Roughly seven in 10 people (69%) say improving their finances would have the biggest impact on their overall happiness, and more than half (56%) say the right tools and guidance could make managing money less stressful.
Note: This study was conducted among 1,006 U.S. adults ages 18 and older. Throughout this article, respondents are referred to as “Americans.”
Key takeaways:
- Money is the number one source of stress for Americans (43%), ahead of the state of the world (18%) and work and career (12%), and 62% say it’s one of the biggest stressors in their life right now, including 71% of Gen Z.
- For many, money and mental health are inseparable. Roughly six in 10 (61%) say their financial situation has a direct impact on their mental health, including 68% of Gen Z and 67% of millennials.
- When finances are in order, people feel in control of their life. Eight in 10 (80%) say so, and 69% say improving their finances would have the biggest impact on their overall happiness.
- For younger Americans, coping can deepen the cycle. 65% of Gen Z spend money to lift their mood or manage stress.
- The right tools could make a difference. More than half (56%) say the right tools and guidance would make managing their finances feel less stressful, including seeing their full financial picture in one place (26%).
Money has long ranked among the biggest sources of stress in American life. Ahead of World Mental Health Day on October 10, the connection between financial strain and mental well being deserves a closer look.
New data from Intuit Credit Karma finds that for many Americans, money stress extends well beyond their finances, affecting their mental health and how they navigate everyday life.
Money tops the list of what’s weighing on Americans
When asked to name their single biggest source of stress, Americans point to money by a wide margin. More than four in 10 (43%) say finances are their top stressor, far ahead of the state of the world and current events (18%) and work or career (12%).
That pressure is widespread, but it’s heaviest for younger adults. Almost two-thirds of people (62%) say money is one of the biggest sources of stress in their life right now, rising to 71% of Gen Z. The strain also shows up in how people describe their own financial situations: “stressed” is the most common feeling (22%) overall, while “overwhelmed” tops the list for Gen Z (22%).
When it comes to what’s driving that stress, Americans point to the cost of everyday life. The rising cost of living, including household essentials, tops the list at 43%, followed by not having enough saved (29%) and keeping up with bills and expenses (28%).
Money stress often reaches far beyond finances. Roughly six in 10 Americans (61%) say their financial situation has a direct impact on their mental health, including 68% of Gen Z and 67% of millennials.
Money impacts sleep, relationships and focus
The effects of financial stress bleed into nearly every aspect of daily life. Asked which areas of life it affects, people most often name their ability to relax or enjoy free time (46%) and their mental health (46%), followed by their sleep (43%), social life (29%) and eating habits or appetite (28%).
The connection is particularly clear when it comes to sleep: nearly two-thirds of Americans (62%) have lost sleep over money in the past month. The strain extends into relationships and work, too. More than a third of people (36%) say financial stress has taken a toll on their closest relationships, rising to 48% of millennials, and financial stress has hurt work performance for 41% of millennials and 36% of Gen Z. It also makes it hard to focus on anything else. Nearly half of Americans (48%) say they can’t focus on other parts of their life when they don’t feel they have a grasp on their finances, rising to 54% of Gen Z and millennials.
When people describe how money stress affects them mentally and emotionally, the most common effects are worrying about the future (43%), feeling anxious or on edge (36%) and feeling mentally exhausted (33%). Many also carry a sense of guilt, with 30% saying they feel guilty about spending money.
For some, the effects go beyond day-to-day stress and begin shaping bigger decisions. In the past year, more than a third of Americans (35%) skipped social activities or plans because of financial stress, rising to 42% of Gen Z, while nearly a quarter of Gen Z and millennials (23%) put off major life milestones.
Money worries become a constant mental load
Part of what makes financial stress so draining is how little it lets up. Half of Americans (50%) think about their finances at least several times a day, including 28% of Gen Z who say money is on their mind constantly.
For younger adults, that mental load may be about more than a bill or expense. More than a quarter of Gen Z (27%) say what stresses them most is never feeling like they have enough.
Older Americans get more relief from the noise. While just 13% of Americans overall say they rarely or never think about their finances, that jumps to 27% of Boomers, another sign that the mental weight of money falls hardest on younger generations still establishing themselves.
When stress hits, Gen Z spends
Nearly half of Gen Z (49%) admit they sometimes spend money to cope with stress or lift their mood, compared with 34% of Americans overall, and 16% of Gen Z do so often.
That impulse also plays out in specific behaviors. Nearly three in 10 Gen Z (29%) say they’ve made an impulse purchase to feel better in the past year. When they need to unwind, they’re also more likely than others to go out for drinks, dinner or entertainment (23%), spend on self-care like a massage or nails (20%) or turn to retail therapy (14%).
Across all generations, the most common responses to money stress are more practical: 56% cut back on spending and 35% make a budget or plan. However, avoidance is common too. Four in 10 Gen Z and millennials (40%) say they avoid checking their finances, whether their bank balance, bills or accounts, because they’re worried about what they’ll see.
Younger Americans are more willing to talk about money
Plenty of people open up about their money worries, primarily turning to a spouse or partner (39%), a family member (31%) or a friend (22%). Gen Z is especially likely to lean on family (37%) and friends (29%).
Still, a meaningful share stays quiet, especially older adults. Roughly one in five people (21%) say they don’t talk to anyone about their money worries. Boomers are the most likely to keep those concerns to themselves (36%), compared with just 13% of Gen Z and millennials.
Among those who don’t open up, a third (33%) don’t want to burden other people, 32% feel money is too personal to discuss, and a quarter (25%) feel embarrassed or ashamed, including 36% of millennials.
The money secrets Americans keep from their partners
The reluctance to talk openly about money shows up inside relationships, too. Nearly a quarter of Americans (24%) say they’ve kept a financial secret from a partner – something often referred to as financial infidelity – rising to 32% of millennials.
Here are the financial secrets people have kept from their partners:
| Credit card debt or other debt | 39%; 46% of millennials |
| An unpaid or overdue bill | 28% |
| How much they have saved | 25% |
| A large purchase | 22%; 27% of Gen Z |
| Their income or how much money they earned | 19%; 25% of Gen Z |
| A bank, savings, or investment account their spouse didn’t know about | 17% |
| Money they borrowed from family or friends | 17%; 24% of Gen X |
| Money they gave or lent to family or friends | 16%; 21% of boomers |
| A financial loss or investment loss | 16%; 24% of millennials |
| Gambling or betting-related spending or losses | 16%; 22% of Gen X |
| A major financial decision they made without telling them | 16% |
Americans want help making money feel more manageable
Many Americans believe the right support could make a difference. More than half (56%) say the right tools and guidance would make managing their finances feel a lot less stressful, rising to 68% of Gen Z and 63% of millennials.
What people say would help most comes down to greater visibility, a sense of progress and more confidence in their financial decisions. More than a quarter (27%) want progress tracking that shows their situation is improving, 26% want to be able to see their full financial picture in one place and 25% want greater confidence that they’re making the most of their credit cards and money, rising to 34% of Gen Z.
When finances feel on track, life does too
If financial stress drags down mental wellbeing, the reverse is just as true. Eight in 10 Americans (80%) say that when their finances are in order, they feel in control of the rest of their life.
And 69% say improving their finances would have the biggest impact on their overall happiness, a sentiment that’s even stronger among younger adults, including 75% of Gen Z and 77% of millennials.
“Money and mental health are deeply connected, and for a lot of people, financial stress touches nearly every part of life, from how well they sleep to how present they can be with the people they love,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “The flip side is that feeling more in control of your money gives you a greater sense of control overall. And that doesn’t mean having every aspect of your finances figured out. You don’t have to solve everything at once. Even just knowing where you stand can make your finances feel less overwhelming. Getting a clear view with a tool like Credit Karma can be a good first step toward feeling more confident and in control.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between August 31, 2026 and September 2, 2026, among 1,006 American adults.