Financial Stress Traps Gen Z in Sleepless, Screen-Filled Spiral

Source: [1] 70% of Gen Z Are So Anxious About Money They Can’t Sleep—They’re Dealing With It by Bed Rotting and Watching TV Instead of Budgeting (fortune.com) [2] Gen Z Faces Financial Challenges, Stress, Anxiety and an Uncertain Future (forbes.com) [3] Gen Z's Financial Wake Up Call: Budgeting, Saving, and... (usatoday.com) [4] Gen Z's Financial Anxiety: Budgeting, Stress, and the Shifting... (ceoweekly.com) [5] Gen Z is Suffering a 'Midlife Crisis' Due to Job, Financial Stress: Study (nypost.com) [6] The New Money Mindset: Gen Z Is Treating Finances... (forbes.com) [7] Gen Z Faces Financial Challenges, Stress, Anxiety and an... (stress.org) [8] Gen Z Faces the Worst Financial Crisis of Any Generation as Soaring... (economictimes.indiatimes.com) [9] Gen Z's Financial Reality as Nearly Half Run Out of Money... (newsweek.com) [10] Sleepless Over the Economy: How Recession and Tariff Fears... (amerisleep.com) [11] The Rise of Bed Rotting: How and Why Americans Are... (amerisleep.com) [12] New Report Shows Gen Z Has More Serious Sleep... (sleepopolis.com)

A growing body of data reveals that 70% of Generation Z (born 1997–2012) report financial stress severe enough to disrupt their sleep, with many resorting to passive coping mechanisms like “bed rotting” and screen time instead of adopting proactive financial strategies. A 2025 Amerisleep study found that nearly half of Americans attribute financial stress to poor sleep, with Gen Z most affected—69% of whom lie awake at night worrying about rising prices, rent, and job insecurity . This aligns with broader trends: 50–70% of Gen Zers express extreme concern about insufficient funds, citing student debt, stagnant wages, and corporate layoffs as key stressors .

The economic pressures facing Gen Z are compounded by structural challenges. Over 60% of Gen Zers work multiple jobs or side hustles to make ends meet, yet 63% report running out of money monthly, and nearly half rely on family support to cover essentials like rent and groceries . Student debt, averaging $94,101 for Gen Z compared to $59,181 for millennials, further strains financial stability . Meanwhile, 47% of Gen Zers say their sleep has worsened since the start of 2025, with many linking this to inflation and trade policy uncertainty .

To cope, Gen Zers increasingly engage in avoidance behaviors. A 2025 Amerisleep survey found that 37% of Gen Zers “bed rot”—staying in bed for extended periods—to escape financial anxiety, while 57% scroll social media or watch TV to distract themselves . These habits, however, exacerbate the problem. Experts warn that prolonged screen time and irregular sleep patterns worsen mental health, creating a “vicious cycle” of stress and poor rest .

Despite these challenges, some Gen Zers are taking steps to improve financial resilience. Bank of America’s 2025 Better Money Habits study noted that 72% of Gen Zers are actively working to enhance their financial health, including automating savings and diversifying income streams . However, only 25% contributed to retirement accounts in the past year, and 55% lack emergency savings to cover three months of expenses . Experts emphasize practical solutions, such as setting a “worry window” to address financial concerns during the day, limiting screen time before bed, and prioritizing small, achievable goals like building an emergency fund .

The intersection of financial stress and mental health underscores a broader crisis. A McKinsey study found that Gen Z reports the worst mental health of any generation, with 38% experiencing a “midlife crisis” due to economic uncertainty . Social media’s influence on consumerism and unrealistic expectations further fuels anxiety, as Gen Zers compare their financial situations to curated online personas . While 61% of Gen Zers treat financial wellness as part of their self-care routine, systemic barriers like housing affordability and wage stagnation remain significant hurdles .

The data highlights a generation grappling with unprecedented economic pressures while seeking innovative ways to balance financial stability and mental well-being. As Gen Zers navigate this landscape, experts advocate for both individual action—such as budgeting and financial education—and systemic reforms to address the root causes of their stress.

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