Financial struggles risking mental health of Gen Z, expert says

Experts warn of the potential health risks as new research shows how Gen Z is faced with financial stress in addition to pressures from social media.

The majority of younger Canadians are feeling stressed about their financial situation, according to a new survey, while at the same time facing few job prospects, stagnating wages and high unemployment.

They’re also reporting social media is adding additional, unrealistic pressures.

And experts say that if left untreated, stress can lead to more severe mental and even physical health issues.

“There’s always been an element of ‘keeping up with the Joneses,’ but now you’re seeing it constantly through social media, digital advertising and algorithms that read data on our phone,” says Kaylie Tiessen, chief economist at the Canadian Shield Institute for Public Policy.

“Whether they’re influencers or friends and family — nobody’s posting the ‘grumpy’ picture. Maybe occasionally, but it’s not what you’re inundated with every day.”

A TD Bank survey asked more than 500 Gen Z Canadians (ages 18-28) about their financial well-being, and more than half identified as young professionals who have been in the workforce one to five years.

Fifty-three per cent of those surveyed said they felt compelled to maintain a successful image on social media, while nearly two in three (65 per cent) believed they were falling behind their peers financially.

Sixty-six per cent said they felt pressure to hit financial milestones like buying a home or building wealth by a certain age.