Jason Furman, who chaired the National Economic Council during the Obama administration, said there was nothing structural about inflation at Barron’s Roundtable.
Approximately half of U.S. adults struggle with their mental health due to their financial situation.
According to Bankrate’s latest Money and Mental Health Survey, 47% of adults say money concerns have at least occasionally caused anxiety, stress, worry, lack of sleep, depression or other effects. are doing.
About 65% of respondents say their biggest concern is inflation and rising prices, and nearly 60% say they feel stressed about paying everyday expenses like groceries and utilities. According to the survey, about 56% of people are worried about having enough emergency savings, and 47% are most concerned about having debt.
Latest New York Fed survey shows Americans expect high inflation to continue
Almost half of Americans admit that their economic situation is having a negative impact on their mental health. (license/image)
“That’s why this is such an important tension,” Ted Rothman, senior industry analyst at Bankrate, told FOX Business. “I’m working on it,” he said. “They’re worried about rent, groceries and other short-term bills.”
According to the report, more than 60% of households were living paycheck to paycheck as of November. Data from LendingClub.
The value of $100 has fallen significantly in recent years, reducing purchasing power due to inflation.
Meanwhile, the January Bank Rates report highlighted that more than a third of U.S. consumers have more credit card debt than emergency savings.
Mr. Rothman blamed continued inflation, Although this has fallen significantly from its peak of 9.1%, progress since summer has remained roughly the same.
Rothman said the data underscores that “many people are truly at risk.”
especially, ”People don’t feel good because they swallow up all the gains they made through inflation,” he added.
More than a third of U.S. consumers have more credit card debt than emergency savings. (Reuters/Brian Snyder/File Photo/Reuters Photo)
To make matters worse, Americans are even bracing for high inflation for years to come, according to a major New York Fed survey released Monday.
For Grant Gallagher, head of benefits at Affinity Federal Credit Union, he told FOX Business the stress could be even more immense for a family’s primary financial provider.
“They have the emotional burden of paying for their necessities, and when they can’t or struggle to pay, they feel like failures,” Gallagher said, adding that much of this stress can be attributed to inflation. He also said that.
Even if someone can afford and are able to make the payments, even if they are related to student loans or credit cards, “decades of loans, such as student loans or mortgages, can be overlooked.” “The lack of visible progress can be discouraging,” he added.
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Not only that, but rising prices for everyday essentials are putting ever-increasing pressure to earn high incomes and maintain a certain lifestyle, which in itself can lead to chronic stress, burnout, and It can lead to anxiety and even feelings of inadequacy, Gallagher said.
“What was once considered a good income is now what you need to buy essentials,” he said, citing recent information. GOBankingRates report, They found that, on average, a family of four needs a net income of more than $80,000 in 22 states to cover the average cost of necessities.
FOX Business’ Megan Henney contributed to this report.
