Risk Tolerance & Resilience: The importance of being comfortable with discomfort
May 22, 2026
Every generation passes judgement on the one that comes after. These assessments are commonly accompanied by sayings like, “back in my day…” or “kids these days…” and then include an example of how the elder generation was tougher and more resilient. We all know that a generation is shaped by the challenges it faces together. Sometimes, this perception of “softness” of the next generation is just a difference in perspective about the world. But is this still the case? Is it possible that the current environment is creating less risk-tolerant and emotionally resilient young people? If so, what does this mean for their personal, professional and financial futures, and how can we help?
There is both anecdotal and research-based evidence that suggests children in Gen Z, the oldest of which will turn 29 this year, have a very different emotional makeup and view of the world than prior generations. This generation is known for being emotionally fragile, unable to take constructive criticism, afraid of failing, and often unable to act independently without outside instruction. These traits have many knock-on effects, both in one’s personal and professional life. Many academic researchers have made it their calling to find out why this is and how we can combat this trend.
Noted NYU researcher and professor Dr. Jonathan Haidt has conducted years of studies and has written many books including The Coddling of the American Mind and The Anxious Generation, where he cites a combination of parenting practices such as bulldozing, a lack of unsupervised play, school systems’ emphasis on emotional safety and constant exposure to social media as key ingredients in the breakdown of Gen Z’s risk tolerance and emotional resilience. An atmosphere of endless instruction and oversight, where all conflicts are resolved on a young person’s behalf, and they are trained to seek companionship and gratification through feedback on a screen as evidence of their value to the world, has robbed Gen Z of the friction and discomfort that naturally comes with navigating real-world relationships and scenarios.
Unsupervised play teaches children how to organize, self-govern and problem solve while maintaining a positive relationship with another person or a group. Facing personal or academic challenges in school which lead to distressing feelings teaches kids how to manage and navigate these stressors, that they aren’t the end of the world, and that difficulties can be overcome. Spending time interacting with people in person, instead of on a screen, teaches kids that people are not perfectly curated collections of experiences, but are flawed and have bad days, just like they do. Witnessing the shortcomings of others teaches that failure is ok and gives opportunities for them to be supported by people in their life through their struggles and failures. This creates the freedom to be authentic and the freedom to fail.
Lots of things in life require the risk tolerance and emotional resilience that stems from being comfortable and confident in the face of discomfort. Personal relationships, especially close intimate ones, require difficult conversations and problem solving. Workplace interactions also present challenges and opportunities to receive constructive feedback. Being a successful investor also requires a person to sit in discomfort at times when the economic or market outlook is uncertain. Staying invested requires tolerance for risk. Sticking to a financial plan or a budget requires resilience.
Who would’ve thought that developing the skills necessary for a life of personal, professional and financial prosperity would start as early as the sandbox? Learning to interact with people in real life, and all the messy experiences that come from that, are a proving ground for developing the emotional fortitude for success. Who would’ve thought so much future comfort could be gained from being so uncomfortable today?
