You may be surprised by who’s feeling the happiest in the United States: While older adults are generally feeling pretty good, young adults seem to feel very differently — and financial security plays a role.
In this year’s World Happiness Report, the U.S. fell from No. 15 to No. 23 on the list. This is the first time the U.S. has not been one of the top 20 happiest places in the report’s history. And the generational split was noticeable. Americans over 60 ranked No. 10 for happiness, while those younger than 30 ranked at No. 62.
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In addition to declines in overall outlook and mental health for younger adults, there are other factors likely driving down the ranking. Here’s a look at some key economic factors attributing to the decline.
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Fears of a Recession
Many Americans have been fearful of major economic declines and a recession for more than a year. According to a Harris poll conducted for The Guardian in May, more than half of those surveyed thought the economy was shrinking and that the U.S. was experiencing a recession.
“Researchers argue that technology and social media have led to an epidemic of isolation and loneliness,” CNBC reported. “However, a growing body of research reveals more nuanced reasons for the decline, including economic and systemic failures, institutional distrust and young people’s increasing dread that they will be worse off than their parents and grandparents.”
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Impacts of Inflation
Those fears of a recession come amid inflation and rising prices in the U.S. While inflation has moderated in the past year, consumers continue to pay more for everyday goods and services.
Those increased costs are among the reasons more American adults are feeling increasingly anxious. In the American Psychiatric Association’s annual mental health poll for 2024, 77% of those surveyed noted that they’re particularly anxious about the economy. Further, 63% said they’re anxious about paying bills or expenses.
Trouble Paying Bills
It can be hard to feel happy when you and your family struggle to pay for food, rent and other necessary items. According to a CNN poll in July, 39% of adults in the U.S. reported worrying most or all of the time that their family’s income isn’t enough to meet their needs.
Families have been cutting back and trying to find resources to better meet their needs. Some have turned to side jobs to help put more money in their pockets.
Lack of Emergency Funds
An emergency fund can be a source of comfort, but many Americans don’t have the necessary funds to handle unexpected financial situations.
Nearly half of respondents to a Forbes Advisor survey noted they were very or somewhat stressed about handling a financial crisis. More than half (56%) reported having less than $2,000 in savings. Nearly 20% have no savings at all.
Younger Americans looking toward the future may be feeling more pessimistic amid inflation, trouble paying bills and fewer emergency funds. Based on the happiness report, many young adults are also feeling anxious as they see their parents and grandparents struggling financially in the past few years.
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This article originally appeared on GOBankingRates.com: US No Longer in the Top 20 Happiest Countries — 4 Key Economic Factors Behind the Decline