Why is money such a powerful stressor?

It's no secret that money is a considerable source of stress for many people. In fact, money, the economy, and health issues were among the top-rated major stressors in a 2023 American Psychological Association (APA) survey of United States adults.

Mental and physical health can be harmed by prolonged stress, such as stress stemming from money issues. When you’re stressed, your body responds by releasing adrenaline and cortisol. If levels of these hormones remain elevated over an extended period, they can contribute to health problems like anxiety, depression, heart disease, and digestive and sleep problems. 

Aside from activating your body’s natural stress response, financial worry can also increase behaviors linked with health problems. These may include less physical activity, poor sleep habits, and increased use of alcohol, as well as stress-related weight gain or loss.

Where does money stress come from? And how can you learn to cope with the anxiety? Here’s what to know.

Sources of money stress

There's no single reason people in the U.S. worry about money. Instead, there are many, and they include the following.

Debt

Consumer debt has grown steadily since the mid-2010s. This type of debt includes car loans, mortgages, credit card debt, student loans, and more. The average household debt in 2024 was over $100,000, according to the Federal Reserve Bank of New York.

Lack of job security or stable income

It’s well understood by health experts that job instability is a significant cause of stress. People who are unemployed may be at higher risk for stress-related conditions including stroke, heart attack, high blood pressure, and physical pain.

Medical bills

Medical debt is a top reason people file for bankruptcy. In general, people in worse health who have lower incomes are more likely to owe money for medical expenses. One 2021 analysis from the Census Bureau suggested that 1 in 12 U.S. adults have medical debt.

General uncertainty

In surveys, people frequently cite uncertainty about the economy, the future, and their health (and the health of others) as a very, or somewhat significant, source of stress.

Caring for family members

If you provide unpaid care for a family member who is ill or has a disability, you are not alone. About 14 percent of the U.S. population provides unpaid elder care, according to a 2023 Bureau of Labor and Statistics report. This care can stretch already limited time and financial resources, which can also increase stress.

How to cope with money stress

Not all stress is unhealthy. Temporary stress can alert us to when something is wrong and motivate us to find new solutions. But when stress persists, or when you have few resources to cope with it, health problems can arise. 

It can be difficult to discuss money problems with others. But if you feel overwhelmed by financial stress, it’s wise to seek support. You may want to begin by having a discussion with trusted friends and family, or by reaching out to a healthcare provider. They can offer advice and point you to resources that may help, including mental health care specialists. Support groups, like those offered by Debtors Anonymous, can also offer resources and advice from other people who have had experience with money stress. The more skills you develop for coping with stress, the better you may feel over time.