Let’s talk about it: Financial stress is real
Sometimes finances can get a bit stressful. Expenses tend to add up, whether it’s sports equipment, day care, or the weekly groceries. And sometimes the simple act of opening your online bank account page can cause a bit of anxiety, not to mention sweaty palms.
You’re not alone. According to a recent survey by Forbes Advisor, financial stress wreaks havoc on Americans’ mental health. In fact, 48% of Americans report sleep problems, 40% are highly anxious, and 34% experience depression as a result of their debt. Financial stress quietly affects everything, from sleep to work performance to parenting.
In this article, we’ll walk through the impact of financial stress on your family’s overall health, the most common financial challenges most parents face, and where you can turn for real help. But first, let’s talk about financial wellness and why you should aim to attain it.
How financial wellness benefits you
Being “financially well,” isn’t about being wealthy. It’s about feeling in control of your finances. When you’re confident about how you’re doing, you can make better decisions about your money.
Ideally, financial wellness means you have a plan for paying off debt, managing your budget, and reaching goals. And you can even weather unexpected financial emergencies with savings. It’s what most of us want – to live within our means and enjoy peace of mind. Unfortunately, many Americans don’t have this type of security, and it’s affecting their health.
The cost of financial stress on your health (and your family’s)
When you’re anxious about finances, it impacts your body. Financial stress can lead to frequent headaches and exhaustion, which impacts your parenting. Your mind may even be elsewhere. For example, rather than helping your son with his homework, you’re thinking about paying the bills or picking up an extra shift at work.
The cost of financial stress is huge. It can lead to:
- Chronic health conditions, including heart disease and diabetes.
- Poor sleep and performance on the job.
- Getting sick from the common cold and other viruses.
- Preventable trips to the emergency room or urgent care center.
When you’re stressed about finances, you’re also more likely to:
- Make impulse purchases. Stress impairs decision-making abilities, which makes retail therapy more appealing.
- Miss bill payments. If you’re already struggling, you might miss payments and accrue further debt.
- Skip saving for the future. When you’re just getting by, it’s nearly impossible to save for retirement or build an emergency fund. But without a nest egg, you’re adding even more stress to your plate.
If you’re like most of us, you’re just doing your best. Maybe you’re a stay-at-home mom and juggling everything on a single or unpredictable income. Maybe you’re navigating the rising costs of everything – from child care to groceries to rent. Or maybe you’re trying to save while paying down debt (a gigantic feat!).
Regardless of what you’re going through, your mental health matters, and it impacts how you show up for your family. Fortunately, just a few small changes can create financial wellness and offer a big boost to your happiness.
Ways to get back on track
Master your money (a little at a time)
There’s no need to overwhelm yourself. Just a little financial literacy can go a long way. Take a few minutes each day to learn something new about finances. Consider listening to podcasts, reading blogs, or following someone helpful on social media. Better yet, talk with a professional financial representative near you. Learn how to create a realistic budget, the basics of saving and investing, and how to build credit. Best of all, you’ll lead by example and show your kids how to manage their money too.
If you haven’t already, roll up your sleeves and start paying a part in your family’s finances. Leaving all the money stuff to a spouse or partner might seem easier in the moment, but it can actually crank up your stress in the long run. It’s your family too, and being in the loop with the finances gives you power, peace of mind, and way more confidence. When you know where the money’s going, what’s coming in, and how it all works, you’re not left guessing – or worrying – when something unexpected pops up.
Next, let’s talk about how you can be a powerful money manager in your family …
Use budgeting tools that make sense for busy moms
Gone are the days of balancing the checkbook and tracking expenses on paper. Most of us need quick and easy digital budgeting solutions. If you don’t have a budget yet, try creating one using an online tool or app. Many of them connect directly to your bank accounts, so you can automatically track your spending, when bills are due, and even how your investments are doing. Some software solutions you have to pay for, while others are free. Remember, a tool doesn’t have to be expensive to help you get your finances organized.
Cut out the “extras”
As you’re looking at your budget, ask yourself, “Where can I cut back on spending?” Chances are, you don’t need that latte every single day. Can you splurge just on Fridays? You might save hundreds of dollars a year. Can you try thrifting? What about using digital coupons at the grocery store? There are tons of ways you can save – and every little bit adds up to more in your wallet. Here’s a pro tip. Before buying something, ask yourself if you really need it now. If you do, can you buy it used or borrow it? Pausing before making purchases can help you cut back and save over time.
Build an emergency fund
Saving just $10 a day can build a healthy emergency fund quickly. If you can, set aside money in your budget to cover three to six months of housing payments, groceries and other bills. Just knowing you have a fund if you lose your job or need to make a large purchase is a huge stress reliever. (For example, if your car’s transmission dies or you need a new water heater, you’ll be okay!)
Pay toward your debts
There’s nothing worse than looming debt. Whether it’s student loans, a mortgage, or your credit card, paying off debt can make you feel so much better. To get rid of debt, pay a little toward it every month – and make it a priority. If it helps, set up automatic payments so you aren’t tempted to skip a payment.
Remember, debt is common. Try not to judge yourself for your past financial decisions. You have the power to move forward, pay it off, and enjoy financial freedom. Just take it one day at a time.
Mama, you’ve got this
Creating financial wellness gives you more control and confidence in every part of your life. It’s also critical for your mental health. When you’re less stressed, you have more energy for loved ones.
As a mom, you’re already doing so much. Fortunately, you can build financial wellness by taking small steps every week. Learn something new about money. Build a realistic budget. Or talk to a Modern Woodman representative who can offer guidance. Connecting with someone from our team can give you the encouragement and peace you’ve been longing for.
Above all, remember you can be in control of your finances. Now’s a great time to start.