Gen Z is exhausted, and money is at the center of that strain. Federal Reserve Chair Jerome Powell has acknowledged the financial struggles facing young workers, and surveys show that nearly 70% of Gen Z respondents say financial stress interferes with their sleep.
Rather than resting, many lie awake with their phones, endlessly scrolling, or retreat into “bed rotting,” a trend where hours are spent staying under the covers to avoid reality.
Sleepless Nights Driven by Financial Anxiety
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According to an Amerisleep survey, 49% of Americans lose sleep because of financial concerns, but Gen Z is particularly affected. About 47% of Gen Z respondents say their sleep has worsened since 2025, and many report waking in the middle of the night with money-related anxiety. Roughly one in ten Americans averages fewer than five hours of sleep, and that proportion rises for people who check their bank accounts before bed.
The financial strain is real: roughly 63% of Gen Z say they run out of money by the end of the month, and nearly half still depend on family for essentials like rent and groceries. Student loan debt continues to weigh heavily on younger workers, adding to the pressure.
The Spread of Bed Rotting and Doomscrolling
Rather than adopting proactive financial habits, many young people turn to avoidance. Surveys find that 37% of Gen Z admit to bed rotting, while over half use social media or binge-watch shows to calm themselves. Although these activities may provide temporary relief, experts warn they create a vicious cycle: stress leads to poor sleep, and poor sleep increases stress. Blue light from screens disrupts sleep patterns, and constant exposure to troubling economic news deepens anxiety.
These behaviors function as coping mechanisms. The problem is that when the scrolling stops, the same financial worries return, and exhaustion intensifies.
Small, Practical Steps That Can Help
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Health and financial experts recommend replacing avoidance with structured routines. One effective technique is a “worry window”: set aside 15–20 minutes earlier in the day to write down concerns and possible solutions. When anxious thoughts return at night, you can remind yourself they were already addressed. Sleep specialists also advise a phone curfew—leaving devices outside the bedroom—and winding down with calming activities such as journaling, gentle stretching, or reading.
On the money side, small, steady actions build confidence. Automating savings, focusing on one small debt at a time, or tracking expenses for a month can restore a sense of control. Bank of America’s Better Money Habits study found that 72% of Gen Z are actively trying to improve their financial health by diversifying income streams or automating savings. Still, only 25% contributed to retirement accounts last year, and 55% lack an emergency fund sufficient to cover three months of expenses. Those gaps help explain why financial stress remains high despite good intentions.
Beyond Individual Choices: Structural Drivers
Gen Z’s money anxiety isn’t solely a matter of personal decisions. Broader structural issues—wage stagnation, rising housing costs, and persistent student loan burdens—are major contributors to financial stress. Social media intensifies these pressures by promoting consumerism and encouraging comparisons to curated lifestyles that often don’t reflect reality.
Despite these challenges, many young people are demonstrating resilience. Increasingly, Gen Z links financial wellness with overall well-being, adopting a mindset that could lead to healthier habits balancing money management and mental health. The key challenge is turning awareness into consistent action and reclaiming the sleep needed to cope with an economy that often feels unrelenting.