Money on The Brain

Money Stress and Mental Health

This article first appeared in the May 2021 UHCA News and was submitted by UH resident Mir the Friendly Neighbor

Money and mental health are two pivotal forces motivating the movements of society. The American Psychological Association study, Stress in America: One Year Later, A New Wave of Pandemic Health Concerns cited, 47% of U.S. adults are reporting increase stress levels contributed to life disturbances within income, weight gain, health care access, essential career demands, virtual learning, sleep hygiene, future planning, and personal mental health care. Adults are restricted in their usual coping behaviors to handle these life disturbances. The pandemic has disrupted normal daily routines that helped distract one’s self from financial insecurity.

Residents in San Diego have been directly impacted by the disparities between earrings and the cost of living. In order to live comfortably in San Diego based on the 50/30/20 rule of 50% - necessities, 30% - fun, and 20% - savings; residents’ annual income needed for home owners = $137,826, and renters = $120,786. The median income of San Diego residents in zip code 92103 is, $65,793, from the calculations of Sperlings Best Places to Live. The average 1-bedroom apartment rent in 92103, is $1,580. The Rent Report, February 2021: The State of the Rental Market projects the national rent of $1, 588 for 1-bedroom apartment. Optimistically, a 1-bedroom apartment in 92103, will cost 28.8% of an income of $65,793, which is slightly lower housing cost expectation of 30%. Yet, the housing cost burdened reputation of California was present pre-COVID-19.

California Future of Work Commission: A New Social Compact for Work and Workers, March 2021 report highlighted inequalities between housing prices and income: 54% Californians pay more than 30% of their income toward shelter, and 28% of households pay more than 50%. The report mentioned the increase of unemployment from historic low of 3.9% in Feb 2020; 16.4% in April 2020; 8.2% in Nov 2020. Moreover, the report found wages have decreased in the lower 10% class, stagnant amongst middle class, and increased 44% in the top 10% of high wage workers. Furthermore, middle-wage jobs disappearance has impacted low-wage mobility of advancement. Money worries deteriorates mental health functioning when professional and economical growth are limited. Capital One and The Decision Lab study reflected the impacts of financial stress on mental health: 77% participants felt anxious regarding financial situation; 58% believed finances controlled their lives; 43% had feelings of fatigue; 42% expressed difficulty concentrating at work, and 41% had sleep interferences.

If you are unable to SECURE (pay bills); SAVE (create emergency fund); SPEND (buy needs/wants); SHARE (donate/gifts), you are living check-to-check. Most full-time workers are unable to do all four with their monthly income, and suffer in silence making monthly sacrifices to thrive. The pandemic stimulus package of delayed repayment of student loans and direct payments allowed many Americans to start saving, budgeting, and paying debts. Financial insecurities can decrease with small changes within thinking and debt prioritization.

Mental Health Month is observed in May. Spread awareness by sharing these resources to promote financial and mental resiliency: Mental Health Month | Mental Health America (mhanational.org); Big-Picture Thinking Leads to the Right Money Mindset | Capital One.

References:

Stress in America™: One Year Later, A New Wave of Pandemic Health Concerns (apa.org)

CA Future Of Work Report [2040].pdf:

How Much You Need To Live Comfortably in 50 Major US Cities (yahoo.com)

Rent Report, February 2021: The State of the Rental Market | ApartmentGuide.com

Big-Picture Thinking Leads to the Right Money Mindset | Capital One

Mental Health By the Numbers | NAMI: National Alliance on Mental Illness

More Resources:

Free Paycheck Calculator: Hourly & Salary - SmartAsset *

How Money Affects Your Mental Health and How-To-Help It

4 Lessons I Learned From 'The Psychology of Money' by Morgan Housel (businessinsider.com)