Americans Are Suffering Financial Burnout


Financial insecurity is deteriorating Americans’ mental health, according to a recent study by MarketWatch Guides shared exclusively with Newsweek.

Despite the fact that inflation has eased considerably compared to its June 2022 peak, nearly half (47 percent) of respondents to a survey conducted by the financial news and market data company said that 2024 has been the most stressful year of their lives money-wise.

A majority of 88 percent of respondents said they feel some level of financial stress, and 65 percent said their finances are the biggest source of stress, which is having a significant negative impact on Americans’ mental health.

Some 41 percent even said their finances have “destroyed” their mental health, and nearly two-thirds of respondents (64 percent) to the MarketWatch survey reported feeling “financial fatigue”—a sense of burnout or exhaustion when dealing with money matters.

Americans Are Suffering Financial Burnout

Photo Illustration by Newsweek

Some 56 percent of respondents have experienced loss of sleep due to financial stress; 47 percent have felt physical fatigue; 45 percent have had headaches; 38 percent reported weight gain or loss; 34 percent noticed changes in appetite; and 33 percent experienced digestive issues.

But what exactly is stressing Americans out? Some 57 percent said the cause was the high price of essential goods; 47 percent pointed to their lack of savings, and 46 percent to their lack of income. Meanwhile, 37 percent blamed their debt and 39 percent the performance of the U.S. economy. Some 36 percent said that the high cost of housing was causing them stress, while 33 percent pointed to high interest rates.

Dealing with such a stressful situation and the anxiety that this can trigger has led many Americans to avoid handling their finances entirely. Some 44 percent of respondents to the MarketWatch survey admitted that they will ignore a financial problem until it becomes a crisis. But avoidance and neglect can further corrode an individual’s vulnerable financial situation.

A significant percentage of respondents to the survey admitted to bad financial habits triggered by the stress they’re experiencing. Some 58 percent said they do not use a detailed financial budget; 57 percent procrastinate on important financial decisions; 44 percent overspend to deal with stress; another 44 percent make purchases they cannot afford; and 41 percent avoid opening bills or reviewing card statements.

Americans are often alone experiencing these painful situations, with 58 percent telling MarketWatch that they hide their financial stress from loved ones.

Stressed young woman standing in front of a window. Some 41% of Americans say their finances have “destroyed” their mental health.

Getty Images

Following the pandemic, Americans were hit by a cost-of-living-crisis triggered by skyrocketing inflation, which in June 2022 reached a peak of 9.1 percent—far from the Federal Reserve’s goal of 2 percent.

In April, the latest data available, the consumer price index (CPI) was 3.4 percent higher than a year before and 0.3 percent higher than in March, but the overall increase was less than expected.

But while inflation has come down and appears to be continuing its downward trend, interest rates and mortgage rates remain high, keeping the cost of shelter up. Gasoline prices also shot up 2.8 percent in April, suggesting that drivers are suffering at the pump.

The price of food, on the other hand, has been declining, making groceries cheaper.

Economic problems remain high on the list of concerns troubling Americans ahead of the November presidential election.

In its latest survey, Gallup found that 36 percent of Americans thought that economic problems were the most important issue facing the country today, with 17 percent worrying about the state of the U.S. economy in general and 12 percent about the high cost of living.

Noneconomic problems, including the government (21 percent) and immigration (18 percent), were considered the most important issues facing the country by around 75 percent of Americans in May.

Is the stress of financial insecurity affecting your mental health? Tell us about your experience by contacting g.carbonaro@newsweek.com

Uncommon Knowledge

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

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