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Why Gen Z is more optimistic about money in 2022 than older generations

Younger generations are feeling better about their financial health, in part because they’re making more money at work, according to a new Bankrate survey.

Why Gen Z is more optimistic about money in 2022 than older generations
[Source Images: onuroner/Creatas/Getty]

Not worried about your money situation in 2022?

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Chances are, you’re part of Gen Z.

According to Bankrate’s December Financial Security Index, that cohort is the most optimistic about personal finances next year, with 51% saying they believe their financial situation will improve.

Financial optimism then drops with each successive demographic: 42% of millennials, 32% of Gen Xers, 23% of younger baby boomers, 18% of older baby boomers, and 14% of the Silent Generation.

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Fueling the hopefulness of Gen Z and millennials is their making more money at work, the survey determined, while having less debt is what puts a swing in the step of boomers.

Those who weren’t optimistic about what 2022 will bring pointed the finger at inflation, which was cited by 79% of boomers, 73% of Gen Xers, and 53% of millennials.

Overall, two-thirds of Americans consumers are pessimistic about their personal finances in the coming year, according to Bankrate. More than 50% point to inflation as the culprit.

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“Inflation worries have dragged consumer confidence to a decade low and is the top reason Americans don’t expect their finances to improve, and particularly to get worse,” Bankrate’s chief financial analyst, Greg McBride, said in a written statement. “This feeling goes far beyond gas prices, as inflation has broadened out and consumers see higher prices at every turn.”

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