Why Gen Z and Millennials Are Optimistic About Their Financial Futures

Most people in the U.S. are struggling to make ends meet and are cornered into living paycheck to paycheck. We’ve got to navigate lingering inflation , cling to our jobs amid mass layoffs and figure out how to feel stable under a cloud of general economic uncertainty. It’s easy to feel less than hopeful about what the future holds.

But not everyone has fallen into the clutches of a pessimistic mindset — some are actually feeling pretty good.

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According to a survey from Stash , a fintech and financial services company, younger generations of hardworking Americans feel optimistic about their financial futures — “hardworking” defined as a combination of working hours, salary and self-identification. The survey found that 71% of these millennials believe their kids will be better off than they are; 67% of millennials and 68% of Gen Z respondents think the future is brighter than the past. Comparatively, only 46% of baby boomers and 51% of Gen X feel the same.

What has Gen Z and millennials feeling so rosy about what the financial future holds? Douglas Feldman , CIO and head of investment strategy at Stash, provided GOBankingRates with answers.

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The US Job Market Is Growing and Wages Are Increasing

Though there have been mass layoffs over the past year — with the tech sector bearing the biggest brunt —  the U.S. job market continues to grow. And wages are growing with it, “translating to a great job market for younger working Americans as they get into the higher-earning years of their careers,” Feldman said. “According to our survey, 81% of millennials believe they can easily find a new job if they need to.”

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People Are Having Kids Later in Life

Back when boomers were young, it wasn’t uncommon to have a couple kids by the time you were in your mid-twenties. Of course, that is still often the case, but increasingly, younger generations are putting starting a family on the back burner.

“More younger hardworking Americans put off having kids until later in their lives, which gives them the time and opportunity to build up a safety net in the form of emergency savings , retirement accounts and even custodial accounts before their children are born or when the kids are very young,” Feldman said.

They’re Using Digital Tools and Services To Help Them With Their Finances

Younger generations are used to using the internet to do just about everything. And this can help them financially.

“The explosion of digital tools and services to help millennials and Gen Z has also contributed to a rise in optimism and confidence around financial goals,” Feldman said. “Nearly 3/4 of hardworking Americans want support and guidance, and with more and more investing platforms and financial wellness benefits available to them, they can take advantage of these tools more easily.”

They Talk to Others About Their Money

Money isn’t nearly as taboo a topic as was in the heyday of boomers, and this is a great thing. By feeling more free to talk about finances, younger generations are able to better understand what they need to do to reach their goals.

“Millennials and Gen Z are 2X more likely to talk to friends and relatives if they find themselves in a challenging financial situation,” Feldman said. “A recent report by Commonwealth reveals that 67% of people who talk to others about investing at least monthly feel a sense of belonging and investing identity. Additionally, 45% of millennials are confident they will achieve all their financial goals, according to our survey.”

This article originally appeared on GOBankingRates.com : Why Gen Z and Millennials Are Optimistic About Their Financial Futures