There’s no doubt that most Americans struggle with their personal finances. When it comes to managing money, most of us wouldn’t earn a passing grade due to financial troubles
The proof of that is in the record high debt that continues to rise well after the Great Recession has come and gone. Such a financial disaster should’ve taught us a fine lesson about debt. It doesn’t seem to have had much impact on the spending habits of most Americans.
It’s this lack of financial literacy that is 1) going to send us into another recession and 2) making us physically sick.
A workplace wellness company, Financial Fitness, recently released a study that found having increases chances of getting heart disease and diabetes. This is because stressors cause weight gain and unhealthy behaviors that lead to illness.
Financial Troubles Can Be Sneaky
Another study revealed that most Americans may not even realize they’re in trouble or where their sickness is coming from. Raddon, a financial service company, found that 44% of people surveyed believed they understood their finances well, but less than half of them passed a financial literacy test.
Only 6% of them scored a 90% or better. This is truly enlightening to the typical American mindset when it comes to money. We want those better things for our lives and for our family, but being in that much debt is putting untold stress on our minds…and our bodies.
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Of course, our mind has a powerful influence over the rest of us. According to the American Psychology Association, the number one stressor in most people’s lives are money issues. It must be difficult not knowing from year-to-year how the economy will do or if you’ll remain employed. Everything is getting more expensive while wages remain flatlined.
Still, that worry doesn’t seem to have any impact on many of us actually taking the time to properly educated ourselves on these issues. That stress caused by financial troubles is taking a toll.
“If stress becomes chronic, it can lead to significant health consequences. It’s important to remember that there are steps that people can take to manage their stress in healthy and productive ways, like exercising, spending time with friends and family, and finding ways to get involved in your community, including making your concerns known to policymakers,” says APA CEO Arthur Evans Jr.
Avoiding the Doctor Like the Plague
To make matters worse, Americans avoid going to the doctor…because they can’t afford their medical bills and/or insurance. 36% of Americans say they simply don’t have enough money to live a healthy lifestyle that includes going to a gym, eating healthy foods, and regular doctor visits.
This proves that if you want a healthy mind and body, one of the best ways to do it is by educating yourself on financial matters to help release that every day stress. Calm your mind. Have an emergency stash saved, Save money. This will go a long way in improving your physical and mental well-being.
The problem is, 84% of Americans have never been involved in any type of financial program to improve their knowledge. 51% say learning about money and investment is on a ‘need to know’ basis. They’ll learn it when they’re ready to apply the knowledge and start investing.
Another issue is most Americans sort of feel invincible, despite the stress that’s eating away at their peace-of-mind. We did a story recently about how most millennials believe they will be a millionaire at some point in their lives. Financial troubles are keeping them from reaching that goal. They aren’t saving for retirement, either.
Realistically, these issues are a recipe for disaster.
David Irwin, the president of Raddon, believes banks could be the key to helping Americans figure out a better way for them to invest.
“Financial institutions have a powerful role to play in developing financial literacy today. A majority of customers who participate in a financial education program find value. Providing financial education can help institutions to stand out and build depth with their customers. Closing the gap between customer perceptions of their own financial literacy and reality will help them develop the skills to build financial health.”
