With Inflation on the Rise, Financial Confidence Declines Among Millennials and Gen Z in America

Washington, DC, March 17th, 2022 — With headlines announcing that inflation has hit a four-decade high, a new Ipsos poll conducted on behalf of BMO Harris Bank has found that Americans are struggling with their financial confidence as they feel the pinch in their pocketbooks. The latest BMO Real Financial Progress Index, has shown a steady decline in American's financial confidence since the middle of last year and is down three points from year-end.

While 75% of all Americans say they feel confident about their finances, this falls to 65% for Gen Zers (those aged 18-24), a figure that has declined 10 points from the previous quarter. Alongside falling confidence, the data shows rising anxiety: 81% of Americans indicate they are anxious about their finances, with family related expenses (69%, +5 pts), keeping up with monthly bills (62%, +3 pts), and fear of unknown expenses (84%, +3 pts) placing the greatest pressure.

While the aggregate data depicts the struggle many Americans are facing, the challenges posed to Gen Z and Millennials are particularly prevalent:

• 93% of Gen Z are anxious about their overall finances
• 80% of Gen Z are anxious due to family related expenses
• 82% of Gen Z are anxious due to keeping up with monthly bills
• 88% of Gen Z are anxious due to fear of unknown expenses

Despite these feelings of anxiety and a decline in confidence, perceptions of being able to make financial progress are relatively stable, although young Americans show somewhat sharper declines than the national average.

• 46% of Americans agree they are making real financial progress, -2 pts from last quarter
• 48% of 25–34-year-olds agree they are making real financial progress, -5 pts from last quarter
• 50% of 35–44-year-olds agree they are making real financial progress, -4 pts from last quarter

In line with being a main cause of anxiety, three in ten (31%) Americans cite keeping up with monthly bills as a key barrier to making financial progress. Mirroring the other trends in the data, the stress of monthly bills is higher among Gen Z (40%) and millennials (39%).

About the Study

These are the findings from an Ipsos poll conducted from January 7 to 28, 2022on behalf of BMO Harris Bank. For the survey, a sample of 3,400 adults ages 18 and over from the continental U.S., Alaska and Hawaii was interviewed online in English (including n=300 oversamples in Chicago, Indianapolis and Milwaukee),. The sample for this study was randomly drawn from Ipsos’ online panel (see link for more info on “Access Panels and Recruitment”), partner online panel sources, and “river” sampling (see link for more info on the Ipsos “Ampario Overview” sample method) and does not rely on a population frame in the traditional sense. Ipsos uses fixed sample targets, unique to each study, in drawing a sample. After a sample has been obtained from the Ipsos panel, Ipsos calibrates respondent characteristics to be representative of the U.S. Population using standard procedures such as raking-ratio adjustments. The source of these population targets is U.S. Census 2018 American Community Survey data. The sample drawn for this study reflects fixed sample targets on demographics. Posthoc weights were made to the population characteristics on gender, age, race/ethnicity, and region. Statistical margins of error are not applicable to online non-probability polls. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. Where figures do not sum to 100, this is due to the effects of rounding. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 2.5 percentage points for all respondents.

For more information on this news release, please contact:

Haley Jones
Account Manager, Ipsos Public Affairs
[email protected]

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