Younger Americans are planning more – but feeling it less

A pair of new surveys reveal distinct generational patterns in how Americans prepare for financial uncertainty – and who’s bearing the emotional brunt.

Planning grows across generations – but looks different by age

As inflation and economic instability continue to cast long shadows, a growing number of Americans are stepping up their planning efforts—but not all generations are experiencing those efforts the same way.

According to the two newly released surveys from Beyond Finance and Quicken, younger Americans are embracing new financial tools and proactive behaviors at higher rates than their older peers, yet they're also feeling more overwhelmed and emotionally taxed by the process.

Americans of all ages are adopting new strategies to bolster their financial resilience.

In Beyond Finance’s study of 2,000 US adults, 60 percent say they plan to increase their financial understanding this year, with a strong push toward personal accountability: 74 percent report handling their finances themselves, and 69 percent are tracking their spending, or have plans to do so.

Across generational lines, planning takes varied forms. The Quicken survey, which polled 1,000 US adults, found that boomers are leading the way in traditional preparedness:

• Sixty-seven percent have updated their wills – a wise way to help prevent family feuds – compared to just 24 percent of Gen Z and 34 percent of millennials.
• Forty-seven percent of boomers have documented the location of important papers and accounts, more than double the rate among younger groups.

Meanwhile, younger Americans are adapting to modern planning tools:

• Millennials (32 percent) are the most likely to maintain digital copies of key documents, outpacing older generations.
• Gen Z and millennials are also more likely to have family emergency plans in place – a measure that just 12 percent of boomers have taken.

“There’s a growing movement around financial self-empowerment,” Lou Antonelli, COO at Beyond Finance, said in a statement. “We’re seeing people move from avoidance to action.”

Emotional toll heaviest on the young

Despite these gains in planning, younger generations are struggling to feel in control. More than two-fifths of millennials (47 percent) and Gen Z (43 percent) say financial stress is affecting their quality of life, with many reporting that uncertainty is robbing them of joy with loved ones, according to Quicken.

Stress is also clouding judgment: 60 percent of Gen Z and 56 percent of millennials say anxiety impairs their ability to make sound financial decisions. That compares to just 18 percent of boomers, suggesting that younger generations may face not just more volatility, but more emotional vulnerability.

Beyond Finance’s data echoes this theme. Only 13 percent of all respondents feel “very good” about their financial situation, and self-trust remains a hurdle. Just 50 percent say they have “a lot” of trust in their ability to manage money – a figure that drops slightly for women and younger respondents.

“Americans across all generations are feeling the weight of economic uncertainty, but in noticeably different ways,” Eric Dunn, CEO of Quicken, said in another statement. “While boomers feel blindsided by inflation, younger Americans struggle more with the emotional impact life planning has on them.”

Bridging the confidence gap

The disconnect between effort and ease presents an opportunity for financial advisors. As Americans take the initiative – especially digitally native younger investors – they’re also seeking validation and support.

Beyond Finance’s research suggests the groundwork is there: people are using budgeting apps, engaging with podcasts, and talking more openly with family members about money.

While the surveys don't delve into the role of advisors, it's clear financial professionals can also help close the loop by:

• Supporting digital record-keeping, which can help younger clients feel better organized;
• Incorporating behavioral finance tools to possibly help reduce emotional strain and increase clarity; and
• Facilitating family planning conversations in order to bridge intergenerational gaps, especially around estate preparation.