Tax Time Stress

Only about a week and a half remains until Tax Day.  A time of universal stress.

Will I have to pay?

Do I have all the documents I need?

Will I get enough of a refund to pay off my debts?

Will I be able to get my return filed before the deadline?

These are some of the more immediate stressors around this time of year.  But tax season can also bring up larger financial worries that plague a huge percentage of Americans.

Do I have enough saved for retirement?

Am I spending too much each year?

Are my partner and I on the same page in terms of financial goals?

A few years ago I spoke with Live Science about how to manage some of the stressors of tax time – and financial stress in general. Here’s a bit of the article:

Here’s the full article:

Stress, Age and Money: Younger Americans Most Stressed About Finances

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The American Psychological Association’s annual Stress in America survey was released today.

The good news: Overall, Americans report experiencing less stress

The bad news: Younger Americans and parents tend to report more stress – particularly about money – than other Americans

Now, this is no great surprise.  Young adulthood is a super-expensive time in life.  First cars, first homes, student loans, babies: all these things combined with relatively low, early-career salaries combine to make money tight in a lot of young households.  What is surprising is that the APA survey found that younger, stressed out Americans tend to manage their stress in unhealthy ways when compared to other groups.  This might mean drinking too much alcohol or engaging in sedentary activities for too much time (surfing the internet or watching TV).

The real bummer is that we know chronic, high levels of stress are no good for our health in the long term.  In fact, high levels of stress can lead to depression, cardiovascular disease, and all sorts of other things.

Check out the complete results to learn more about APA’s Stress in America survey.


Managing Chronic Economic Stress

In yesterday’s post, I talked about the difference between acute and chronic economic stress.  I concluded that most of us are squarely in the “chronic stress” category when it comes to our financial lives.

One of the things that I mentioned were the dangers of feeling hopeless and helpless in terms of doing anything to change one’s circumstances.  It makes sense then, that Tip #1 for managing chronic economic stress is to DO SOMETHING.  Or at the very least, hitch yourself to someone else who is doing something.  Working on a political campaign you believe in, volunteering for an organization helping people even more hard hit than you, taking a class on managing personal finance – doing something always feels better than doing nothing. Not only that, it can help you maintain your mental health by warding off those hopeless/helpless feelings.

Need a jumpstart?  Check out Starbucks’ new initiative (which starts today, how perfect is that?):

Starbucks is donating five million dollars to seed a fund at the Opportunity Finance Network, which in turn will provide capital grants to select Community Development Financial Institutions (CDFIs). The CDFIs will provide loans to underserved community businesses, including: small business loans, community center financing, housing project financing and microfinance.


Stay tuned for more tips as the week goes on.

Chronic Economic Stress

Several years ago when the economy went downhill (yes, an understatement, I know) psychologists like me were getting lots of questions about how to cope with the stress.  I was interviewed by the Wall Street Journal, National Public Radio, and the Philadelphia Inquirer – and every reporter had the same basic question: “How do we cope with financial strain and keep our mental health at the same time?”  Some of the tips I often gave were things like:

  • Turn off the TV/radio/computer so as not to be bombarded by the bad news
  • Take action by making small changes in your financial life
  • Don’t forget to keep up the healthy stress management strategies you already have in place (i.e., walking, talking with friends, going to church)

But here we are 3+ years down the road and things don’t seem to have gotten much better.  Sure the market may be up and interest rates may be down, but I still hear stories of layoffs, prolonged unemployment, and perpetual under-employment.  I’m not sure what the exact definition of “chronic” is when it comes to stress, but I am certain we are there.  The financial stressors we are facing have gone from acute to chronic – the difference may seem like semantics, but really it’s a whole different ballgame.

What makes chronic stress different than acute stress, particularly in regards to our economic lives?

Emotional health.  Most of us have the emotional and psychological resources to cope with stress on a short term basis (meaning several weeks to several months).  Prior to the onset of the acute stressor we were probably healthy, rested, and had at least one or two good coping strategies in place.  However, after an extended period of time (3 years, for example)  the chronic exposure to stress starts to take its toll on our emotional health.  What was once a few nights of poor sleep has become insomnia.  We’ve stopped engaging in healthy coping strategies (reading, praying, yoga) and taken on “easier,” less healthy habits (drinking too much, eating too little, watching more pornography).   Psychological health is a high maintenance thing – when we don’t care for it, it can deteriorate pretty quickly.  Increased anxiety, worsening mood, irritability – these can all be signs that our mental health is being negatively affected by chronic stress.

Physical health.  Did you know that chronic stress affects every system of the body?  Stomachaches, headaches, muscular pain, cardiovascular disease – chronic stress can play a part in all of these conditions.  Still not convinced?  Take a look at the American Psychological Association’s super cool mind/body health interactive tool and see for yourself just how destructive chronic stress can be.

Hopelessness/helplessness.  Researchers know that one of the most psychologically-damaging emotional states is when one feels hopeless and/or helpless about their situation in life.  It is no good when we feel as if we have no agency – or say – in our lives.  Unfortunately, that is exactly the feeling that this “financial downturn” has produced in many of us.  It’s not infrequent for me to hear people saying things like: “But I saved, and went to school, and spent money responsibly – how can it be that I am still broke and unemployed when I did all the right things?” or “It doesn’t seem to matter what I do or try, I can’t catch a break financially.”  I think it’s pretty obvious to see how this sort of thinking can be a precursor to depression.

A little bit of stress is OK, 3+ years of daily worry about money and employment can take its toll.  Check in tomorrow for some tips of how to manage chronic financial stress.