As if the everyday stresses of life weren’t enough, many people also have to worry about their finances.
According to recent statistics, money is a leading source of stress for Americans. Here are some of the most eye-opening financial stress statistics out there.
Editor Choice: Financial Stress Statistics
The following are important statistics regarding money and stress.
- In 2014, 72% of Americans felt stressed about money at least once during the previous month.
- 22% of the Americans experienced extreme stress about money during the previous month.
- 64% of the Americans said that money is a somewhat or very significant source of stress.
- 77% of American parents with children below the age of 18 years and younger adults indicated that money is a very significant source of stress.
- 75% of Millennials and 76% of Gen Xers said that money is a significant source of stress.
- In 2007, there was no difference in reported average stress levels between those whose household income was more or less than $50,000, with both groups reporting the same average levels of stress of 6.2 on a 10-point scale.
- By 2014, there was a clear gap in stress levels between low and high-income earners with those living in the lower-income group reporting higher overall stress levels of 5.2 points than those living in the higher-income group with 4.7 points on a 10-point scale.
- Stress causes around one million workers to miss work every day.
- Absenteeism from work due to depression leads to $51 billion in costs and $26 billion in treatment costs.
Financial worries are the leading source of stress for many Americans, according to the most recent Stress in America study performed by the American Psychological Association (APA). According to a study done by Harris Poll on behalf of the American Psychological Association (APA) in August 2014 among 3,068 people, the majority of Americans reported feeling worried about money at least once in the preceding month. The difference in stress levels between individuals of various socioeconomic backgrounds was non-existent by 2007, but by 2014, there was a significant difference between the two groups.
Money and Stress During the Covid-19 Pandemic
The Covid-19 epidemic has had an impact on people’s social and economic life, as well as their health. The economic crisis brought on by this epidemic has jeopardized the financial stability of the majority of the population.
The statistics provided below illustrate some important current financial stress trends to keep an eye on.
1. As of September 2020, 84% of the respondents in a survey reported feeling financially stressed.
Eighty-four percent of Americans are feeling financial stress, which is an extraordinarily high percentage. The percentage of those who said they were very or very worried dropped from 43 percent to 34 percent, according to the survey results. However, there was a significant difference across ethnic groups in terms of financial worries, with 30 percent of white respondents, 40 percent Black non-Latino respondents, and 45 percent Latino respondents.
2. 41% of respondents in a survey before the Covid-19 pandemic said that saving an emergency fund was a top stressor compared to 40% post-pandemic respondents.
I was stressed and anxious thinking about how long it takes to build up an emergency fund and then losing it all due to a virus outbreak in the United States. It is not just about the financial consequences, but also about the emotional toll it takes on a person.
3. In September 2020, 39% of people were worried about their financial situation in the last 12 months while 34% indicated optimism.
In 2020, more than one-third of the population expressed concern about their financial condition. A smaller proportion of individuals who were extremely or moderately hopeful than those who were concerned.
4. In April 2020 survey, 75% of the people were adapting and taking steps to adjust their finances due to the pandemic compared to 74% in the September 2020 survey who indicated making changes.
Eighteen percent took money out of their emergency reserves, seven percent borrowed against their retirement accounts, eleven percent intended to postpone bill and/or debt payments, and eleven percent had taken on more credit card debt to cover the shortfall. Individuals affected by these changes will suffer long-term consequences as a result of these changes. The likelihood of making financial changes was higher among non-white ethnic groups, with 70 percent of white respondents doing so, 86 percent of Black non-Latino respondents doing so, and 74 percent of Latino respondents doing so.
5. 84% indicated that assisting their family and/or friends caused some strain while 31 percent indicated that they had received financial and non-financial support from others.
Respondents said that they were giving assistance to family and/or friends while participating in COVID-2019. This figure demonstrates that the epidemic has had a long-term financial effect.
6. 58% more people are feeling financial stress during the pandemic than before it began.
(Source: John Hancock)
According to the 2020 Financial Stress Survey, the COVID-19 pandemic has resulted in increasing financial stress among American employees as a result of the disease.
7. 63% of employees said that their financial stress increased after the pandemic started.
The results of a January 2021 online poll performed by PwC on 1,600 full-time employed people in the United States from a range of sectors revealed that many workers are facing severe financial difficulties. When the pandemic hits, employees who are already under financial stress are four times more likely to report a drop in total family income and to have difficulty meeting their monthly household expenditures on time.
Monetary Stress Statistics
Can finances be a source of stress?
Statistics in this section will help you understand finances as major triggers of stress.
8. Financial concerns made 9 percent of Americans consider skipping going to a doctor when they needed health care while 12 percent skipped.
Many people in the United States experience considerable stress as a result of their financial situation. For financial reasons, some people put off getting medical treatment they need to be healthy.
9. 87% in a 2018 study agreed that nothing made them happier or more confident than feeling like their finances are in order.
(Source: North Western Mutual)
According to a Northwestern Mutual survey, financial stability was identified as the most essential characteristic of having a good perspective on life by an overwhelming 9 out of 10 Americans.
10. In the 2018 survey, money emerged as the dominant source of stress accounting for 44% compared to personal relationships 25%, and work 18%.
(Source: North Western Mutual)
When you consider that money, personal relationships, and job are just a few of the financial constraints that cause at least four out of every ten Americans to feel high or moderate levels of stress, this isn’t unexpected.
11. 28% of the Americans said that financial anxiety made them feel depressed sometimes every month, with 17% suffering depression as often as weekly, daily, and even hourly.
(Source: North Western Mutual)
More than a quarter of Americans reported feeling sad on a regular basis as a result of financial worry. When it comes to financial worry, the psychological and lifestyle ramifications are stark.
12. 69% of workers were stressed over their finances, with fully 72% admitting to worrying about their finances at work, and one in three doing that more than once a week.
(Source: Market Watch)
According to the John Hancock Financial Stress Survey, which was performed in 2020, financial stress is prevalent and is increasingly affecting our professional life.
13. 68% of women and 56% of men lose sleep occasionally because of financial worries.
People’s sleep is disrupted by financial concerns. According to a CreditCards.com study of 1,000 people conducted in 2016, women are more concerned about their financial well-being and sleep less than males when it comes to money.
14. In 2020, 63% of U.S. adults identified the economy as a significant source of stress, compared to 46% in 2019
(Source: American Psychological Association, 2020)
More than half of Americans are experiencing greater stress as a result of the economic downturn brought on by the Covid-19 epidemic.
15. Years of research continue to identify money as the top stressor in the US, with 90% of individuals linking money to their stress levels.
(Source: Thrive Global)
The ability to manage one’s finances is a crucial component of overall well-being. Money, on the other hand, continues to be a major cause of dissatisfaction, worry, and stress for the majority of Americans.
16. About 34% of individuals experience negative effects of financial stress on their sleep.
(Source: Thrive Global)
Because of their financial condition, almost a quarter of those surveyed report experiencing symptoms such as sleeplessness, tiredness upon awakening, nightmares, and night terrors.
17. PwC research found out that more than 40% of employees who are distracted by financial stress spend 3 hours or more at work thinking about or dealing with issues related to their finances each week.
(Source: Best Money Moves)
Each month, if 3 hours are spent thinking about or dealing with problems linked to stress every week, it equates to 12 hours each month spent doing the same thing. Every month, this equates to one day of lost productivity.
18. 82% of Gen Z’ers and 81% of Millennials say that finances are at least somewhat stressful.
Younger generations are much more worried about money than older generations, which is a worrying trend. According to the findings of the study, significant life events may also result in financial hardship. 62 percent of those surveyed were concerned about their financial situation in relation to purchasing a home, while 61 percent were concerned about their financial situation in relation to purchasing a vehicle.
19. 73% of those with a household income of less than $50,000 consider money to be a significant source of stress in contrast to 59% of those with a household income of more than $50,000.
(Source: APA 2020)
There is a significant difference between high- and low-income families in terms of their perception of money as a cause of stress. This gap increases even more, with 79 percent of those living below the poverty line compared to 57 percent of those living above the poverty line. Housing expenses are cited as a major cause of stress in the lives of individuals with household incomes of less than $50,000, compared to 44 percent of those with higher household incomes.
It is essential to highlight that financial worry affects a large proportion of the general public. Even respondents with incomes greater than the median ($50K to 99K) reported feeling worried when thinking about their money, with almost 60% reporting feeling this way when thinking about their finances. As a result, financial anxiety may manifest itself at any income level, suggesting that it is not only a result of a lack of financial assets.
Statistics on Factors that Underlie Financial Stress
Financial stress is not only caused by a lack of financial resources. Even individuals who make a good living may find themselves in a state of financial distress. Numerous underlying variables have a role in the development of financial stress. This section will be devoted to data that provide light on the variables that contribute to financial hardship.
20. About 31% of the surveyed Americans could not come up with $2,000 if an emergency were to arise within the next month while 47% of U.S. adults had not set aside an emergency fund that would cover three months’ worth of expenses.
This number serves as an indication of the instability of the financial system. Individuals may only build up emergency savings and, eventually, financial resilience by saving regularly and diligently. However, according to survey results, about 41 percent of Americans saved money in the previous year as of the end of 2018. Three-quarters of those surveyed had spent all of their wages, and almost 20 percent had acquired debt. These results demonstrate how ill-prepared adults in the United States were in the event of a disaster. Because of this lack of preparation, many people are experiencing significant levels of financial worry and stress. It is critical to understand the variables that contribute to financial stress and anxiety, as shown by these results.
21. 65% of women are anxious about their finances compared to 54% of men.
Women account for the largest proportion of those who are worried about their financial situation. While it comes to financial anxiety and stress, women are much more likely than men to experience both when thinking about their money and when discussing their finances. In social science research, the difficulties that women face have been widely documented. Women are more likely than men to take on household and family caregiving responsibilities, and these responsibilities frequently result in interruptions or reduced work hours, which can limit women’s earning potential, ability to save for retirement, and ability to qualify for an employer-sponsored retirement plan, according to the Bureau of Labor Statistics.
22. 51% of the financially literate subgroup reported feeling anxious when thinking about their finances, compared to 63% of those not deemed financially literate.
Individuals who are financially knowledgeable are those who can properly answer all three of the major financial literacy questions. It is common practice to include the Big 3 financial literacy questions in surveys and questionnaires to evaluate respondents’ fundamental knowledge of interest rates, inflation, risk diversification, and other financial concepts.
Financial knowledge seems to have a role in both decreasing and raising financial stress, depending on the situation. Individuals who are financially educated report less money stress than those who are not financially savvy. When it comes to retirement planning, both education and financial literacy are important factors to consider.
23. Financially anxious households are 2.6 percentage points less likely to plan for retirement while those that are stressed are 2.9 percentage points less likely to plan for retirement.
It is possible to be negatively affected by financial worry and stress in both the short and long term. Financial stress may lead to poor financial management and planning, which can have serious consequences. It has an impact on the people’ retirement planning as well as their debt management.
24. Financial stress affects 72% of the Millennials, 68% of Gen Z, 62% Gen X, and 46% Baby Boomers
Financial stress is caused by a number of factors, one of which is age. As a result of the epidemic, the vast majority of younger workers are feeling greater financial hardship, according to the survey. The proportion of individuals who are experiencing financial stress decreases as they become older.
Monetary Implications of Finacial Stress
A significant amount of money is spent on treating the symptoms of financial stress. It has a negative impact on the productivity of businesses and may result in financial losses and profit reductions. The statistics presented in this part will be devoted to the impact of financial stress on the economy in general.
25. A 2016 study showed that Americans spent about $41 billion on sleeping aids and remedies the previous year and this number was expected to jump to $52 billion by 2020.
People are increasingly reaching into their wallets to relieve the symptoms of financial stress, such as sleeplessness, that they are experiencing. Treatment for diseases caused by financial stress may be very expensive.
26. The annual cost of financial stress to the employer in lost productivity and absenteeism is $2,169 per employee.
(Source: John Hancock)
People who are experiencing higher financial stress show more signs of sadness and anxiety than those who are not experiencing financial hardship. According to the statistics gathered by John Hancock, financial stress is causing physical and psychological problems such as anxiety and insomnia in about 60% of employees. Financial stress is associated with an increase in the frequency of migraines. Some genetic variations of the so-called CLOCK gene, which is found in people with specific genetic variations, help them regulate things like body temperature and levels of the stress hormone cortisol. This mutation affects about one-third of the population, making them more susceptible to migraines during times of financial stress.
The economic ramifications of the COVID-19 issue have come to light the deep-seated financial difficulties that many Americans are experiencing. According to the statistics presented in this article, even prior to the pandemic, a significant portion of American families felt worried and agitated about their financial situation and were unable to withstand a moderate shock. When individuals spend their money properly, they have a tendency to save more. People who practice smart saving practices are better able to handle their stress.
People who are not married or who are jobless reported the highest levels of worry and tension about their personal finances. These included women, young adults, people with lower incomes, people with more financially dependent children, people who are not married or who are unemployed.
Workers get anxious and distracted at work as a result of the difficulties they face on a daily basis in attempting to pay bills and manage money. More than half of workers who are financially pressured feel ashamed to seek for assistance with their financial situation. Because companies must engage and keep productive workers, they must inquire about their financial well-being in a manner that respects the dignity and privacy of the people in question. Employee financial evaluations may help companies identify areas where individuals are experiencing financial difficulties, allowing them to target and customize services for their most vulnerable employees.
Q: What is the meaning of the term monetary stress?
Answer: Monetary stress, also known as financial stress, is a condition that occurs as a consequence of financial and/or economic events that cause anxiety, concern, or a feeling of shortage, all of which cause a physiological stress reaction in the individual.
Q: What are the effects of monetary stress?
Answer: Loss of control, worry, and other mental and emotional anguish may arise as a consequence of financial hardship. Financial stress has also been related to a cycle of increasing absence from work, worse job performance, and depression, according to research. Physical health issues such as sleeplessness, diabetes, and heart-related diseases may also result as a result of it.
Q: What is the definition of the term stress?
Answer: A state of being overwhelmed and the inability to deal with mental or emotional strain that occurs when your coping capacity has been overstretched or you have been under pressure for an extended period of time is referred to as stress. Any kind of change that causes emotional, bodily, or psychological pressure is referred to as a stressor. Stress is defined as the body’s reaction to anything that demands our attention or action on our part. It is possible for us to benefit from a little stress since it may help us execute our everyday tasks more efficiently. Stress, on the other hand, may leave us disturbed and frequently tired, and it can have a negative impact on our mental well-being.
Q: How does money affect stress levels?
Many studies have shown that financial concerns are associated with mental health disorders such as anxiety, depression, and drug addiction. Financial problems may lead to stress, which can have a negative impact on our mental health. Financial problems such as debt, a lack of sufficient funds to pay for regular expenses, and the possibility of an emergency may cause us to feel sad and/or worried, according to research.
Q: Which age group was the most stressed in the US in 2020?
According to the American Psychological Association’s 2020 Stress in America study, Gen Z individuals between the ages of 18 and 23 were found to have the greatest levels of stress, with the youngest being 18 years old. Seventy percent of the individuals in this age range experienced symptoms of depression such as fatigue, restlessness, loneliness, misery, and dissatisfaction, according to the survey results. Because they are entering adulthood at a time when the future seems unclear as a result of the Covid-19 epidemic, Generation Z people showed greater levels of stress and despair than previous generations. The oldest generations were the least worried, maybe because most of them may have more views that allow them to deal with the difficulties posed by the epidemic than younger generations.