Both financial professionals and psychologists agree: Americans are freaking out about their money. They’re stressed to the max! The financial stress is so bad, it’s causing a number of health problems. The two areas where people are frustrated the most is healthcare costs and the rising cost of living.
It would appear as if every day average costs for groceries, gas, and other necessities keeps growing. What you could buy 10 years ago for $20 isn’t what you can buy today. Everything is getting more expensive, but wages are stagnant. Because they’re financial stress is so high, it impacts other facets of American life.
“Money is a very important component of establishing a secure life,” said Norman Anderson, CEO and executive vice president of the American Psychological Association. “When people are financially challenged, it makes sense that their stress level would go up.” A lot of it has to do with a lack of financial education.
How a Lack of Education Causes Financial Stress
A study conducted by the APA found three-fourths of all Americans worry about their finances. 22% experience extreme stress. A lot of that comes from a lack of financial education. They’re not entirely sure where they stand when it comes to their money. Are they doing well? Are they properly prepared? Will something major happen in the future?
Another study done by Prudential found that a quarter of Americans didn’t quite have a good understand of their money. They’re completely falling behind the rest of the world, but have no idea they’re doing so badly. They might make it week-to-week, but otherwise are failing. It’s causing them a lot of financial stress and anxiety.
“Our relationship with money can affect our physical health, stress levels and state of mind, family dynamics and even performance at work,” says Prudential COO Stephen Pelletier. Here’s a list of our main worries:
Rising healthcare: 59%
Unplanned financial emergency: 55%
Unplanned health emergency: 53%
Income: 48%
Level of savings: 48%
Debt: 42%
Retirement planning: 41%
Money Problems and Relationships
A lot of the financial stress can impact relationships harshly. In fact, money problems are the number one cause of divorce in the United States. 19% of couples say they argue monthly about finances. 41% say financial stress negatively hurts their relationships with their partner. 31% say they’re constantly worried about money.
https://financialhelpers.com/the-fight-for-15-and-what-it-means-for-you/
A lot of those problem are disagreements over how to spend money. Increasing debt is also a factor as more Americans are spending more and using their credit cards. Americans hold $13 trillion in debt through all facets. It’s going to be difficult to pay all of that debt back and when we can’t, it strains our lives.
Financial Stress and Personal Health
Northwestern University conducted a study that concluded that high debt is hazardous to your health. The study found financial stress was directly responsible for increasing blood pressure and poorer health overall in young adults. People aged 24-32 shouldn’t be feeling that much stress or have high blood pressure.
“We now live in a debt-fueled economy,” says Elizabeth Sweet, lead author of the study. “Since the 1980s American household debt has tripled. It’s important to understand the health consequences associated with debt. You wouldn’t necessarily expect to see associations between debt and physical health in people who are so young,” Sweet says. “We need to be aware of this association and understand it better.”
A lot of that stress is indeed current debts, but a lot of it pertains to the future as well. 49% of young Americans don’t think they’ll be able to reach their retirement goals in time. Over 1,000 adults were surveyed and only 5% were found to be prepared for retirement. That’s a shockingly low number of people.
Sadly, those wonderful golden years we were looking forward to appears more like iron. More older Americans are working longer than ever, way past retirement age, just to keep up. It’s a sad state of affairs for Americans who work so hard. Dealing with financial stress shouldn’t be a constant norm.
