Many Americans are increasingly avoiding the stress associated with checking their financial accounts, according to new research from Wealth Enhancement. The firm’s Mood & Money survey reveals that nearly 44% of respondents have refrained from checking a financial account in the past year due to the anxiety it provoked.
This avoidance highlights a significant emotional connection to finances, which are often intertwined with personal identity and self-worth. The survey, which explored the emotional aspects of financial decision-making, found that 61% of Americans experience stress related to money. Furthermore, more than 40% of those surveyed reported that their financial stress has intensified in the past year, primarily due to rising living costs, housing expenses, and medical bills.
In-depth findings indicate that 55% of participants pointed to escalating living costs as the chief source of their financial anxiety, followed by 42% who cited housing expenses and 26% who identified medical bills as contributing factors. Nearly half of those surveyed expressed feelings of anxiety or frustration regarding money, with over a third stating that their financial situation negatively impacts their self-perception.
Emotional Spending and Financial Avoidance
The connection between emotions and financial behavior is well-documented, but the findings from Wealth Enhancement reveal just how deeply these issues are embedded in everyday life. Alarmingly, 39% of respondents admitted to spending money as a way to alleviate feelings of anxiety or sadness. This often results in a temporary sense of relief that can lead to further financial strain. Others cope by avoiding financial responsibilities altogether, with only 17% of respondents feeling fully in control of their financial futures.
Behavioral finance research suggests that individuals are naturally inclined to seek short-term comfort rather than long-term financial optimization. This instinct leads many to avoid situations that feel threatening while pursuing fleeting relief, creating a cycle of avoidance that exacerbates anxiety over time.
From Avoidance to Financial Engagement
Experts suggest that addressing financial stress begins with awareness. Recognizing the impact of stress on decision-making can help individuals break this cycle. A vital shift is to view money as a tool rather than a measure of personal worth. By reframing financial success and failure in this way, individuals can mitigate some of the emotional weight associated with their finances.
Conversations about money can also provide significant relief. Almost half of survey participants reported having discussed their financial stress with a family member or friend, underscoring the importance of dialogue in alleviating anxiety. These discussions can help transform financial challenges from silent burdens into shared experiences, fostering a sense of community and support.
The Mood & Money survey emphasizes that financial well-being is closely linked to emotional health. It is not merely the numerical values in accounts that create stress, but rather the uncertainty surrounding those figures. When individuals have a structured plan and a reliable advisor, the uncertainty that often breeds anxiety can diminish.
For those who find themselves hesitant to open a financial statement or check their balance, it is important to realize that they are not alone. Taking small steps towards engagement—such as reviewing a recent statement, confiding in a trusted individual, or consulting a financial advisor—can significantly improve one’s outlook.
One striking finding from the survey indicates that working with a financial advisor can have a profound impact on reducing stress. Among those who have sought advice, 88% reported feeling less stressed afterward. This reduction in anxiety can be attributed to the clarity and confidence gained from working with a knowledgeable professional. Financial advisors can help transform vague worries into actionable plans, such as addressing debt, rebalancing investments, or developing strategies that align with personal goals.
Ultimately, small actions can restore not just financial order but also a sense of calm, confidence, and control. This emotional stability forms the foundation for lasting financial wellness, allowing individuals to navigate their financial journeys with a clearer mind and a more empowered perspective.
