News
Americans Are Suffering Financial Burnout
Financial insecurity is deteriorating Americans’ mental health, according to a recent MarketWatch Guides study shared exclusively with Newsweek.
Despite the fact that inflation has declined considerably compared to its June 2022 peak, nearly half (47 percent) of respondents to a survey by the financial news and market data company said 2024 was the most stressful year in the world. their lives in financial terms. .
See more information: These Online Banks Offer Maximum Savings Rates
A majority of 88% of respondents said they feel some level of financial stress and 65% said their finances are their biggest source of stress, which is having a significant negative impact on Americans’ mental health.
Some 41 percent even said their finances had “destroyed” their mental health, and nearly two-thirds of respondents (64 percent) in the MarketWatch survey reported feeling “financial fatigue” – a feeling of burnout or exhaustion when dealing with issues financial.
Americans Are Suffering Financial Burnout Americans Are Suffering Financial Burnout Newsweek Photo Illustration
About 56% of respondents experienced loss of sleep due to financial stress; 47% felt physical fatigue; 45% had headaches; 38% reported weight gain or loss; 34% noticed changes in appetite; and 33% had digestive problems.
See more information: Best Place for Short-Term Investments: CD vs. CD high yield savings account
But what exactly is stressing Americans out? Around 57% stated that the cause was the high price of essential goods; 47 percent pointed to the lack of savingsand 46 percent to lack of income. Meanwhile, 37 percent blamed their debt and 39 percent the performance of the US economy. About 36 percent said the high housing cost was causing them stress, while 33 percent pointed out high interest rates.
Dealing with such a stressful situation and the anxiety it can trigger has caused many Americans to avoid fully controlling their finances. About 44% of respondents to the MarketWatch survey admitted that they will ignore a financial problem until it turns into a crisis. But avoidance and neglect can further erode an individual’s vulnerable financial situation.
A significant percentage of respondents admitted to having bad financial habits triggered by the stress they are experiencing. About 58 percent said they do not use a detailed report financial budget; 57% procrastinate important financial decisions; 44% spend too much to deal with stress; another 44% make purchases they cannot afford; and 41% avoid opening accounts or reviewing card statements.
Americans are often alone in experiencing these painful situations, with 58% telling MarketWatch that they hide their financial stress from loved ones.
Stressed young woman in front of a window. About 41% of Americans say their finances have “destroyed” their mental health. Stressed young woman in front of a window. About 41% of Americans say their finances have “destroyed” their mental health. Getty Images
In the wake of the pandemic, Americans have been hit by a cost-of-living crisis triggered by the skyrocketing inflationwhich in June 2022 reached a peak of 9.1 percent – far from the of the Federal Reserve 2 percent target.
See more information: How to protect yourself against inflation
In April, according to the latest available data, the consumer price index (CPI) was 3.4 percent higher than the previous year and 0.3 percent higher than in March, but the overall increase was lower than expected.
But although inflation has declined and appears to continue its downward trend, interest rates and mortgage rates remain high, keeping the cost of shelter high. Gasoline prices also rose 2.8% in April, suggesting drivers are suffering at the pumps.
Food prices, on the other hand, have been decreasing, making groceries cheaper.
Economic problems remain at the top of the list of concerns worrying Americans ahead of November’s presidential elections.
In your latest search, Gallup found that 36 percent of Americans thought economic problems were the most important issue facing the country today, with 17 percent concerned about the state of the U.S. economy overall and 12 percent about the high cost of living.
Non-economic problems, including government (21 percent) and immigration (18 percent), were considered the most important issues facing the country by about 75 percent of Americans in May.
Is the stress of financial insecurity affecting your mental health? Tell us about your experience by contacting g.carbonaro@newsweek.com
Unusual knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.