A new national study conducted by Northwestern Mutual reveals that financial uncertainty is significantly impacting the mental, emotional, and physical well-being of Americans, with nearly 7 in 10 individuals (69%) reporting feelings of depression and anxiety related to money, an increase from 61% in 2023. The 2025 Planning & Progress Study findings highlight how economic instability is infiltrating many aspects of daily life, particularly for younger generations.
Financial Stress and Mental Health on the Rise
According to the study, Gen Z and Millennials are experiencing the most severe emotional effects. Roughly 39% of Gen Z and 38% of Millennials say they feel depressed and anxious about finances every week, marking an 8- and 5-percentage-point rise from the previous year, respectively.
In addition to heightened anxiety, 63% of all Americans report that financial stress has disrupted their sleep. For Gen Z and Millennials, over half (53% and 50%, respectively) say financial concerns keep them up at night at least once a month.
Strains on Relationships and Work
The consequences of financial worry extend into interpersonal relationships and workplace performance. Among married or cohabitating individuals, 57% acknowledge that financial stress has affected their relationship—a 13-point increase from 2023. Within this group, the effect is most pronounced among Gen Z (71%) and Millennials (75%).
Social and professional life are also being impacted. More than half of respondents (55%) say they’ve missed a social event due to money worries. Nearly half (49%) report that financial stress has affected their job performance, up from 36% in 2023. Gen Z and Millennials again reported higher-than-average rates, with 74% and 71%, respectively, missing social events, and 64% and 58% noting declines in workplace performance.
Forty percent of Americans say financial worry has caused physical illness, a figure that climbs to 56% for Gen Z and 53% for Millennials.
Finances Viewed as Top Weakness
When asked to rate different aspects of their lives, more Americans characterized their finances as “weak” than any other category. Forty-five percent selected finances, compared to 28% for both physical and mental health, 27% for friendships, 26% for job stability, and 22% for family relationships.
This sentiment was consistent across all genders and racial backgrounds. Women were especially likely to describe finances as their weakest area (50%), followed by physical health (30%). Among men, 40% rated their finances as “weak,” followed by friendships (27%).
Generationally, Gen Z (52%) and Millennials (51%) were more likely to report financial weakness than Gen X (48%) or Boomers+ (32%).
Financial Advisors Associated with Greater Confidence
The data also indicates a stark contrast in financial confidence between those with and without professional financial guidance. Among individuals working with a financial advisor, 76% describe their finances as “strong,” compared to just 44% of those without an advisor.
For Gen Z, 63% of those with a financial advisor report financial strength, versus only 42% of their peers without one.
Methodology and Background
The Harris Poll conducted the 2025 Planning & Progress Study on behalf of Northwestern Mutual. The survey collected responses from 4,626 U.S. adults aged 18 and older between January 2 and January 19, 2025. The data were weighted for demographic representation, including age, gender, race/ethnicity, region, education, income, and household characteristics.
Northwestern Mutual, a financial services company with more than 165 years of history, sponsors the annual study as part of its ongoing research into American financial behaviors and perceptions. The company supports clients through comprehensive planning services and has nearly 8,500 financial advisors nationwide.
For more information, the full survey methodology is available through Northwestern Mutual.
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