“They are just getting started and trying to gain a foothold in general,” said Molly Passantino, senior retirement and annuities specialist at TD Ameritrade. “Now there is a further setback with the coronavirus. ”
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About 1 in 3 young Americans reported being laid off or on temporary leave, TD Ameritrade found.
The numbers are particularly striking for Gen Z (aged 15-22), who are almost three times more likely to be made redundant than their older counterparts. One reason is that younger workers are more likely to be in service positions.
Meanwhile, 63% of young Americans fear losing their jobs, compared to 52% of all Americans.
The TD Ameritrade survey focused on young Americans between the ages of 15 and 29 and was conducted online between February and April. Since that time, the economy has struggled to reopen as the number of coronavirus cases increases in parts of the country. Meanwhile, Congress struggled to agree on additional stimulus relief.
The tasks that cause the most financial exhaustion, according to survey respondents, are saving and budgeting, possibly due to the more limited cash flow that many experience.
Next are car maintenance, buying insurance, investing, managing and paying off student loans, planning for retirement, or sharing bills with friends or roommates.
Meanwhile, a majority of young Americans said they “live like they’re broke” rather than beyond their means. This goes for 62% of Gen Z and 59% of young Millennials.
As both generations feel exhausted by their short-term financial needs, this means that long-term planning is abandoned. More than half of the respondents agreed with the following statement: “Just thinking about retirement makes me feel exhausted”.
Millennials, in particular, are more likely to think they don’t know where to start with retirement planning, according to the survey.
One key to combating this is remembering that there are resources to help you plan, whether it’s a professional financial coach or a budgeting app, Passantino said.
“It’s not something you have to do on your own,” she added. “If you need help, there are a lot of resources you can get for your specific situation. “