Tips to manage your financial mental health
Bankrate: 43% of Americans say money negatively impacts their mental health, causing anxiety and stress
Bankrate’s Sarah Foster says more Americans are feeling the pressure of inflation and rising prices this year compared to last.
That’s why she emphasizes the importance of having a financial “break glass in case of emergency” plan—just like knowing where the fire extinguisher is or where to exit in an emergency. A plan can offer peace of mind if your income suddenly changes.
“So, I think there’s a lot you can do to just mitigate the impact on your mental health just by knowing, separating what you can control from what you can’t control,” Foster noted. “If you form those guardrails and know the steps you need to take and what you would need to rely on if you were to face an income disruption or unexpected expenses, I think that does take some of the edge off of worrying about these recession fears and these tariffs.”
She said one of the best ways to take back control is by growing your emergency fund—and resisting the urge to panic spend, the idea that spending more somehow equates to saving more.
“If you’re one of the 2 in 5 Americans who say they’d be able to afford a thousand-dollar emergency expense, maybe that’s the time you can maybe look at speeding up some of these big-ticket purchases,” she shared. But we know that so many Americans don’t have the cash buffer stashed away.”
Foster said the connection between money and mental health is well-established—and it often affects financial behavior. Americans who are worried about money are more likely to pay a bill late or not put money in an emergency fund. She said the time to break those habits is now.
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