Worries about security and the economy have impacted how teenagers feel about their futures, according to research by Mediacom.
Only 53 per cent of those aged 13-19 are confident about their futures now, compared to 61 per cent last year.
Concerns over security topped the list of causes for their anxiety, with 69 per cent worried about safety. This was closely followed by 65 per cent economy and the environment.
This follows a wider trend of declining consumer confidence in the UK as inflation outpaces wage growth.
While 73 per cent of those aged 8-19 in the UK said that happiness is more important than money, 67 per cent of 17-19 year olds were still worried about getting a well-paid job.
Girls were particularly affected. While two per cent fewer boys felt confident this year, the drop among girls was 14 per cent.
Changes in world outlook are also shifting teenagers' priorities.
A further 63 per cent were concerned about buying a house, ranking it as more important than remaining close to family or being in a long-term relationship.
Read more: UK house price growth edged down in July