Financial Stress and Mental Health Statistics: What the Data Shows
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To understand the extent of financial stress and its impact on mental health, it can help to look at some statistics about financial stress in the United States. This article will discuss financial stress and mental health statistics and ways to get help to improve both financial wellness and mental health.
Financial stress and mental health statistics
Below are some statistics related to financial stress and mental health:
- One study published in Epidemiology and Psychiatric Sciences states that… “recent reviews assessing the health consequences of economic crises have revealed a significant relationship between these periods and psychopathology including suicide, onset or exacerbation of mood and anxiety disorders, heavy drinking, and psychological distress.”
- One report on financial stress by Experian states, “A staggering 68% of U.S. adults feel they have suffered from, or are currently suffering from, financial trauma.”
- The same Experian report states that approximately 65% of adults admit to “experiencing negative thoughts, flashbacks and anxiety when dealing with financial issues.”
- “Younger generations, namely Gen Z adults and millennials, stand out regarding their reported levels of stress and financial anxiety, with 73% of Gen Zers and 77% of millennials experiencing negative thoughts, flashbacks and/or anxiety about money.”
- Approximately “42% of U.S. adults say that money negatively impacts their mental health, and financial stress has resulted in a 34% increase in absenteeism and tardiness. Employees who are financially stressed are also five times more likely to be distracted by finances while at work.”
How financial counselling can help
Financial counseling can assist people who are experiencing various sources of financial stress. Financial counselors typically take a full assessment of each person’s financial situation, including their assets, income, debts, and financial goals. This process could allow financial counselors to form a personalized plan that helps individuals make progress on their financial journey.
Managing debt for financial wellbeing
One of the most common challenges that financial counselors help people address is debt. Debt can come in many forms, including credit cards, mortgages, vehicle loans, and personal loans. A financial counselor or advisor can help people figure out the best first step in addressing their debt. For some people, this may involve paying down a high-interest credit card balance. For others, it may mean transferring a balance to a low-interest card or loan. A financial expert can conduct an assessment of a person’s income, assets, and debts and help them determine a path toward financial freedom.
Building savings and other investments
Financial counselors can also help people develop a plan to build their savings and improve their financial health. This may involve figuring out what types of accounts a person can open, depending on any minimum deposits or other requirements. Financial advisors can also advise people on long-term investments, such as a 401(k), 403(b), or individual retirement arrangement (IRA). These decisions can be complex, depending on factors like age, lifestyle, and retirement location.
How a mental health professional can help with financial stress, anxiety, and depression
In addition to seeking advice from a financial counselor, people experiencing mental health challenges related to finances might consider speaking with a licensed therapist. A therapist can employ evidence-based strategies for common mental disorders, such as anxiety and depression, whether related to financial strain or other challenges.
Talking to an online therapist to improve your mental well-being
Some people experiencing financial pressure may think that therapy isn’t affordable under their present circumstances. However, affordable evidence-based support may still be an option through online therapy. With BetterHelp, people experiencing financial stress can connect with licensed mental health providers from home or anywhere with an internet connection. In addition to having sessions via audio, video calls, or live chat, individuals can contact their therapist at any time through in-app messaging, and their therapist will respond as soon as possible. By contacting their therapist through in-app messaging, people experiencing financial worries can communicate their concerns in the moment instead of waiting until their next therapy session.
Aside from offering flexible communication options, online therapy has been shown to be effective in numerous peer-reviewed studies. In one review, researchers looked at various studies and found that online cognitive-behavioral therapy (CBT) was effective for depression, social anxiety, panic disorder, phobias, and substance use disorder, among other disorders.
Takeaway
What are some financial stress and mental health statistics?
The following are two statistics about financial stress and mental health: 1) Sixty-eight percent of American adults report that they have experienced financial trauma. 2) Forty-two percent of U.S. adults say that financial concerns negatively affect their mental health.
How can financial stress affect wellbeing?
Financial stress can have a significant effect on mental well-being, especially in those from lower-income households. According to the American Psychological Association, barriers to care, such as funding cuts and a lack of health insurance coverage, can affect people’s ability to obtain much-needed care.
Can financial challenges lead to anxiety or depression?
Financial stress can sometimes cause such significant emotional challenges that a person may develop anxiety or depression. However, there are evidence-based treatments available for these disorders.
Where can you find financial counselling?
Financial counseling is often available through various organizations online. However, it may be wise to look carefully at what type of service is being offered. Some organizations might provide debt consolidation or debt relief, which typically involves negotiating with creditors to lower balances and make a single payment each month. While this type of financial support can be helpful in some cases, it often affects a person’s credit history. Those who want other options might search for a financial counselor who holds designation as a Certified Financial Planner.
Can a mental health professional help with financial stress?
While financial stress isn’t a diagnosable disorder, it can lead to disorders like anxiety or depression, which can be treated by a licensed mental health professional. A therapist can also treat any comorbid disorders, such as substance use disorder.
How can you reduce financial stress?
You might find that talking to a financial counselor leads to a few actionable strategies that reduce financial strain. While working toward greater financial stability, you might consider implementing some strategies to reduce stress, such as breathing exercises, journaling, meditation, and regular physical exercise, which can lead to the release of endorphins. Meeting with a therapist to receive mental healthcare services could also be helpful in managing your stress levels.
Can you get PTSD from financial stress?
Trauma can take many different forms, and virtually any type of serious trauma has the potential to lead to post-traumatic stress disorder. Mild financial problems are unlikely to result in PTSD. However, more severe ones—such as serious financial hardship or poverty, foreclosure, or bankruptcy—could cause PTSD, depressive symptoms, or other negative mental health outcomes in some young adults or adults.
How to cope with financial stress affecting mental health?
Taking steps to improve your financial well-being, if possible, may be the first step toward reducing your stress levels by promoting financially healthy decisions. Meeting with financial professionals or advisors could be helpful. You might also be able to lower financial stress levels by developing healthy coping strategies, such as journaling, reaching out for social support, and exercising.
Can therapy help with financial stress?
While therapy and counseling services typically can't help you address financial challenges like your employment status, household income, or a lack of sufficient resources, they may still be helpful. For example, if emotional spending, a gambling problem, or a shopping addiction are contributing to an inability to manage money in a healthy way, a therapist can help you address these symptoms. They may also be able to help you develop healthy coping mechanisms for financial stressors that are out of your control.
What are some techniques to manage both financial and mental stressors?
There is often a significant association between financial stress and mental health indicators among the adult population, making financial challenges a public health issue. To improve self-reported health measures in both areas, it can help to develop positive coping strategies—like exercising, journaling, and addressing attitudes toward money and any related mental illness symptoms in therapy. It could also help to work with a financial advisor to improve money management skills.
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