Even Under Financial Strain, Most Young People Still Find Reasons to Hope

Hopelab study finds young people under financial pressure are two times more likely to report poor mental health, yet 9 in 10 identify clear sources of hope

SAN FRANCISCO, March 31, 2026 /PRNewswire/ -- As families across the country navigate the impact of tariffs, inflation, and the rising cost of living, research from Hopelab, in partnership with Data for Progress, highlights how financial strain is shaping young people's lives and where they are still finding strength. Young people under financial stress are two times more likely to report poor mental health than their more financially comfortable peers, yet nine in 10 are able to name at least one meaningful source of hope in their lives, including having people who love and believe in them, as well as their own creativity, problem-solving skills, and belief in their own inner strength.

"Even in the midst of financial strain, young people are not giving up on themselves or on each other," added Amy Green, Head of Research at Hopelab. "This research is both a warning and an invitation: if we meet their courage and honesty with real support and policy change, we can help ensure that hope has room to grow."

The findings come at a time when 57% of U.S. adults rate their finances as "fair" or "poor," underscoring the broader context of financial anxiety many families carry. Within those households, young people are not only seeing the stress — they are feeling it.

Key Findings
The research, drawn from a national sample of 1,304 young people ages 13 to 24, surfaces key patterns in how financial strain and mental health intersect:

• Mental health gap: Young people under financial strain are nearly two times more likely to rate their mental health as fair or poor compared with peers who feel financially comfortable (62% vs. 34%).
• Basic needs and well-being: Nearly two-thirds (63%) say difficulty affording basic necessities directly harms their mental health, describing worry, pressure, and constant stress.
• Future outlook: Only 45% feel optimistic about their own future, and just 18% feel hopeful about the country's future, reflecting the weight of economic uncertainty on their outlook.
• Access to education: Confidence in paying for college is sharply divided; 29% of financially strained young people feel confident they can afford college, compared with 62% of their more comfortable peers.

In qualitative responses, young people described hope not as blind optimism, but as feeling supported, seen, and capable of change, even in difficult circumstances. Relationships with family, friends, mentors, and community organizations emerged as central to that sense of hope.

A white young adult woman experiencing financial strain shared what helps her mental health, saying, "Knowing that there's a light at the end of the tunnel. I will become a doctor someday. If I didn't have my career to look forward to, I would be depressed."

A Timely Moment for Action
The report serves as a reminder that financial stress is a youth mental health issue with long-term implications. The findings also point to practical areas where progress is possible now:

• Expanding access to support programs that help families meet their basic needs – including meals for enrolled students, free or low-cost health care, child care, and summer camp programs offered through community centers and schools, and stable housing.
• Investing in trusted relationships and community spaces — from schools and youth programs such as the YMCA and Boys and Girls Club — where young people feel safe, affirmed, and connected.
• Listening directly to young people about what helps them feel hopeful, providing guidance, and co-designing solutions that respond to their lived experiences.

Read the full report online at: https://hopelab.org/stories/financial-strain/

About Hopelab
Hopelab envisions a future where young people have equitable opportunities to live joyful and purposeful lives. As a researcher, investor, and convener, Hopelab is dedicated to fostering greater mental health and well-being outcomes for Brown, Black, and Queer young people. Learn more at hopelab.org.

SOURCE Hopelab