Forty-three percent of U.S. residents confess that their financial situation is adversely affecting their psychological well-being, according to recent poll data.
In today's times, many folks, like 32-year-old Paige DeVriendt of Columbus, Ohio, find themselves wrestling with a complex tangle of money-related shame and anxiety. DeVriendt, along with her husband, bring home a combined annual income of roughly $225,000, enabling them to manage their bills, save, invest, and chip away at their whopping combined student loan debt. Yet, despite her financial comfort, DeVriendt has long grappled with money-centered guilt, a legacy from her childhood spent in a small northwest Ohio town absorbing her parents' financial stress.
DeVriendt recalls her college years, when she yearned to embrace a life free from financial worries and stress. Fast forward to her adult life, and her nagging anxiety about money didn't seem to fade away. She felt overwhelming shame about her hefty student loan balance and feared the prospect of a job loss or financial mishap that might leave her unable to meet her bills.
"I was living my life in the scarcity mindset when I didn't need to," DeVriendt confesses.
Decades of money stress coupled with a lingering sense of shame about her student loan balance eventually pushed DeVriendt to focus on her financial education and learn the art of budgeting. She is far from alone; countless Americans like her have been wrestling with the debilitating impact of money worries, keeping them awake at night. A recent survey conducted by our site indicates that more than 4 in 10 U.S. adults admit to experiencing mental health issues stemming from money-related stress, at least occasionally, resulting in feelings of anxiety, stress, and sleepless nights, among other negative effects.
This percentage represents a decline compared to 2024 and 2023, yet it remains the primary factor affecting mental health, ahead of politics, world news, and climate change, not to mention personal health and the state of the U.S. economy. The financial troubles of the average American have become increasingly entangled with current events, as highlighted by the volatile stock market fluctuations caused by President Donald Trump's tariff announcements and the continuous price increases for common goods. With widespread concern about rising inflation, high interest rates, the threat of a recession, and dwindling consumer confidence, anxieties about personal finance persist and deepen, concerns that have plagued American families for decades.
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Edwin B. Fisher, a professor at the Department of Health Behavior at the University of North Carolina-Chapel Hill Gillings School of Global Public Health, elucidates the significant role that economic factors play in mental health. As money impacts daily life in myriad ways – from caring for family members to pursuing leisure activities and seizing opportunities – not having access to sufficient savings or understanding how to manage money can be petrifying.
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To illustrate the ways in which money impacts mental health, our site and polling partner YouGov Plc polled over 2,000 American adults on their feelings about money and mental health. The findings underscore that, while the percentage of Americans who report feeling the adverse effects of money on their mental health has decreased year-over-year, money-related stress still lingers like a stubborn shadow.
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Banking on a Happier Tomorrow
It's no secret that money affects the mental health of millions of Americans, with 43% confirming that money negatively influences their mental health, at least occasionally[1]. While inflation/rising prices stands out as the most adverse effect, many confront challenges such as paying day-to-day expenses (such as food and utilities), not having adequate emergency savings, insufficient discretionary spending money, debt, housing costs, and retirement preparedness[1].
Spending less
Despite the decline in the percentage of people who claim that money causes negative effects from 2024 to 2025, money concerns continue to be pervasive[1].
Looking at your bank or credit card statements from the past month. Tally up one category where you'd like to spend less (for example, eating out or shopping) to understand how much you're spending. Does it feel too high or on target?
The Generation Gap
Create a budget and track your spending over time.
Across all ages, Gen Zers report the highest rate of feeling negatively impacted by money, followed by millennials, Gen Xers, and baby boomers, with baby boomers registering the lowest levels[1].
Political Divide
Saving more
In 2024, Republicans and Democrats reported similar levels of financial stress[1]. However, as of 2025, Democrats cite current events, rather than money, as the most pressing factor negatively affecting their mental health, with 52% pointing to current events, compared to the 46% who claim money is the primary culprit[1]. On the other hand, Republicans express increasing concerns about money, with 38% attributing their negative mental health to financial woes, down slightly from 41% in 2024 [1].
Setting up a recurring, automated transfer from your checking account to your savings every pay period or every month.
Education Levels Play a Role
Target what you can cut from your budget to give you more wiggle room for savings.
College-educated Americans are more likely to point to current events as the most important factor impacting their mental health, rather than money, compared to those without a college degree[1].
Inflation's Torment
Investing more
Inflation concerns remain a key stressor for many Americans, with 69% of those affected by financial stress citing it as a source of worry[1].
If your employer has a 401(k) match, making sure you're contributing enough to receive it. It's free money for your retirement fund.
The Insidious Cycle of Financial Stress
Meet the contribution limit for the year and/or open a Roth IRA.
When financial stress affects mental health, it can spawn a vicious cycle that undermines the ability to manage finances effectively. Those who struggle with money report being three times more likely to have fallen behind on a bill over the past month than those who report no negative impact of money on their mental health (22% versus 7%)[1].
Despite grappling with financial stress, many Americans are actively monitoring their finances. Those who report feeling negatively impacted by money are more likely to have reviewed their budget, checked their bank and credit card account balances, tracked their spending, and looked up their credit score[1]. Although only a minority are falling behind on payments, financial stress can still cast a long and dark shadow over their lives.
To navigate the choppy financial waters in these uncertain times, Foster suggests focusing on what you can control and taking proactive steps towards financial stability. This might involve keeping tabs on your cash flow, comparing prices for goods and services, making smart substitutions when possible, and setting up automatic transfers for savings[4]. By adopting these strategies, you can construct your very own emergency financial game plan, providing a sense of security and stability amidst the turbulent economic landscape.
If financial stress goes beyond mere stress and begins to affect day-to-day life, it may be time to seek assistance from a financial therapist or advisor. In some cases, contacting 211 or visiting your state's 211 site can provide you with a list of local resources to help navigate the complex world of personal finance difficulties.
[1] Source: our website's Money and Mental Health Survey, March 19-21, 2025. Respondents could select multiple answers.[2] Source: American Psychological Association (APA)[3] Source: MarketWatch[4] Source: Sarah Foster, U.S. Economy Reporter for our website[5] Source: Bankrate.com's Financial Security Index
- DeVriendt's struggle with money-centered guilt and financial anxiety, despite her high income and having a manageable financial situation, is a testament to how personal finance issues can significantly impact one's mental health, regardless of social status.
- In order to confront her financial concerns head-on, DeVriendt focused on her financial education and budgeting, a course of action that many Americans, like her, have embraced to combat the debilitating influence of money worries on their mental health.
- The financial troubles of the average American continue to be deeply rooted in current events, with personal finance persistently ranking as the primary factor affecting mental health, even surpassing concerns about politics, world news, climate change, and personal health.
- Edwin B. Fisher, a health behavior professor, elucidates the profound impact of economic factors on mental health, given that money impacts daily life in numerous ways, from family care to leisure activities, and understanding it can alleviate the terrifying uncertainties associated with insufficient savings or money management skills.
- Our site's Money and Mental Health Survey indicates that college-educated Americans are more likely to view current events as the most significant factor impacting their mental health, rather than money, compared to those without a college degree, highlighting the generation gap surrounding financial stress and its repercussions on mental health.
