Finance
61% of young adults are financially stressed, report finds. Here's one safety net that can help
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Many young adults have financial stress, and experts say there’s a simple safety net that could help.
About 61% of surveyed Americans of ages 18 to 35 are financially stressed, according to a new Intuit survey. About 21% of respondents say their stress has gotten worse over the past year.
Some of the biggest stressors included high cost of living, job instability and growing housing costs. Of those who identified as financially stressed, 32% said handling unexpected emergencies like medical bills, car repairs and home maintenance trigger their anxiety with cash, the report found.
The site polled 2,000 adults of ages 18 to 35 in December.
Young adults lack a plan for money emergencies
Some of the stress can come from not having a plan — about 32% of all survey respondents admit they lack a clear strategy for managing money setbacks, Intuit found.
Almost half, or 45%, of the group say handling unexpected expenses was a challenge, and 29% have difficulty saving money.
A new report by Bankrate reflects a similar picture. The report found that older generations are more likely to say they could pay for an unexpected $1,000 emergency expense from their savings.
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About 59% of baby boomers, or those of ages 61 to 79, can pay for a $1,000 surprise expense from savings. The cohort is followed by 42% of Gen Xers, or of ages 45 to 60.
Yet, only 32% of millennials — ages 29 to 44 — and 28% of Gen Z adults — ages 18 to 28 — have the cash readily available, according to the survey, which polled 1,039 respondents ages 18 and older in early December.
“The youngest generations are those who are earliest in their financial journey,” said Mark Hamrick, a senior economic analyst at Bankrate.
‘Setting ourselves up for failure’ without savings
Financial emergencies can catch us by surprise, from needing a locksmith because you lost your keys to unexpectedly losing your job. The best thing you can do to prepare is have savings set aside and carefully using lines of credit, experts say.
“For emergencies, it’s really having that cash reserve in place. That is the financial plan,” said certified financial planner Clifford Cornell, an associate financial advisor at Bone Fide Wealth in New York City.
Having an emergency savings fund is like having a bulletproof vest, Hamrick explained.
“They won’t save you in all outcomes, but it’s a good start,” he said.
Many Gen Zers need to gear up. About 80% of the cohort are more likely than other generations to worry about not having enough money to cover living expenses if they lost their primary job, per Bankrate data.
That’s compared to 72% of millennials, 72% of Gen Xers and 58% of baby boomers.
“We’re really setting ourselves up for failure if we don’t have sufficient emergency savings,” Hamrick said.
How to start an emergency fund
Whether you can put away $10, $50 or $150 a month, the important part is to start building the habit of saving as soon as you can, Cornell said.
If you’re in the position where you haven’t put any thought to saving for unexpected costs, here’s where to start, according to experts:
1. Open a high-yield savings account
You want your emergency savings to sit in a highly-liquid account, or somewhere you can withdraw savings quickly and without penalties, experts say. To give your funds an extra boost, experts recommend a high-yield savings account.
While interest rates have come down from peak highs, the best high-yield savings accounts offer on average 4.31% annual percentage yields, or APYs, per Bankrate data.
To compare, traditional savings accounts offer a 0.51% APY on average nationwide, per DepositAccounts.
We’re really setting ourselves up for failure if we don’t have sufficient emergency savings.
Mark Hamrick
senior economic analyst at Bankrate
For every $1,000 you add into a HYSA, you can earn about $40 a year in interest at those rates. While $40 doesn’t sound like a lot at first blush, it’s significantly higher than what you’d earn in a traditional savings account, Cornell said.
There are many HYSAs available. As you consider your options, you want to double-check the one you pick is FDIC-insured, which protects your deposits at insured banks and savings associations if the company fails.
2. Calculate how much you can save every month
Figuring out how much cash you can save will depend on how much money you earn versus spend in a given month, Cornell said.
Some rules of thumb can be good starting points. For instance, the 50-30-20 rule is a budget framework that allocates 50% of your income toward essentials like housing, food and utilities, 30% toward “wants” or discretionary spending and the remaining 20% to savings and investments.
Yet, it’s not easy to follow, especially for a young person starting out their career — saving 20% of their income can be a tall order, Cornell said.
It’s fine to start off with less, and look for opportunities in your budget to save more. For example, saving part of an annual raise or tax refund.
3. Set a goal
First aim for three months’ worth of expenses as a goal, Cornell said. Once you meet that goal, consider the next: advisors often recommend you ultimately have three to six months, but some people may benefit from even more. In some cases, it’s a year or more.
Imagine having enough cash that can sustain you during a long stretch of unemployment: “It’s kind of like a pillow or a safety blanket,” he said.
The more variable your income — say, if you depend on commissions or bonuses, or your income fluctuates every month — the more savings you’ll need to hold you over in case something comes up, Cornell said.
Keep in mind that coming up with enough savings to tide you over for three months can take a long time. While saving so much can be daunting, experts say even having a small buffer of a few hundred dollars can help.
For instance, the Federal Reserve measures how many adults are able to cover a $400 emergency cost, a much lower benchmark.
Even a small level of savings may be enough to cover minor emergencies, or help offset how much you need to borrow.
Finance
PRESS RELEASE: Global Finance Names The 2026 FX Tech Awards As Part Of The Gordon Platt Foreign Exchange Awards
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Global Finance magazine has named its annual FX Tech Awards as part of the Gordon Platt Foreign Exchange Awards 2026. This awards program honors companies that conceive fresh ideas and demonstrate exceptional skill in designing or deploying technology to improve foreign exchange.
These awards are named in honor of Gordon Platt, who was the driving force behind this program for many years.
An exclusive report on this program will be published in the January 2026 print and digital editions, as well as online at GFMag.com. It will also include Global Finance’s 26th annual World’s Best Foreign Exchange Banks Awards.
Winning organizations will be honored at Global Finance’s Gordon Platt Foreign Exchange and Best SME Bank Awards Ceremony in London – Date and Location TBD.
Global Finance’s regional experts considered bank and technology provider submissions and used their own research and knowledge to make shortlists in all regions and categories, before applying a custom algorithm, which includes market share, scope of global coverage, innovative features, competitive pricing, and customer service to help choose the 2026 FX Tech Award winners.
“Global Finance’s 2026 FX Tech Award winners are redefining what’s possible in foreign exchange technology,” said Joseph Giarraputo, founder and editorial director of Global Finance. “By delivering smarter, faster, and more secure solutions, these innovators are shaping the future of finance. Global Finance is proud to honor their outstanding contributions.”
The complete list of Global Finance’s 2026 FX Tech Awards follows.
For editorial information please contact: Andrea Fiano, editor, email: afiano@gfmag.com
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Please fill in the form below to receive full coverage of the World’s Best Foreign Exchange Bank Awards 2026 when available.
About Global Finance
Global Finance, founded in 1987, has a circulation of 50,000 readers in 185 countries, territories and districts. Global Finance’s audience includes senior corporate and financial officers responsible for making investment and strategic decisions at multinational companies and financial institutions. Its website — GFMag.com — offers analysis and articles that are the legacy of 38 years of experience in international financial markets. Global Finance is headquartered in New York, with offices around the world. Global Finance regularly selects the top performers among banks and other providers of financial services. These awards have become a trusted standard of excellence for the global financial community.
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To obtain rights to use the Global Finance FX Tech Awards 2026 logo or any other Global Finance logos, please contact Chris Giarraputo at: chris@gfmag.com. The unauthorized use of Global Finance logos is strictly prohibited.
PA MediaScotland’s finance secretary has asked for a meeting and assurances from the chancellor over speculation she will raise income tax in her Budget.
Such a move, which Rachel Reeves refused to rule out last week, would lead to an automatic deduction from Scotland’s funding from the Treasury.
Shona Robison said Labour should ditch “outdated” fiscal rules which include making sure day-to-day spending is funded by tax revenues.
The Treasury said it would not comment on speculation but claimed its previous “record settlement” for Scotland meant it receives 20% more funding per head of population than the rest of the UK.
In an unusual pre-Budget speech in Downing Street last week, Reeves said she would make “necessary choices” in her tax and spending plans later this month after the world had “thrown more challenges our way”.
She did not rule out a U-turn on Labour’s general election manifesto pledge not to raise income tax, VAT or National Insurance, leading to speculation that a tax rise is on the way.
Any increase in income tax by the UK government could see a fall in the block grant Scotland receives from Westminster as a result of a funding agreement called the Block Grant Adjustment.
The Fraser of Allander Institute has estimated a 2p rise in the basic rate of tax elsewhere in the UK could cut Scotland’s budget by up £1bn, unless the Scottish government matches the increase with its own tax rise.
Robison said the chancellor’s speech had “piled uncertainty on uncertainty” and that she had requested an “urgent meeting” where she would set out three tests.
These are:
- The chancellor “ditch her outdated, restricted fiscal rules” and faces up to a “new reality”.
- All money raised from tax increases is invested in public services, meaning the block grant also increases as a result
- Confirmation that Scotland will not see a cut in funding
She said: “They came to office promising an end to austerity, so to impose it on Scotland would be a political betrayal from which Labour would never recover.”
Getty ImagesIncome tax in Scotland
Ahead of the last general election First Minister John Swinney urged the next UK government to replicate Scotland’s devolved taxation system where higher earners pay more in tax.
People living in Scotland earning below about £30,300 pay slightly less income tax than they would elsewhere in the UK, with a maximum saving of about £28.
Above that threshold they pay increasingly more as earnings increase. Someone on £50,000 in Scotland pays £1,528 more than they would in the rest of the UK. That rises to £5,207 for someone on £125,000.
Swinney recently said he had no plans to make any further changes to taxation in Scotland ahead of next May’s Holyrood election.
However, following the chancellor’s speech last week he has now declined to rule this out.
What is the Treasury saying?
The Treasury said it could not comment on the chancellor’s plans ahead of her Budget, but it said she had outlined the global and long term economic challenges that would influence her decisions.
A spokesperson said: “Our record funding settlement for Scotland will mean over 20% more funding per head than the rest of the UK.
“We have also confirmed £8.3bn in funding for GB Energy-Nuclear and GB Energy in Aberdeen, up to £750m for a new supercomputer at Edinburgh University, and are investing £452m over four years for City and Growth Deals across Scotland.
“This investment is all possible because our fiscal rules are non-negotiable, they are the basis of the stability which underpins growth.”
Why would a UK tax hike cut Scotland’s budget?
A change to UK income tax would apply directly to residents in England, Wales and Northern Ireland – but it could also have an impact on Scottish taxpayers.
When the devolved government in Scotland was given more tax raising powers nearly a decade ago, an agreement called the Fiscal Framework was agreed setting out how the new system would work.
Part of that was something called the Block Grant Adjustment (BGA) which meant the funding Holyrood receives from Westminster was reduced to take into the account money the Scottish government was now able to raise directly.
The BGA was intended to stop either government being better or worse off due to devolution.
It means the UK government is able to deduct funds from the block grant that it estimates it would have received if tax-raising powers were not devolved.
If the chancellor raises income tax, the BGA will also change.
Scotland will then have to generate more tax revenue or cut public spending in order to avoid a budget shortfall.
The Scottish Budget will be announced on 13 January.
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