Recent surveys reveal that Americans spend hours each week thinking about their finances. Rising prices, mounting debt, and uncertainty about the future all contribute to financial stress. Add in steep housing costs, concerns over tariffs raising the price of goods, and lingering worries about retirement savings, and it’s no surprise that, according to a Bankrate survey conducted earlier this year, more than 43% of Americans say money negatively affects their mental health. In this article, we discuss what’s driving financial worries and offer strategies to boost financial security.
The Pressure of Rising Costs
Inflation continues to affect nearly every aspect of daily life. Food prices have increased more than 20% over the past three years, straining household budgets. And home prices and mortgage rates remain high. This puts a big question mark on home ownership for the younger generations. In fact, according to NAR (National Association of REALTORS) data, the number of first-time home buyers—typically led by younger Americans—dropped to 1.14 million in 2024. That’s the lowest level on record since the NAR started tracking first-time buyers in 1989. Renters face struggles as well, with average rents increasing more than 25% since 2019.
Tariffs also play a role in pushing prices higher, which trickles down to consumers. For small businesses and households alike, higher costs on goods and materials add to financial pressure.
Debt and Retirement Worries
Credit card debt has been on an upward trend since 2021. The rising costs of necessities like housing, groceries, and gas have pushed many Americans to reach for credit cards just to make ends meet.
At the same time, Americans are concerned about their financial futures in retirement due to a lack of savings, market volatility, and uncertainty surrounding Social Security. A 2024 Bankrate survey discovered that 57% of Americans worry they are falling behind on building an adequate nest egg.
What Helps Ease Financial Stress
Three main factors that contribute to easing concerns about money are: higher income, reduced debt, and broader economic improvements. For example, when inflation cools and wages go up, people are better prepared to plan and save.
Younger Americans, in particular, worry about job security, with layoffs and limited career opportunities top concerns. A strong labor market creates stability and more spending power. When jobs are steady and paychecks grow, people feel more secure about their money. That confidence shows up in how they spend, save, and invest, and it gives the economy an extra boost.
Practical Solutions
While we can’t control factors like inflation, tariffs, or the broader economy, there are steps to take to get back on the right path. Here are some ways to improve financial stress:
- Build a budget. Tracking income and expenses provides a clear picture of where money is going and helps pinpoint areas to cut back.
- Start an emergency fund. Even starting with a small cushion of $500–$1,000 can ease stress and help prevent the need to rely on high-interest credit cards when financial emergencies happen.
- Focus on paying down high-interest debt. Prioritize credit cards and personal loans first. Knocking out those high-interest balances frees up money in your budget and helps create financial security.
- Increase retirement contributions gradually. Setting up automatic transfers into a 401(k) or IRA, even starting with 1–2% of income, helps build long-term savings.
- Seek advice and guidance. It’s no secret that many Americans are facing financial insecurity right now, but the good news is that there are plenty of trusted voices and perspectives to lean on. Seek out free tools and workshops that can help with decisions and planning, which you can find through many employers, banks, and community organizations. And don’t discount reading articles and newsletters, listening to podcasts, and following social media accounts of reliable sources. These can all improve financial literacy and help you make informed moves with your money.
Inflation, housing affordability, and rising debt continue to weigh on Americans’ minds, but the information and strategies above can help ease worries and create a path to financial stability.
