How to navigate financial stress

Money isn’t just a financial issue — it’s also an emotional one.

For half of Americans, financial stress is taking a serious toll on their mental health, according to a recent survey by Jenius Bank. A striking 50% of respondents reported battling anxiety, stress or depression tied to their finances, while 53% admitted to thinking of their finances daily.

These statistics reflect a deeper truth: financial uncertainty is an everyday reality that may affect how we think, feel and make decisions.

But while this pressure can feel relentless, understanding the root causes of financial stress could help you break free from its grip and take meaningful steps toward regaining control.

The top 5 sources of financial stress

According to Jenius Bank’s Mind-Money Connection survey, the five biggest sources of financial stress are:

•Not saving enough for retirement (49%): Nearly half of respondents worry about their financial future. A separate Bankrate survey indicates that 57% of Americans feel behind on retirement savings, underscoring a widespread concern about long-term financial security.

•Feeling behind their age group regarding investing, savings and retirement (32.3%): The pressure to keep up with others can create a sense of inadequacy, leading to emotional and financial strain. This feeling of being “behind” often drives people to overextend themselves in an attempt to catch up, which may lead to even greater stress or financial missteps.

•Mounting debt (31.8%): Debt is a huge burden. According to Bankrate’s 2024 Credit Card Debt Report, a record-high percentage of Americans have more credit card debt than savings. The constant pressure to make payments on accumulating debt weighs heavily on individuals and families alike.

•Making the wrong/costly financial decision (31.2%): The fear that one wrong move could set you back financially causes many to feel paralyzed. This fear may lead to inaction and delay important financial decisions, which only adds to the stress.

•Monthly income won’t cover monthly expenses (29.8%): Even with cooling inflation rates, the high costs of essentials like housing and groceries continue to put pressure on already tight budgets. When every dollar is stretched thin, the stress of getting through the month may feel insurmountable.

How financial stress impacts life

Financial stress impacts every aspect of our daily lives — from our physical health to our relationships and mental well-being. The responses from Jenius Bank’s Mind-Money Connection survey paints a clear picture of how deeply financial anxiety influences everyday experiences.

Physical health

The connection between financial stress and physical health is hard to ignore.

According to the survey, 52.8% of respondents reported a lack of sleep as their most common symptom. Sleep deprivation is well known to have widespread consequences on both physical and mental health.

Additionally, 32% of people reported regular headaches linked to financial stress. Chronic headaches can be physical manifestations of constant worry and strain. The symptoms may contribute to a cycle where stress leads to poor health, and poor health leads to more stress.

Over time, financial stress may compound and impact everything from daily productivity to long-term wellness.

Relationships

Financial stress also may take a toll on close relationships.

According to Jenius Bank’s Mind-Money Connection survey, 30.1% of respondents said financial anxiety had strained their relationships with friends and family, while 42.5% mentioned that it negatively impacted their romantic relationships.

Money is one of the leading causes of conflict in relationships, especially when partners have different financial priorities or struggle to achieve shared financial goals. This strain could lead to arguments, distrust and even breakups.

Over time, the pressure and conflicts surrounding finances may erode the foundation of long-term commitments.

Mental health

Unsurprisingly, financial stress also weighs heavily on mental health, with 41.4% of respondents reporting feeling guilt or hopelessness in response to their financial situation.

These emotions may be paralyzing, making it hard to take proactive steps to improve finances, and may contribute to depression and anxiety. Many people may find themselves in a cycle where financial problems feed mental health struggles and vice versa.

Future plans

Financial stress doesn’t just affect the present — it reshapes plans for the future.

Nearly 1 in 4 respondents said their financial outlook made them less likely to have children, and 53.6% of unmarried respondents are less likely to get married because of their financial situation.

These numbers show how deeply financial anxiety can impact major life decisions. For many, starting a family or entering a marriage seems like an unattainable goal when finances are uncertain. As a result, life events that should bring joy and security may become sources of anxiety.

Voting

As people think about their financial future, many are considering the political landscape for solutions.

More than half (54.5%) of survey respondents named inflation as their top concern leading up to the election, followed by taxes (12.1%), job security (8.2%) and student loan debt (8%).

Many people (32.9%) think their finances will improve following the election. In fact, 6.3% of respondents believe that the economy will improve in the next 6 to 12 months and help alleviate the financial stress they’re feeling.

It appears many survey respondents believe the election is a potential turning point for their financial well-being.

How to deal with financial stress

Navigating financial stress requires more than just good intentions; it takes specific actions to help you feel in control.

Here are a few targeted strategies to help manage your financial anxiety and stress.

•Automate your savings and payments: Setting up automatic transfers to a dedicated savings account ensures you’re consistently building a financial cushion without the temptation to spend. Automating your bill payments can help avoid late fees and reduce the mental burden of managing due dates. Jenius Bank offers easy-to-use tools for automating your financial life, making it simpler to stay on top of your priorities.

•Prioritize debt with a plan: If debt is a source of stress, many experts recommend focusing on the debt avalanche method. This method advises you to pay off the highest-interest debt first while making minimum payment on others. This approach reduces the total interest you pay over time. You can also consider a personal loan to help consolidate debt into a single, more manageable monthly payment.

•Set achievable financial goals: Break your large financial goals into smaller, more manageable steps. For example, instead of focusing on saving thousands for an emergency fund, start by setting aside a small amount each month. Tracking your progress using budgeting tools may keep you motivated and help make your goals feel more attainable.

Taking these steps can help alleviate financial stress by putting you back in control of your finances, allowing for a clearer path forward.

The bottom line

Financial stress is a pervasive issue that could affect everything from physical health to relationships and future plans.

The Mind-Money Connection survey conducted by Jenius Bank reveals that half of respondents are struggling with anxiety, stress or depression tied to their finances. Top concerns include saving for retirement, managing debt and meeting monthly expenses. These pressures not only disrupt daily life, but may create a long-term sense of uncertainty and frustration.

However, there are practical steps you can take to help alleviate some of this financial burden. Automating your savings and bill payments can help simplify your financial life and reduce stress. Prioritizing high-interest debt and breaking down large financial goals into manageable steps can also help you make steady progress.

It’s important to remember that while financial challenges may feel overwhelming, you don’t have to navigate them alone or all at once. Taking control of your finances, one step at a time, can help relieve some of the emotional and mental strain that comes with money management. By focusing on small, achievable actions, you may begin to build a more secure financial future.

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Jenius Bankᵀᴹ is a division of SMBC MANUBANK. Member FDIC.