Financial wellness impacts your mental health
Understanding the mental-financial-health connection
The numbers don’t lie: as many as 1 in 5 (or more than 57 million) U.S. adults live with a mental illness.1 42% of U.S. adults say that money negatively impacts their mental health.2 Research suggests that worrying about debt, financial instability or the inability to meet basic needs triggers stress and can increase mental health challenges.2 How you feel about your financial situation can have a profound positive or negative impact on your mental health.
Where financial wellness & mental health intersect
There’s a strong connection between a person’s mental health and their financial wellbeing. Struggling with mental health can negatively affect their financial decision-making. This, in turn, can negatively affect your finances. Which can then cause more stress and anxiety, leading to more mental health struggles. It can be a vicious cycle. In fact, 92% of people experiencing mental health challenges report difficulty in making financial decisions.2
Thankfully, TIAA can help you take control of your financial wellness and feel better about where you are when it comes to spending & debt, managing a budget and saving for retirement.
Steps you can take to improve your financial wellness:
- Learn about budgeting Read our “
How to make a budget ” article to learn key terms and basics to help you understand the value of budgeting when it comes to reducing debt and controlling spending. - Create your own budget
Use our spending plan worksheet to help you lay out your monthly spending and create a budget that can help you get a hand on your finances. - Ask for help If you have questions or want to talk through strategies to help you improve your long-term retirement strategy and how you feel about your journey to retirement,
connect with TIAA .
Financial situations that can negatively affect mental health
% of American household debt
77% of American households3 are currently managing some type of debt and the average unpaid credit card balance4 for Americans was $6,864 for the fourth quarter of 2023.*
The yearly rising cost of living
The average home price in the United States was $495,100 in the second quarter of 2023.6 While the average cost of rent throughout the country is $1,534.7 Food prices rose 6.3% in 2021, then 10.4% in 2022 before settling back to a more manageable 2.7% in 2023 and 2.2% so far in 2024.5
Saving for retirement
Many Americans are struggling to save enough for retirement which can cause stress and discouragement. Younger workers in particular feel unsure about their ability to retire comfortably in the future – with a recent TIAA study showing that more younger Americans (age 25-34) believe they can positively affect climate change and social justice (56%) than those that feel empowered to save for retirement (30%).8 In general, a majority of Americans (55%) are concerned that they will not be able to achieve financial security in retirement.9
You don’t have to go it alone. Connect with us to get help.
When you are ready to make the most of the second half of the year, you can connect with TIAA to check-in on your account, review your strategy and make any investing, allocation or contribution changes that make sense for your retirement journey. There are two ways you can work with TIAA to make this happen. You can get help the way you want it.
Mental health and financial wellness resources
Mental Health America
Founded in 1909, Mental Health America (MHA) is a nonprofit organization in the United States that focuses on promoting mental health, preventing mental illnesses, and supporting the overall wellbeing of those with mental health challenges.
MIT Living Wage Calculator
MIT Living Wage Calculator is a free online tool to help individuals, communities, employers, and others estimate the local wage rate that a full-time worker requires to cover the costs of their family’s basic needs where they live.
National Alliance on Mental Illness
National Alliance on Mental Illness (NAMI) is a nonprofit organization dedicated to providing support, education, and advocacy for individuals and families affected by mental illnesses. Founded in 1979, it is now one of the largest grassroots mental health organizations in the country.
Substance Abuse & Mental Health Services Administration
Substance Abuse and Mental Health Services Administration (SAMHSA) is a U.S. government agency within the Department of Health and Human Services (HHS). Established in 1992, their primary mission is to reduce the impact of substance abuse and mental illness on America's communities.
988 Suicide and Crisis Hotline
988 Suicide and Crisis Hotline is a free, confidential service that provides 24/7 support for those in distress.
Other articles you might find helpful
Advice
In an hour or less, we can review your account and goals for retirement and discuss potential changes that you can make to help meet these goals.
Webinar
We will examine how your mental health leads to financial health and vice versa. When you understand the connection between how you’re doing emotionally and how you’re saving your money, your retirement journey can be easier and more successful.
Mid-year check in
Building your retirement confidence and the connections to retirement fluency.
1
2
3
4
5
6
7
8
9