FINANCIAL ANXIETY - IS THE BIGGEST SLEEP THIEF

Article written by Scott M. Kahan in Stroll Chappaqua - May 2024 Magazine

In an era of unprecedented change and economic volatility, the sleepless nights associated with financial concerns are becoming all too familiar. Despite an overall confidence in their financial well-being, a significant number of Americans, particularly from the younger generations, are grappling with anxiety about money that permeates various aspects of their lives.

FINANCIAL CONFIDENCE VS. LIFE DOMAINS:

A recent survey reveals that while 57% of Americans express confidence in the state of their finances, this sentiment pales in comparison to their confidence in other areas of life. A staggering 79% feel strongly about their friendships, 75% about their mental health, 74% about their physical health, and 69% about their job stability. This stark contrast highlights the unique challenges that financial anxiety poses, especially for younger generations.

GENERATIONAL DIVIDE IN FINANCIAL ANXIETY:

For Gen Zers and Millennials, the weight of financial uncertainty is particularly burdensome. When asked about the consequences of financial uncertainty at least once a month, 54% of millennials and 47% of Gen Z respondents admitted to feeling depressed. In stark contrast, only 20% of Baby Boomers reported a similar emotional toll. The sleep disruptions caused by financial stress are palpable, with 44% of Gen Zers and 53% of millennials reporting regular sleep disturbances, contrasting with the 37% average across all age groups.

IMPACT ON RELATIONSHIPS AND HEALTH:

The ripple effect of financial anxiety extends beyond personal well-being to relationships and physical health. A concerning 42% of Gen Zers and 45% of millennials noted that financial issues have created problems in their relationships with friends and family. 

Moreover, over a third of respondents from both generations reported that money problems have made them “physically ill” at least once a month. 

NAVIGATING THE STORM: COPING STRATEGIES:

• Financial Literacy: Invest time in improving financial literacy. Understanding budgeting, investing, and debt management can empower individuals to take control of their financial futures.

• Open Communication: Establish open communication about money within relationships. Discussing financial goals, concerns, and strategies can help alleviate tension and foster mutual understanding. Mental Health Support: Prioritize mental health by seeking support when needed. Therapy, counseling,or support groups can provide valuable tools to cope with the emotional toll off financial anxiety.

• Emergency Fund: Build and maintain an emergency fund. Having a financial safety net can offer peace of mind during uncertain times and act as a buffer against unexpected expenses.

PLANNING MATTERS:

The pervasive impact of financial anxiety on sleep, relationships, and overall well-being is a pressing concern. Acknowledging these challenges is the first step towards finding effective coping strategies