Mind-money connection: More than 50% say finances trigger stress, anxiety or depression

More banks and credit unions, especially those with digital offerings, increasingly know that fostering financial wellness and financial literacy go a long way in fulfilling the services they provide customers.

Jenius Bank this week released the findings of a survey it conducted that backs this case: The Mind-Money Connection: How Managing Your Finances Can Make You Happier. Los Angeles-headquartered Jenius is the digital division of SMBC MANUBANK, a wholly owned subsidiary of SMBC Americas Holdings, Inc., a member of SMBC Group.

The report, which surveyed more than 4,000 U.S. consumers, comes as many Americans face a wave of significant financial hurdles, from persistent inflation, struggles to break into first-time homeownership, rising debt levels and more.

Financial pressures, on top of other issues such as work and other responsibilities, can cause stress and anxiety to a degree that can impact nearly every facet of people’s lives from their relationships to their physical health to plans for their future, the respondents say.

“When you feel financially secure, it boosts your confidence and peace of mind. On the flip side, financial stress can take a heavy toll on your mental and emotional health,” said Julie Guntrip, Head of Financial Wellness at Jenius Bank. “It’s crucial for banks to recognize this connection between financial and mental wellbeing, and that starts with ensuring consumers have the knowledge they need to live a richer life.”

The report reveals what respondents believe it means to live a richer life in 2024, how financial stress manifests, and the ways in which these consumers receive and seek out financial advice.

For instance, in the past, being “rich” might have been described as splurging on luxury cars and homes, but in 2024, respondents found other ways to describe a rich life, some of which reflected a feeling of greater security.

Here’s a snapshot of the survey results.

• “Richness” Defined: Not having financial debt (33.4%), retiring early without concern of running out of funds (33.1%), and establishing generational wealth (27.8%) were the top definitions of “rich” among those surveyed.
• Wealth Perception Gap: Most respondents (80%) do not consider themselves rich, but 32% said others consider them to be, indicating they don’t see themselves as affluent as outsiders may perceive them.
• How Financial Stress Manifests: Over 50% of respondents say finances make them stressed and cause anxiety and/or feelings of depression, also reporting loss of sleep (52.8%), feelings of guilt or hopelessness (41.4%), regular headaches (32%), and strained relationships with friends/family (30.1%).
• The Ripple Effect of Financial Stress: Approximately 1 in 4 respondents said financial concerns have impacted their decision to have children, 36.2% would consider moving to a less expensive new location because of those concerns, and 55% of unmarried respondents say they’re less likely to get married due to their financial worries.
• Seeking Out Financial Advice: Social media is increasingly influential, with 20% of respondents participating in viral money management trends such as “quiet luxury,” or generally living below your means, and “loud budgeting,” and 65.7% of that cohort reporting improved mental health concerning their finances.

Enjoy these additional BAI Banking Strategies articles on the value of promoting financial literacy and wellness at banks and credit unions:

“How banks can personalize financial wellness”

“Multigenerational households want more personalized banking options”

“CRA and financial literacy: What banks need to know”

Rachel Koning Beals is Senior Editor at BAI.