Americans’ money worries are stacking up as tariffs, inflation and a weakening jobs outlook take an increasing toll. Even stocks hitting a series of record highs lately hasn’t been enough to shake the financial jitters, with memories of the market’s spring swoon still relatively fresh.
Four out of five Americans in a survey by Discover this summer said they feel anxiety about their finances — an increase of nine percentage points since 2021 — and one-third characterized their stress as moderate to severe. The findings echo recent studies by Northwestern Mutual and Motley Fool, which found that more than half of Americans now worry about their finances at least three times a week.
Overall sentiment in the U.S. continues to deteriorate, with major gauges of consumer confidence falling in August. Topping the list of concerns: high inflation and everyday expenses, followed by job fears and worries about a recession.
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“The change in trade policies and uncertainty over prices — most of our clients are aware of that, and it puts them on edge,” says certified financial planner Eric Walters, managing partner at Summit Hill Wealth Management in Greenwood Village, Colo.
The concerns are not unfounded. Several measures of inflation have been inching higher recently, and many retailers and consumer goods manufacturers are warning that prices will continue to rise due to tariffs. The latest analysis from the Budget Lab at Yale University suggests tariffs could add 1.8% to price increases this year, the equivalent of an average income loss of $2,400 per U.S. household. At the same time, employers are becoming reluctant to hire, creating another economic headwind.
What makes experts anxious, though, is that many people may make impulsive and possibly damaging money decisions to ease their worries, such as moving most of their retirement savings to cash or loading up on gold, cryptocurrency and other high-risk alternative assets.
“Everybody wants to get back into the driver’s seat of their lives financially, so they look at what they can control,” says CFP Bob Wolfe, founder of HealthyFP in Conshohocken, Pa.
These steps can help you tackle money worries in a healthy way.
Zero in on your biggest concern
Pin down what disquiets you the most, then work on a specific plan to address that worry. If high prices top your list, for instance, you might start by reviewing your budget to find ways to lower expenses, says Juan HernandezAriano, a CFP and director of WealthCreate in Houston. For example, you might be able to take advantage of available discounts, cancel little-used streaming services and subscriptions, or negotiate a lower interest rate on debt.
If you’re retired and inflation is fueling fears you could outlive your savings, consider shifting an additional three to six months’ worth of expenses from your investment portfolio to a lower-risk, easily accessible money market account or high-yield savings account that you can dip into as needed. That way, you’ll avoid selling stocks at a low if the market drops sharply again, HernandezAriano says. Temporarily lowering your annual portfolio withdrawals — say, from 4% to 3% — can help as well.
Naming your next three moves if your worst fears materialize is also a good exercise, HernandezAriano says. If you’re worried about losing your job, for example, you might assess your cash reserves to make sure you have enough on hand to meet your immediate bills, plan to file for unemployment benefits, and figure out how you’d maintain health insurance.
“The anxiety is reduced simply because you start flushing out that uncertainty,” HernandezAriano says.
Avoid habits that fuel your anxiety
Keeping up with the 24/7 news cycle and reading constant social media posts about the economy can trigger your brain to release “a burst of dopamine, which feels good and trains the brain to seek out more news,” says CFP and therapist Joy Slabaugh, founder of the Wealth Alignment Institute. But doing that ultimately feeds your anxiety, so “set up safeguards to turn that off,” she advises. Maybe limit your financial news viewing to an hour or less a day or stop following alarmist economic pundits on social media platforms.
Similarly, take a break from looking at your portfolio balances. “Those who check their investments frequently have a greater likelihood of seeing the inevitable short-term ups and downs,” says Walters, even though over the long term the market typically rises.
Clients who instead rely on quarterly updates have lower stress, Walters says — and research shows they average significantly higher returns on their investments as well.
Get perspective
Accept that some factors are out of your control, says Patrick Huey, a CFP and owner of Victory Independent Planning in Naples, Fla. He likes to offer his clients a reassuring historical perspective: Periodic bear markets and recessions are normal, and so is eventual recovery. “They feel like, okay, this isn’t the first time this has happened,” he says.
Instead of checking your portfolio, review your long-term financial plan, which should account for market ups and downs, recessions, and other setbacks, such as higher-than-average inflation. It also offers a concrete representation of your wealth and goals, how far you’ve come, and where you’re going. “It lowers the stress level,” Walters says. “You feel like there’s a map for your life.”
Allow yourself some grace
Avoid beating yourself up for feeling anxious, says Rick Kahler, a financial adviser and certified financial therapist in Rapid City, S.D. Instead, use the emotion to your benefit. “It’s what we call a trailhead to explore,” Kahler says. “It will lead us to some place that can be really productive.”
There’s also a good chance you’re not the only one dealing with financial jitters. Reaching out to trusted family and friends can help. As Slabaugh notes, “There can be comfort and solidarity in realizing you’re not the only one who feels this way.”
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.