Kyle Connolly is exhausted.
Connolly, a 41-year-old in Gulf Breeze, Florida, separated from her husband in March 2023, leading to an expensive and emotionally taxing divorce. Then, the Friday before Thanksgiving, she was laid off from her full-time corporate job. She took on part-time retail work to make ends meet.
Even though she took on gig work dogsitting, March was her worst month yet financially. By then, her savings were gone and she had to turn to family for help for the first time to provide for herself and her three young children.
“My mental health has been a roller coaster. It’s just been a lot,” Connolly says.
It’s no secret that it’s more difficult to manage your mental health when you’re struggling to get by. Millions of Americans are suffering from money-related stress as they try to juggle everything from debt and student loans to saving and retirement.
Around half (47 percent) of U.S. adults say money has a negative impact on their mental health, at least occasionally, causing anxiety, stress, worrisome thoughts, loss of sleep, depression or other effects, according to Bankrate’s latest Money and Mental Health Survey.
If you’re struggling due to money, you’re not alone. This is how money is affecting Americans’ mental health and what you can do to prepare if you’re worried about your financial future.
Bankrate’s insights on money and mental health
- Money is impacting millions of Americans’ mental health. 47% of U.S. adults say money has a negative impact on their mental health, at least occasionally, including effects like anxiety, stress, worrisome thoughts, loss of sleep or depression, at least occasionally.
- Rising prices are the chief culprit. 65% of U.S. adults who say money negatively impacts their mental health cite inflation and/or rising prices as a reason.
- But paying for everyday items and building savings were also frequently cited. 59% of people who say money negatively impacts their mental health cite paying for everyday expenses, such as groceries or utilities. 56% cite not having enough emergency savings and 47% cite being in debt.
Money affects more Americans’ mental health than work, health or current events
Nearly half (47 percent) of U.S. adults say money has a negative impact on their mental health, at least occasionally, causing anxiety, stress, worrisome thoughts, loss of sleep, depression or other effects, according to Bankrate. That’s the highest percentage among all other suggested factors, some of which include:
- Money: 47 percent
- My own health: 39 percent
- Current events (e.g. world news, politics, climate change, etc.): 38 percent
- The health of my family/friends: 33 percent
- Relationships with friends/family: 30 percent
“If you’re lying awake at night worrying about something, there’s a good chance it has something to do with money,” Bankrate Senior Industry Analyst Ted Rossman says.
The percentage of people in 2024 who say money has a negative impact on their mental health, at least occasionally, is slightly lower than it was in 2023 (52 percent), when Bankrate asked the same question:
Americans’ same negative mental health impacts, at least occasionally, in 2023
- Money: 52 percent
- Health: 42 percent
- Current events (e.g. world news, politics, climate change, etc.): 41 percent
- The health of my family/friends: 36 percent
- Relationships with friends/family: 32 percent
At present, around half (51 percent) of women say money negatively affects their mental health, compared to 42 percent of men. Women were more likely to report a negative impact on their mental health, at least occasionally, than men from nearly every factor suggested by Bankrate, including:
- Money: 51 percent of women, 42 percent of men
- My own health: 44 percent of women, 34 percent of men
- Current events (e.g. world news, politics, climate change, etc.): 40 percent of women, 35 percent of men
- Health of their family/friends: 36 percent of women, 29 percent of men
- Relationships with family/friends: 33 percent of women, 27 percent of men
Not all generations share the same worries. Gen Xers, who are at the age where they may be juggling both trying to improve their credit and planning their upcoming retirement, are the most likely generation to say money negatively affects their mental health, at least occasionally:
- Gen Zers (ages 18-27): 47 percent
- Millennials (ages 28-43): 50 percent
- Gen Xers (ages 44-59): 54 percent
- Baby boomers (ages 60-78): 40 percent
On the other hand, only 40 percent of baby boomers say money has a negative impact on their mental health, at least occasionally. Unlike other generations, baby boomers are actually more likely to be worried about their own health (45 percent) or current events (44 percent) than money:
Note: Participants could select more than one answer.
Source: Bankrate survey, March 18-20, 2024
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When comparing U.S. adults with different levels of education, people with only some college education are most likely to say money negatively affects their mental health, at least occasionally:
- High school diploma or less: 45 percent
- Some college or a two-year degree: 52 percent
- Bachelor’s degree: 45 percent
- Post-graduate degree: 43 percent
Americans who report a household income of under $50,000 a year are far more likely to say money negatively impacts their mental health, at least occasionally, compared to people with a higher household income:
- Under $50,000 per year: 53 percent
- $50,000-$79,999 per year: 48 percent
- $80,000-$99,999 per year: 39 percent
- $100,000 per year or more: 40 percent
Nearly 2 in 3 people whose mental health is affected by money cite inflation and/or rising prices
The high cost of everyday living is negatively affecting a massive percentage of Americans. Nearly two-thirds (65 percent) of U.S. adults whose mental health is negatively impacted by money cite inflation/rising prices, and 59 percent cite paying for everyday expenses, such as groceries and utilities:
- Inflation/rising prices: 65 percent
- Paying for everyday expenses (e.g. groceries, utilities, etc.): 59 percent
- Not having enough emergency savings: 56 percent
- Being in debt (e.g. credit card debt, medical debt, student loan debt, etc.): 47 percent
- Not enough discretionary spending money: 43 percent
- Paying for housing (e.g. rent, mortgage, etc.): 40 percent
- Being unprepared for retirement/low return on my investments: 37 percent
- Not having a stable income/job security: 33 percent
- Rising interest rates: 28 percent
- Something else that is money-related: 21 percent
Inflation has remained a major concern among Americans for over a year, even as the inflation rate itself has fallen. In March 2024, consumer prices had risen 3.5 percent year-over-year, down from the 5 percent annual rate in March 2023, but still higher than the Federal Reserve’s 2 percent target, according to the U.S. Bureau of Labor Statistics. Meanwhile, the percentage of people whose mental health is negatively affected by money and cite inflation barely budged, from 68 percent in 2023 to 65 percent in 2024:
Americans who said money-related factors negatively impacted their mental health, at least occasionally, in 2023
- 68% cited inflation/rising prices.
- 60% cited paying for everyday expenses.
- 56% cited not having enough emergency savings.
- 47% cited being in debt.
This year, more men who say their mental health is negatively affected by money cited not having a stable income or job security, as well as rising interest rates, compared to women. Women whose mental health is negatively affected by money were more likely to cite nearly all other factors, including inflation/rising prices and paying for everyday expenses:
- Inflation/rising prices: 67 percent of women, 61 percent of men
- Paying for everyday expenses (e.g. groceries, utilities, etc.): 63 percent of women, 55 percent of men
- Not having enough emergency savings: 59 percent of women, 52 percent of men
- Being in debt (e.g. credit card debt, medical debt, student loan debt, etc.): 49 percent of women, 44 percent of men
- Not enough discretionary spending money: 44 percent of women, 41 percent of men
- Paying for housing (e.g. rent, mortgage, etc.): 42 percent of women, 37 percent of men
- Being unprepared for retirement/low return on my investments: 38 percent of women, 34 percent of men
- Not having a stable income/job security: 32 percent of women, 34 percent of men
- Rising interest rates: 26 percent of women, 32 percent of men
- Something else that is money-related: 21 percent of women, 22 percent of men
Unlike older generations, Gen Zers whose mental health is negatively affected by money are far less likely to cite the same factors as the culprits. Notably, around two-thirds of millennials, Gen Xers and baby boomers whose mental health is negatively affected by money cite inflation and rising prices, compared to only 50 percent of Gen Zers:
Notes: Participants could select more than one answer; Percentages are of U.S. adults who have money concerns that impact their mental health
Source: Bankrate survey, March 18-20, 2024
Lindsay Bryan-Podvin, a financial therapist who helps people untangle their anxiety around money, says right now, her clients are generally feeling anxious about a possible future emergency, like a potential recession or job loss. Though the economy is recovering in some areas, her clients have been worried about money for a while now, and Bryan-Podvin says the economy isn’t improving fast enough to ease many people’s minds about money.
“When we don’t have that forward (economic) momentum that we’re supposedly used to here in the States, it can feel really disorienting,” Bryan-Podvin says. “Overall, the general trajectory is growth. But when we don’t have that massive growth like we had over the last couple of years, that slowdown can feel like (people are) going backward. That can cause a lot of anxiety.”
Financial changes alone won’t heal poor mental health — but these tips might help
Connolly was laid off last November, but she had been worried about her employer’s financial stability for a long time before that. She saved more money to prepare for the future while she worked there, but when that layoff finally came, she quickly used up those emergency savings.
Now, living on only a fraction of the income she brought in before, she’s been making ends meet by canceling subscriptions, cutting out restaurants and doing free activities with her kids, like hiking and going to the nearby beach.
“I have to be very, very mindful of every single thing that I spend my money on. I have my debit card locked, so I’ll unlock it, and then use it, and then lock it, just in case I get hit with an unexpected charge,” Connolly says.
Stress or depression from money-related struggles may not go away from simply saving more or cutting expenses. But if you’re worried about your financial future, you can take small actions to help.
“When we worry about things, a lot of the time it’s because we feel out of control. Take some of that power back by putting a plan together,” Rossman says. “There are plenty of things you can do to get moving in the right direction.”
For example, if you’re worried about your savings, Rossman recommends automatically depositing a portion of your paycheck into a high-yield savings account every payday. Additionally, if you’re carrying a large amount of debt, debt consolidation can help you pay more of your principal while paying lower interest.
If you’re still concerned and need more local, personalized guidance, call 211 or visit your state’s 211 site for a list of mental health and personal finance resources in your area.
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All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2364 adults, of whom 1,109 have concerns over money which impact their mental health. Fieldwork was undertaken between 18th – 20th March 2024. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.
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