or building an emergency fund, many resort to "passive comfort" via screens. Some spend hours "bed rotting," while others simply watch television or indulge in the "catastrophic scrolling" of their phone screens on social media—practices that increase anxiety rather than alleviate it.

Mattress company AmeriSleep analyzed how the economy is affecting Americans' sleep, and nearly half admitted they aren't getting any rest due to financial stress. The same percentage said their sleep has worsened since President Trump began raising tariffs, and they are so worried about the economy that they wake up in the middle of the night.

But Generation Z is suffering the worst... The promising young minds of the future are the generation most likely to stay up thinking about money, with 7 out of 10 unable to sleep due to extreme stress about rising prices, rents, and job security.

How to stop browsing negative news - and feel more confident about your money?

Avoidance strategies may offer a sense of control amid global uncertainty. But in reality, avoiding direct confrontation with financial matters and seeking a quick dopamine rush only delays facing anxiety.
The report warned: “It may seem comfortable at first, but it could disrupt your sleep rhythm and make you feel more tired later on,” according to Fortune magazine, as reported by Al Arabiya Business.

Instead of burying your worries in the back of your mind—only to have them resurface suddenly in the middle of the night—experts suggest setting aside a “worry window” earlier in the day. That is, give yourself 15–20 minutes to write down your worries and any potential solutions, “then remind yourself that you’ve already addressed them when they reappear at night.”

For the specific problem of distracting browsing, the report recommends enforcing a "phone ban" an hour before bedtime, or placing all devices in a completely different room to avoid temptation. However, you'll need to find another activity to do with your thumbs while you relax—otherwise, you risk relapse.

The report warns against "replacing the habit of browsing the internet with a quieter activity, such as reading a physical book, journaling, or doing light stretching exercises." "Your mind needs something to fill this time rather than simply giving up this behavior."
And when it comes to feeling more confident about your finances? Researchers recommend setting small, achievable financial goals, such as building an emergency fund or paying off a small debt, to boost your momentum.

The report concludes that "monitor your income, expenses, debts, and savings for at least a month to accurately assess your financial situation, rather than relying on assumptions or fears." "Knowledge often alleviates the anxiety stemming from a feeling of lack of control or ignorance regarding financial decisions."