Millennials’ Money Confidence Falls 15 Points as Costs Bite

Consumers are not standing still as higher living costs squeeze household budgets.

They are cutting spending, delaying purchases, taking on extra work and using payment tools to stretch cash flow, yet fewer now believe those moves are working.

That is the central tension in PYMNTS Intelligence’s “Generations Under Pressure: How Younger Consumers Are Coping With Higher Living Costs,” the February Generational Pulse Report. Based on a January survey of 2,747 consumers in the United States, the report found that cost pressure remain widespread, with 51% of consumers saying daily living expenses are challenging. Young consumers face the broadest set of pressures, led by bridge millennials and millennials, while older consumers tend to rely on fewer financial levers.

The deeper story is not just that consumers are under strain. It is that confidence is slipping even among the people doing the most to manage it.

From October to January, the share of consumers who said their coping strategies were extremely or very effective fell to 25% from 34%. That nine-point decline suggested many households have moved past simple budgeting adjustments. They are still acting, but the actions are no longer giving them the same sense of control.

Several data points show how that confidence gap is taking shape:

Millennials saw the sharpest drop. The share of millennials who said their coping strategies were extremely or very effective fell to 32% in January from 47% in October. That 15-point decline came even as millennials remained among the groups most likely to combine multiple financial tactics.

Bridge millennials also lost ground. Their confidence in coping strategies dropped to 29% from 42% over the same period. This group averaged 3.5 cost pressures, the highest among the cohorts measured, compared with 2.6 for baby boomers and seniors.

Generation Z still reported the highest confidence, but it also slipped. The report found that 35% of Gen Z consumers said their strategies were extremely or very effective in January, down from 41% in October. At the same time, Gen Z reported rising healthcare-related strain, including an 11-point increase in stress tied to prescriptions, dental and vision care, and mental health services.

The positive angle for banks, FinTechs and payment providers is that consumers are not disengaged. They are actively looking for ways to manage bills, smooth spending and preserve cash. Half of consumers rely on two or three coping strategies, while 16% use four or more. Young consumers are especially active, with roughly 1 in 5 Gen Zers, millennials and bridge millennials using four or more strategies at once.

That creates an opening for financial services firms to offer practical help rather than another budgeting lecture. Real-time spending alerts, clearer recurring-bill visibility, flexible payment options and short-term liquidity tools can help consumers reduce the number of manual moves needed to stay current.

The report also showed why a one-size-fits-all approach will fall short. Older consumers are more likely to manage pressure through spending restraint. Younger consumers are more likely to add credit, payment plans, family support or extra income. Across generations, the need is more control over everyday cash flow. The path to getting there looks different by age, income and life stage.