A recent study conducted by Acorns has revealed that both Generation Z (Gen Z) and millennials are deeply concerned about financial insecurity and the risk of homelessness in the coming years. The study, which began in February and involved nearly 5,000 participants aged 18 and older, showed that 29% of Gen Z and 32% of millennials share this fear.

Interestingly, the study also found that Gen Z and millennials tend to obsess over money, with numbers ranging from 28% to 33%. This indicates that financial concerns are a prevailing issue among both generations. In comparison, their boomer counterparts expressed less worry about these matters.

The survey further highlighted the anxiety surrounding homelessness, with roughly one in four Americans expressing concerns about experiencing homelessness. The study also noted that only 35% of respondents believe they will be more financially secure next year compared to their current situation.

These findings shed light on the lasting impact of previous crises, such as the recent recession, the global pandemic, and the rise in inflation, which have significantly influenced the financial outlook of Gen Z and millennials. The latest consumer reports indicate that Americans' confidence in the economy has reached its lowest point since last fall, reflecting the broader issue of rising inflation costs.

In response to these concerns, a substantial number of millennials are opting to move away from cities like Los Angeles. According to a study by Hire A Helper, 40% of millennials have relocated to smaller cities, while around 16% continue to live with their parents.

The Acorns study also highlighted the top three financial concerns among Americans: the cost of living, inflation, and debt. With high living expenses and stagnant wages, many Americans, including those in Los Angeles, struggle to afford unexpected expenses of just $1,000.

As the Federal Reserve predicts a rise in inflation to 3.5%, surpassing the central bank's 2% target, the concerns of Gen Z and millennials regarding financial insecurity and homelessness become even more pronounced. These findings emphasize the urgent need for measures to address the economic challenges faced by these generations, ensuring a more secure financial future for all Americans.