Financial stress impacts mental health and debt levels across generations

Financial pressure is emerging as a significant driver of mental health issues and rising debt across different global populations. In South Africa, a survey by Mediclinic found that between 59 percent and 66 percent of respondents across various generations identified financial stress as a primary cause of mental health problems. This strain is attributed to rising living costs, debt repayments, and family responsibilities, exacerbated by higher transport and electricity costs.

In the United States, household debt reached $18.8 trillion in the second quarter of 2026, according to the Federal Reserve Bank of New York. Data indicates that debt burdens vary by age group: 45 percent of Gen Z reported an increase in debt over the last 12 months, compared to 39 percent of millennials, 34 percent of Gen X, and 30 percent of baby boomers. Younger generations, specifically Gen Z and millennials, report higher levels of stress regarding debt due to structural barriers such as low wages relative to housing costs.