Financial Wellness in United States

Effects of Financial Wellness Stress on Health and Personal Life

Health effects

• Sleep problems (insomnia, fragmented sleep) leading to fatigue and impaired thinking.
• Chronic stress responses (higher blood pressure, headaches, digestive issues) increasing long-term cardiovascular risk.
• Anxiety, rumination, and depressive symptoms; weaker immune functioning and more frequent illnesses.

Personal life effects

• Increased relationship tension and conflict due to ongoing money worries.
• Reduced quality time with loved ones and social withdrawal; higher caregiving/parenting stress.
• Coping behaviors that can harm health (substance use, overeating) and less self-care.

Workplace impact

• D decreased concentration, productivity, and decision-making; more errors.
• Higher absenteeism or presenteeism and lower engagement.
• Strained collaboration and communication with colleagues.

Coping strategies

• Use financial wellness resources (employer programs, financial coaching, October digital group sessions) to reduce uncertainty.
• Build a simple plan: create a realistic budget, prioritize debt, and establish a small emergency fund.
• Supportive routines: prioritize sleep, regular physical activity, and brief mindfulness or stress-reduction practices. If stress is overwhelming, consider speaking with HR/EAP or a mental health professional.

Impact of high financial wellness stress on the US economy

• Consumption and growth: households under debt load cut discretionary spending, dampening GDP growth and overall demand.
• Labor productivity and stability: more absenteeism and presenteeism, higher burnout and turnover, and increased healthcare costs reduce productivity.
• Financial system risk: elevated defaults and debt distress can tighten credit conditions and add volatility to financial markets.
• Housing and wealth effects: higher mortgage delinquencies and lower home equity slow housing activity and related sectors.
• Inequality and long-term human capital: financial stress disproportionately affects lower-income workers, potentially harming education/training investments and long-run growth.
• Public finances and policy: greater demand for safety-net spending and healthcare support can strain government budgets and influence macro policy responses.

Workplace considerations and resources

• Address with financial wellness programs and accessible mental health support to reduce stigma and encourage help-seeking.
• Provide confidential counseling, stress-management training, and flexible work options to mitigate productivity losses.
• Consider partnerships with digital mental health platforms (e.g., October) for group sessions, assessments, and content that cover stress, resilience, and related mental health topics.

Policies to reduce Financial Wellness stress

• Strengthen social safety nets and automatic stabilizers

  • Expand unemployment insurance, housing subsidies, and healthcare subsidies; index benefits to cost of living.

• Reduce debt burdens and medical costs

  • Expand student loan relief and income-driven repayment; cap medical debt; move toward universal or lower-cost healthcare to curb out-of-pocket expenses.

• Expand cash supports and tax credits

  • Increase refundable credits like the EITC and Child Tax Credit; automate enrollment; ensure coverage for gig/contract workers.

• Increase affordable housing and healthcare access

  • Invest in affordable housing supply and rent subsidies; reduce healthcare costs; expand access to community health centers.

• Integrate financial literacy and mental health support

  • Promote lifelong financial education; fund free financial coaching; provide scalable mental health resources for financial stress (e.g., workplace programs and digital group sessions through platforms like October).

• Establish a proactive financial wellness program: provide 1-on-1 financial coaching, budgeting tools, debt management resources, emergency savings, and retirement planning. Consider using October for digital group sessions and content that cover stress resilience and financial planning.

• Improve compensation transparency and benefits access: ensure clear pay schedules, easy access to pay advances, and robust benefits (401(k), HSAs/FSAs). Provide programs like employer-assisted loan repayment to reduce money-related anxiety.

• Support debt reduction and savings with employer contributions: offer student loan repayment matching or contributions, and automatic payroll deductions to an emergency or retirement fund.

• Normalize and support financial stress with mental health resources: offer confidential EAP access, paid time for financial planning or therapy, and manager training to recognize and respond to financial stress.

• Invest in financial literacy education and quick self-help tools: provide concise workshops and resources on budgeting, credit scores, and taxes; keep content accessible and updated; conduct regular, optional check-ins to tailor offerings.