We’ve all been told that hard work and focus are the keys to success, whether in exams or in your first job. But what if one of the biggest blockers to your performance isn’t a lack of effort, but a quiet, constant pressure that lives in your bank account?
A new report, “Money & Mindset”, from Lifetime Financial Management, reveals a critical insight: a significant portion of young people, particularly Gen Z and Millennials, are seeing their performance suffer because of financial worries. This isn’t just about feeling stressed; it’s about money problems actively slowing down your progress and limiting your potential.
The Problem: When Anxiety Becomes a Distraction
The data confirms that money is no longer just a numbers game, it’s an emotional and psychological one. The report notes that young people feel anxious and overwhelmed by their finances.
When you’re constantly worried about making rent, covering an unexpected bill, or whether you should say no to a friend’s social plan, your brain is dedicating energy to stress instead of studies or work tasks.
The result is a tangible dip in performance. The report specifically highlights that financial distress leads to:
- Lost Focus: Constant worry acts like a cognitive tax, making it harder to concentrate on complex tasks or long study sessions.
- Lower Confidence: Feeling financially insecure erodes your overall self-confidence, often translating into hesitancy in taking on new challenges at work or school.
- Strained Relationships: Money is the leading cause of friction in many relationships (both romantic and familial), creating home-life strain that spills over into your performance.
The Roots of the Worry: Cost of Living and Confusion
Why is this generation so stressed? The report points directly to the Cost of Living Crisis as a major trigger. For many young people, rising costs are hitting hard:
- Food and Energy Bills: These are the two biggest impacts reported, squeezing budgets designed for student life or entry-level salaries.
- Savings Depleted: Many are dipping into or completely wiping out their emergency savings, leaving them vulnerable to the next unexpected financial shock.
But beyond the high costs, there’s a deeper issue: Confusion. The report indicates that a notable percentage of people feel “Confused” about their finances and “Ashamed” to ask for help.
When you don’t know the difference between an ISA and a savings account, or how to navigate your student loan repayment, the uncertainty breeds anxiety. This lack of financial literacy is a major hurdle that many young adults face alone.
What Can You Do Right Now?
If you feel like your bank balance is sabotaging your focus, you’re not powerless. Here are three practical steps you can take to regain control and minimise the mental strain:
1. Ditch the Social Media Echo Chamber
The report shows that many people are turning to platforms like TikTok and Instagram for “financial advice.” While fun, these platforms are often unregulated and filled with surface-level information. Instead, seek advice from qualified, free sources. Resources like StepChange or National Debtline (listed in the “UK Services to Combat Loan Sharks” piece we published recently) offer free, confidential guidance on budgeting and debt.
2. Start the Budgeting Habit
The best way to feel “in control” (an emotion 35.5% of respondents did feel) is to know exactly where your money goes. You don’t need a complicated app; start with a simple spreadsheet for 30 days. Track every penny. Knowing where your cash goes removes uncertainty and replaces anxiety with action.
3. Separate Money Talk from Shame
The shame surrounding financial struggle is a massive barrier. Talk to a trusted mentor, family member, or friend. The report highlights that people want support, but stigma stops them from asking. Removing the secrecy around your financial state is the first and most powerful step toward fixing it. Remember, feeling anxious or overwhelmed by money is extremely common, you’re definitely not alone.
The Systemic Solution: What Support Is Available?
While individual action is crucial, the scale of this problem requires support from the institutions you interact with most: your employer and the education system.
The “Money & Mindset” report strongly suggests that young employees are looking to their workplaces for help, with many agreeing they would benefit from a workplace ‘financial education and wellbeing’ benefit. For employers, this isn’t just a perk; it’s a key strategy for resilience and retention, as financial stress directly impacts productivity.
Similarly, at a national level, institutions are finally catching up. The Department for Education has recently confirmed a major curriculum overhaul to embed core financial literacy and life skills from primary school through post-16 education, aiming to ensure students leave school “ready for life and ready for work” and tackling the very confusion that fuels anxiety. This shift acknowledges that financial capability is a core life skill that shouldn’t be left to chance.
The constant drip-feed of money anxiety doesn’t have to define your life. By merging personal action, like honest conversations and disciplined budgeting, with systemic improvements in education and workplace support, this generation can shift the narrative from financial stress to financial strength. Your focus and energy are too valuable to be spent worrying about bills. Take the first step today: seek knowledge, break the silence, and reclaim control over your performance and your peace of mind.
