There is a generational divide in terms of how people react to the recession, a Friends Provident survey has found.
It terms it a psychological recession, saying that 18 to 25-year-olds are least worried and depressed about the current economic climate.
"Younger people are adapting their behaviours in the light of recession more significantly than the older generation," said Dr Peter Marsh, author of the report at the Social Issues Research Centre.
He believes younger people are more averse to debt and have increased their level of savings, which will prepare them for weathering the credit crunch.
Some people who have yet to be hit by financial hardship are nevertheless fearful and cautious about the recession, the Generation Recession Report found, with some even being more financially secure than in the past.
Of those questioned, 68 per cent admitted their worry over the recession, especially in terms of how it would impact their job security.
A spokesperson for the Consumer Credit Counselling Service recently acknowledged how young people are able to adapt to the recession better than older and middle-aged people.