Success in our modern world is often determined by self-esteem: the high bank balance, the prestigious job title, or the picturesque life posted all over social media. Gen Zers are constantly exposed to a barrage of perceived success and to ongoing economic hurdles, which significantly affect their mental well-being. This fear of becoming poor is somewhat universal. While it currently lacks clinical recognition in medical or psychological literature, “peniaphobia” has rapidly become the definition for the anxiety it brings. The term “peniaphobia” describes an intense, consuming fear of poverty and represents something very real: the crushing financial anxiety that has become embedded in Gen Z’s psyches.

The word derives from Greek roots meaning“poverty” and“fear” and reflects documented financial stress that researchers have linked to severe mental health consequences. For Gen Z, this anxiety has morphed beyond ordinary financial concerns. It has become an all-consuming dread that shapes daily decisions, damages well-being, and fundamentally alters how this generation approaches adulthood.
Economic Reality Fuels the FearThe economic fragility of the current age became vividly apparent during the COVID-19 pandemic. Many workers lost their jobs, and many never returned to them after the pandemic was over. Gen Zers were entering the workforce during this period. They entered into a contentious job market with increasing food prices, and rent has exponentially risen since the end of the pandemic.According to the Federal Reserve Economic Data, Gen Z unemployment stood at 10.5% as of August 2025, compared with 4.3% overall.