Money stress creeps up on you. It is not necessarily that your bills are due or that you have received a bank statement with a negative balance. Sometimes, it is rent that produces that gut-in-your-stomach sensation, the dread that creeps in at midnight when you consider medical bills, or the hassle that comes from thinking that you have set aside enough for retirement. Such economic concerns that are not just ambient static but have a quantifiable effect on mental well-being are what millions of Americans endure.
Money stress isn’t about the money. All right, not being able to pay the mortgage or the groceries does come into it, but usually it’s how we feel about money that catches us out. Research by Soomin Ryu and Lu Fan shows financial issues are actually all about our emotional reaction to financial stress, and not dollars and cents. Two individuals earning the same wage can have strongly differing feelings about being adequately financed, depending on expectations, obligations, and history. It’s this attitude that accounts for much of the psychological tension.
Money and mental health walk together. The National Health Interview Survey reported that the biggest money-worrier group turned out to be the most psychologically impacted. We are not talking about fear per se here – the psychological suffering, as scored by the Kessler 6 Scale, reported that aside from fear, individuals suffer from anxiety, helplessness, fatigue, irritability, and even feel worthless, and that all is for nothing. Of the individuals under such conditions, there are fewer suffering from symptoms if they are worried about paying bills, meeting the cost of healthcare, and maintaining the same standard of living. The relation is one where even after adjusting for age, sex, race, health, and other covariates, the trend persists.
However, the money issue doesn’t necessarily put every individual in a bad mental state. The effect of money stress on mental health is obvious for a certain group of people the most. For instance, singles tend to be the most stressed about money and mental health, the unemployed, the low-income families, and people living in rented property are the ones who face both financial stress and psychological distress the most. Status in terms of relationships, for example, is a factor that sets things apart, since adults who are not married tend to be more impacted by money stress as compared to those who are married or living together. The same can also be said about the unemployed, incomes of less than $35,000, and non-homeowners. They usually do not have enough resources or support systems for the bounce back; thus, they become more prone to the psychological aftermath of financial stress.
Why are marriage, work, income, and homeownership so important? It’s not merely a matter of having more money—though that’s beneficial. Being partnered typically means being able to divide up responsibilities, emotional as well as economic. Work brings not just income but routine, meaning, and social engagement. Greater income and home ownership create stability and a cushion against surprise expenses. Combined, these elements serve as defense shields, lessening the burden of financial pressure and decreasing the risk of psychological distress.
Financial difficulties can cause stress that influences a person’s mood in a negative way. Continual stress will sap your vigor, cause tension between your relationships, and make your physical health worse. Studies link long-term financial worries with a weakened immune system, heart disease, and other health problems. People who are under financial stress are likely to give up on good habits like eating right, exercising, or visiting the doctor, which in turn can make their condition worse.
So, what can make a difference? Both individual and systemic solutions matter. At the individual level, developing money literacy, getting assistance from family or friends, and using counseling can help. Providers—be they financial planners, therapists, or counselors—must understand the very close relationship between money, stress, and mental health. At the system level, policies to enhance access to cost-effective healthcare, job support, and personal finance education and coaching can help insulate the most at-risk.
Financial pressure can be a reality for most, but knowing how it affects us and determining who is most vulnerable can assist us in creating a society in which mental well-being is not dictated by financial concerns.