Money stress weighs heavily on Americans, survey finds

(InvestigateTV) — Americans are increasingly anxious about money, as rising costs, economic uncertainty, and holiday expenses weigh heavily on households.

John Kiernan, managing editor of WalletHub, said this financial stress is taking a toll on mental and emotional health.

In a new survey, 69 percent of Americans told WalletHub they feel insecure about their finances. And nearly three in four said their financial situation negatively impacts their mental wellbeing.

“Forty-four percent of Americans told us they believe their financial status defines their self-worth,” Kiernan said. “So, if people are not feeling good about themselves financially, they’re not feeling good about themselves overall, which can kind of create a cascade of problems, especially when we’re in trying economic times.”

He said these feelings of inadequacy and insecurity can lead to some bad money habits. In fact, 61 percent told WalletHub they spend money to improve their mood.

“That can help maybe five minutes or an hour or a week, but if you keep doing that it’s going to turn the corner to being completely unaffordable and really ruining your mood,” he cautioned. “So, that’s a dangerous game to play.”

To counter these stresses, Kiernan recommends building structure around money management. He said creating and reviewing a budget each paycheck can give people a sense of control and even improve confidence.

He also suggested exploring a side hustle or focusing on investments in the months ahead as ways to redirect energy, improve mood, and regain a sense of financial security.