Introduction
At 26, Julio considers himself to be suffering from financial stress—a constant anxiety and pressure due to uncertain economic circumstances. Earning 12,000 pesos a month, he finds it insufficient to cover basic expenses such as rent, food, transportation, credit card bills, and unexpected events. He and Sofía, his partner, share financial responsibilities, but he still finds himself borrowing at times to make ends meet until the end of the month.
The Scope of Financial Stress Among Young Mexicans
Julio’s situation mirrors that of millions of young Mexicans facing financial stress amid limited job opportunities and low wages. According to the National Survey on Financial Health (ENSAFI), nearly 70% of Mexicans aged 18 to 29—approximately 16.1 million individuals—experience moderate to high levels of financial stress.
- 6.6 million young adults (28.6%) experience high financial stress.
- 9.5 million young adults (40.9%) experience moderate financial stress.
- 7.3 million young adults (30.5%) consider their financial-related anxiety to be minimal or nonexistent.
Gender-wise, 71.2% of women and 67.6% of men aged 18 to 29 experience high or moderate financial stress due to their economic situations.
What Concerns Young Mexicans?
The National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) highlights that young adults’ constant worry often revolves around job insecurity and a lack of financial education.
Young adults face the pressure of starting their adult lives with significant educational expenses, job instability, and sometimes poorly-paying jobs. Moreover, the absence of financial education exacerbates this situation, as many young people lack essential tools to manage their resources effectively.
Daniel Urías, founder of Cooltura Financiera, adds that easy access to credit cards at a young age also plays a role. These cards are quickly obtained but come with interest rates exceeding 100%, which, if mishandled due to a lack of financial knowledge, can lead to substantial economic repercussions.
Psychologist Carmen Contreras notes that young adults are leaving home at younger ages, leading to significant expenses without stable income. “This is why it’s now common for young adults to seek roommates, as they aspire to live well in central locations but struggle to afford it.”
Another contributing factor is the desire among some young adults to have everything they see on social media, regardless of whether they can afford it.
Beyond its immediate effects, financial stress impacts not only physical health—causing issues like insomnia, depression, and cardiovascular diseases—but also emotional well-being. It can negatively affect family dynamics, social relationships, job or school performance, and limit one’s ability to enjoy other life areas or activities, as warned by CONDUSEF.
Poverty: A Persistent Challenge
According to INEGI data, 6.8 million young Mexicans live in poverty (28.8% of the segment). Of these, 69.4% have at least one social deprivation, and 25.3% have three or more, including educational disadvantage, limited access to health services and social security, inadequate housing quality and space, insufficient basic home services, and poor nutrition.
These challenges occur as young adults face a complicated labor scenario marked by informality, low wages, and long working hours, primarily due to insufficient experience.
“Despite the gradual recovery of employment following the COVID-19 crisis, significant disparities persist that affect young people, particularly women and those in vulnerable situations,” stated the International Labour Organization (ILO) in its report “Young People in the Labor Market: Between Informality and Lack of Opportunities.”
The ILO report highlights that in Latin America and the Caribbean, including Mexico, youth unemployment is three times higher than that of adults. Furthermore, around 60% of young people work in the informal sector, limiting their access to social security and decent working conditions.
Many young adults struggle to secure jobs aligned with their qualifications. This issue is exacerbated by the emergence of new employment forms, such as digital platform work, which, while offering flexibility, are often characterized by precariousness.
