Inflation Anxiety

Bankrate Survey Shows More Americans Struggle with Money Worries, Hurting Their Mental Health

A new survey from financial information group Bankrate shows that money worries are taking a toll on Americans’ mental health, leading to negative impacts. The survey revealed that 52% of respondents listed money as the biggest factor causing stress, compared with 42% who said their own health and 41% who listed current events. This marks an increase from last year when 42% of US adults said money was their biggest concern.

The survey defined mental health distress as anxiety, stress, worried thoughts, difficulty sleeping, and depression. The results come as Wednesday’s inflation report is predicted to show year-on-year price increases staying at 5% for the second month in a row through April. Analysts predict the inflation rate will likely exceed that figure given recent increases in used car prices and ongoing wage hikes.

Furthermore, financial struggles such as car repossessions and home foreclosures have made matters worse. Within the “money” category, concerns about inflation ranked the highest, with 68% naming high prices as their biggest worry. Meanwhile, 60% of respondents were worried about paying for everyday expenses, and 56% said lacking emergency funds had them on edge.

The frequency of concerns about money has increased, with 56% of people with money concerns saying the worries happen at least once a week, up from 52% last year who said the same. The survey also found important demographic differences in the rates of concern. Women were more likely to feel the negative impact of rising prices and inflation, with 61% citing these factors as the biggest contributor to their mental health issues, compared to 51% of men.

Among different generations, 60% of Gen Xers, aged 43 to 58, said that money was negatively impacting their mental health, compared with 55% of millennials, 52% of Gen Z, and 45% of baby boomers. Lindsay Bryan-Podvin, a financial therapist interviewed by Bankrate, said that Gen X is a “sandwich” generation that supports multiple dependents. This puts them in a disadvantageous position, as they not only care for themselves but also for their children and aging parents.

“There are several sobering statistics in this report, with inflation at the center of many of these money worries,” said Ted Rossman, Bankrate senior industry analyst. “Despite a strong job market, wage growth has not kept pace with the rising cost of living. Debt has been rising, and savings have been dwindling.” These factors, coupled with the ongoing pandemic, have created a challenging environment for many Americans.