Content Warning: This story includes references to suicide.
After being laid off from two jobs in the last six months, 25-year-old Hakeem Shabazz-Norris is financially strapped and stressed.
“I’ve become so used to not getting sleep, working my ass off, missing so many things and always having a full schedule just so I can have money in my bank account – which isn’t good, but it’s just the fact of the matter,” Shabazz-Norris told Reckon.
Another fact: These financial stressors are also making young people like Shabazz-Norris emotionally ill. In another sense, it’s literally killing many of them.
From paying for increasingly high rent costs to paying student loan debt payments for the first time, the young and the broke are facing more financial stressors than ever. According to the Deloitte Global 2023 Gen Z and Millennial Survey, more than half of Gen Zers and millennials report living paycheck-to-paycheck.
Dr. Zainab Okolo, the senior vice president of policy, advocacy and government relations at The Jed Foundation (JED) said people ages 18 to 28 are particularly vulnerable to debt-related psychological distress and disorders.
JED, a nonprofit that protects emotional health and prevents suicide for teens and young adults, sees financial stress as a problem for young people across the nation.
One 2020 study published in the American Journal of Epidemiology considered the link between financial strain and suicide, concluding: “The finding that the relative odds of attempting suicide was 10 times higher when comparing respondents who lost a job with those stably employed is especially germane given that the U.S. unemployment rate recently reached its highest level in decades.”
Dr. Okolo explains that young people are particularly susceptible because they have fewer assets and less of a safety net when it comes to finances.
”This is really an overwhelming challenge for them,” she said.
Money on my mind and my mind on my money
On a good month, Shabazz-Norris, who lives in New York City, makes close to $1,200, most of which goes toward rent, food and transportation.
As a photographer who works part-time in retail and at a movie theater, low wages, the threat of unemployment and student loan debt loom over Shabazz-Norris’s financial future.
While working more hours and jobs to make ends meet is imperative to keep a roof over his head, he also sees how it has impacted his mental health.
“Because I succumb to that grind culture mentality, I think when I don’t work all the time it also impacts me because I’m not making money. I might have more free time in a literal sense, but I’m still worried and stressed about the things I need and can’t pay for,” Shabazz-Norris said.
Shabazz-Norris says his friend group recognizes the collective brokeness of their generation. Some young people feel so financially strapped that they are avoiding social engagements and friends just to keep their money in their bank account, which can lead to feelings of loneliness and isolation, which exacerbate the finance-related stress.
“We all kind of understand that we just live in a time where sacrifices have to be made, whether it’s your mental health or your money — has to be one of the two,” Shabazz-Norris told Reckon.
Read more: Biden just forgave billions more in student loans. Gen Z says it still isn’t enough to earn their votes
Now that it’s warming up in New York City, Shabazz-Norris and his friends head to parks and outdoor events to meet up and hang out for free. He even schedules FaceTime catch-up sessions with friends and family who live out of state as a way to socialize for free.
For Shabazz-Norris, financial angst has not only changed how he hangs out with friends but also how he dates and finds romantic connections.
“I just don’t feel comfortable with somebody else paying if I’m asking somebody out. I feel like I shouldn’t be dating if I’m poor, so I’m choosing reality and rent over dates,” Shabazz-Norris said.
The young and the broke are not okay
Shabazz-Norris’ experiences are common among young people today, Dr. Okolo explains.
“These [financial] challenges directly intersect with a sense of wellness, wholeness, independence and autonomy. So we can’t ignore the importance of financial stability and solvency when we’re thinking about youth mental health and their ability to thrive and move forward,” Dr. Okolo said.
Just like most forms of stress, financial stress is a risk factor for anxiety, depression and even suicide. According to a 2010 study published in the Journal of Economic Psychology, this is exacerbated for young people who have less access to and experience with financial literacy.
Many people across the country are dealing with what the American Journal of Epidemiology says are the four main financial stressors that have a correlation to suicide: debt, homelessness, low income and unemployment.
Because people who experience stress from financial issues are 20 times more likely to attempt suicide than those who do not experience this type of stress, young people who grow up in households with lower incomes are more susceptible to face financial stressors than those who do not, according to a 2020 Duke Health study.
Financial stress has pushed many young adults to lean on the stability of their families.
After facing economic struggles when the COVID-19 pandemic began, 17.8% of young adults aged 25 to 34 moved back home with their families – the highest share recorded since 1960, according to the 2023 report by the National Association of Realtors. The realtors’ association’s most recent research shows that in 2022, 15.6% of young adults aged 25 to 34 still live at home with family.
“A lot less of our youth populations launch, meaning leave their parents’ homes or leave and come back to live. So the average ages of actually launching out and getting out on your own are becoming later and later,” Dr. Okolo told Reckon.
According to a 2023 BrightPlan study, a digital financial adviser, 64% of people feel their relationships have been negatively impacted by the financial strain they’re under. Another 29% skipped a wedding or a birthday party because they simply couldn’t afford to buy a gift.
With financial instability at the top of mind for many young people, socializing looks more like a luxury according to a 2022 study conducted by Qualtrics on behalf of Intuit Credit Karma, which found the cost of living crisis has impacted about a third of Gen Z’s ability to spend time with friends.
“I want to say unequivocally, the cost of living is high. For many people, this then interacts and impacts their ability to invest in things like social activities and travel. It even affects if they’ve gone away to college and if they can afford to visit their families consistently or even come back home during the holidays,” Dr. Okolo said.
Screams from the rooftop: “I ain’t got it”
As the cost of living increases, wages remain stagnant and housing becomes less affordable, younger generations are advocating for sweeping change in the economy — and by extension for the good of their own health.
“There’s no guarantee that we’re (Gen Z) going to be able to buy a house and there might not even be a future where we have Social Security or Medicare,” Elijah Manley, CEO of Youth Victory Fund, an advocacy group encouraging young people to run for political offices, told Reckon, referring to federal entitlement programs that provide income and healthcare for older Americans.
Gen Z and millennials are making unprecedented lifestyle decisions based on their economic stability like no other generation has done before, including delaying having children and delaying the home buying process due to student loan debt.
“We want an economy that works for us,” Manley told Reckon.
Dr. Okolo says when young people express their struggles with finances it helps others know they aren’t alone and breaks down stigma around money and mental health.
“You are absolutely not alone if you’re struggling with finances. If you’re wondering or concerned about your fiscal future, you’re not alone. There’s so much hope and opportunity to educate yourselves, get resources and start paying attention to the financial freedom that you want,” Dr. Okolo told Reckon.