Concerns about personal finances are one of the top contributors to poor mental health among U.S. adults.
- With high inflation rates, rising interest rates, and general economic turmoil, it is hardly surprising that financial concerns are top of mind for many Americans.
- A recent study from Point found that financial burdens troubled Americans of every generation and gender.
- Over half of all surveyed said that financial worries had negatively affected their mental health—more than a relatively low number who said climate change and social or geopolitical issues were affecting them.
- More than a third, about 36%, said that worries about personal finances caused them to lose sleep.
- While all generations and genders cited financial concerns as a top issue affecting them, Gen Z and women were more likely to be negatively affected by economic concerns, Point found.
Why it’s news
General economic turmoil has weighed heavily on the market, affecting consumer habits and various markets, but now concerns are weighing on many Americans’ mental health. These concerns are likely to continue affecting consumers’ shifting patterns and priorities.
Across most generations, Americans respond to financial concerns by cutting unnecessary expenses. However, survey respondents in the Gen Z category respond more proactively than their elders. Many choose to invest in a side hustle or seek financial advice on online platforms like TikTok.
All adults surveyed listed personal finances as their most pressing concern, but Gen Z was the most likely group to worry about their finances. Reasons for financial worries varied across generations.
Most Gen X respondents cited concerns about retirement savings, while Gen Zers worry that they will never be able to afford a home. All generations expressed serious concern about debt, but Boomers and Gen X were most likely concerned about credit card debt. Millennials and Gen Z admitted to having too much non-credit card-related debt.
Gen X and Millennials were more concerned than other generations about losing their jobs, Point found.
Over one-third of all respondents said they had lost sleep over concerns about personal finances, though Boomers were the least likely to say so. All generations reported additional strain on their relationship with their spouse or partner and increased arguments concerning finances.
Gen Z reported being the most likely to neglect health concerns over financial problems. Around 26% reported ignoring health problems due to financial stress. One-quarter of Gen Z respondents said they would forgo healthful foods or social engagements to save money.
When addressing these financial concerns, all generations had a similar approach—cutting unnecessary spending. Nearly half of all respondents said they had already done so. Younger generations were more likely to work a side hustle besides their current job.
Only 6.4% of all respondents have looked for financial advice on TikTok, but 15.8% of Gen Zers have looked to the video-sharing social-media site for guidance.