According to a recent study, 90% of Americans report that their
stress level regarding money has remained neutral or even increased despite the
recent improvement in the economy.
Also, 75% report having been stressed out about their financial
situation within the last month. Top
sources of stress regarding money include unexpected expenses, saving for
retirement, and paying for essential things such as food and housing. The study suggests that a household
income of $50,000 seems to be the threshold for how much stress one will
experience, as the gap between the stress levels of those below and above $50,000
is increasing. The article also
suggests that stress over money is contributing to unhealthy lifestyles, such
as increased intake of tobacco and alcohol. I can see why people are stressing over retirement
since no one can rely on receiving much social security in the future, but why hasn’t
improvement in the economy decreased some of the stress across America?
http://money.cnn.com/2015/02/04/pf/money-stress/index.html?iid=SF_PF_River
8 comments:
I think the concern over money is justified. Current economy, although improving slightly in the US, is still very unstable and unpredictable. Oil price, Japan being in depression, uneasiness in the Middle East and the stagnation in the Eurozone all can have tremendous spillover effect to the US economy. People have the right to be skeptical, given that 2008 is just like yesterday, and its effect is still lingering.
I agree with Duc. It does seem that USA is one of the only few countries doing well and people are not sure if USA will be able to sustain its economy. The interest rates are low but the consumer confidence is not high. The American Psychological Association survey found that, people living in lower income households, parents of children under 18, Millennials and Gen Xers are among the most likely to report high levels of money stress.
The economy has been improving, but I think it will have to continue improving before people become more confident again about their finances. The last couple months have been encouraging, but considering how long it took for the economy to recover, it doesn't seem surprising that people are still stressed about finances.
I agree with the above statements. I think that even though the economy is slowly making advancements, it is the uncertainty of the future that is allowing Americans to still be concerned in spending money and not saving. They are afraid and have anxiety, as talked about in my article, and that even with low interest rates we are still saving a substantial amount. Retirement is also an issue because of the social security situation and we are being forced to save even more so that we have money later when we need it.
I agree with Brian. I think a long period of financial stability is the only solution to improving consumer confidence. Too many Americans have lost too much in recent years to have true faith in the economic stability we are currently boasting. This stability needs to persist for a few more years before consumer confidence truly returns.
This past recession lasted for a long time, and consumer sentiment remained skeptical even after the US came out of the recession. I don't know if people will ever be able to let these fears go away due to the cyclic nature of the economy. I believe that it is important to consider the people that are worried about the economy. They are generally below the $50,000 threshold that was laid out in the article. One can presume that they are more at risk to downswings than the other group of Americans. Hence, this becomes a perpetual problem, regardless of economic performance.
One also has to realize how much importance people give to money. I would say it is a natural effect of the capitalist economic system that people regard their financial situation to be the defining characteristic of their lifestyles.
Living in today's economy has caused people around the country to suffer severe hardships. seeing that the amount of income a household receives is correlated with stress levels doesn't surprise me. the working class is always focused on how much they are making and how much they are able to spend while maintaining a reasonable life style. I think stress will always be relevant when it comes to the employed members of the labor force. Although this is the case, I am confident that the economy will experience a change for the better and less people around the country will stress about income.
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