Inflation is when prices go up. When inflation goes up, it can make it more stressful for you to afford the basics like food, housing, and healthcare.
According to results from the American Psychiatric Association (APA) Healthy Minds Monthly Poll, nearly 90{1293bd4ef25ca86a622f6d9512ec3310653175851a143bae989351f0db04aea4} of residents in the United States report feeling anxious or very anxious about inflation, an increase of 8 percentage points from the previous month.
With inflation at a 40-year high, the APA poll also revealed that over 50{1293bd4ef25ca86a622f6d9512ec3310653175851a143bae989351f0db04aea4} of Americans are worried about a potential loss of income.
Your mental health can be impacted when:
- You experience financial stress if you cannot pay your bills or manage your spending in a way that helps you stay afloat financially.
- You have to make difficult decisions about your budgets and spending.
- You experience job stress since inflation can lead to job insecurity and long working hours to maintain income levels.
You must understand the mental health implications of inflation and how it can affect you emotionally and mentally. With an awareness of the mental health risks associated with inflation, you can take steps to proactively manage mental well-being.
Stress From Economic Change
“Financial stress can create chronic anxiety, exhaustion, strained relationships with partners, and prevent a person from getting housing, education, or healthcare.”— KARA NASSOUR, LPC
Economic change can be a stressful and challenging experience, especially when it comes to inflation.
When prices rise, mental health can suffer as people worry about how they will afford the basics, like food, housing, and healthcare.
In this blog post, we’ll explore how inflation affects mental health, and the steps individuals can take to protect their mental well-being during economic change.
How Inflation Impacts Mental Health
“What inflation does is it takes away your sense of security, like you’re not sure whether you can pay for things in the future, you’re not really sure about how things are going to be,” says Paula Allen, senior vice president of research and total wellbeing at LifeWorks. “Even if you are financially stable now, there’s this concern that you might not be in the future.”
Inflation can have a serious mental health impact on individuals as it causes prices to rise, making paying for basic necessities more expensive.
The “Impact of Inflation on Mental Health” report commissioned by FinMasters, found that:
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67{1293bd4ef25ca86a622f6d9512ec3310653175851a143bae989351f0db04aea4} of the respondents listed paying bills as the leading source of stress.
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86{1293bd4ef25ca86a622f6d9512ec3310653175851a143bae989351f0db04aea4} were worried about being able to afford food.
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24{1293bd4ef25ca86a622f6d9512ec3310653175851a143bae989351f0db04aea4} worried about being able to afford fuel for their car.
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76{1293bd4ef25ca86a622f6d9512ec3310653175851a143bae989351f0db04aea4} were concerned about housing costs.
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7{1293bd4ef25ca86a622f6d9512ec3310653175851a143bae989351f0db04aea4} cited credit card debt as a cause for anxiety.
Harvard Business Review recently cited:
“Health care and health behaviors factor into peoples’ lives in different ways, but it’s clear that financial stress and emotional states have a direct impact on people’s health.”
“If a person is constantly feeling stressed about finances and struggling to pay for necessities, they’re likely to have less energy to focus on making healthy lifestyle choices or accessing preventive medicine, thus creating a domino effect on other important aspects of their lives.”
For those living paycheck-to-paycheck, inflation can cause even greater financial stress as their income will not be able to keep up with the increasing costs. Additionally, mental health concerns can arise as people worry about their job security and future economic prospects.
Mental Health Resources for Coping with Inflation
Fortunately, mental health resources are available to help individuals cope with the mental health impact of inflation.
Talking to a therapist can provide support and strategies for managing mental health during economic change. Additionally, many online resources provide information on mental well-being and ways to protect mental health during inflation.
If you would like to learn more about mental health and inflation, here are some additional resources that could be useful.
Creating a Budget Plan During Economic Change
Creating a budget plan is vital in protecting mental health during economic change.
A clear understanding of income and expenses can help you manage your finances more effectively during inflationary times.
Additionally, budgeting can help you put money aside for emergency savings so you are better prepared to handle unexpected costs.
Staying Informed About the Economy and Inflation
Trying to stay informed about the economy and inflation can provide individuals with greater insight into mental health challenges that may arise due to economic change.
Understanding how factors such as unemployment, wages, taxes, and spending affect mental well-being can be beneficial in making proactive steps to protect mental health.
Taking Action to Protect Mental Well-being During Periods of High Inflation
Taking action can help you protect your mental well-being during periods of high inflation.
Find a therapist to help you properly deal with the despair, distress, and anxiety associated with the uncertainty of these inflationary times.
Practicing good mental health habits such as getting enough sleep, staying connected with friends and family, and engaging in activities that bring joy is essential for mental health.
Additionally, setting financial goals and developing a plan for achieving them can give you the confidence to manage your finances during economic change.
Inflationary periods can be complex mental health challenges, but there are steps that you can take to protect their mental well-being.
Actions You Can Take Today
- Talk to a mental health professional
- Create a budget plan
- Stay informed about the economy
- Take action.
Thanks for reading! We hope this blog post has provided helpful information on how inflation affects mental health and what steps individuals can take to protect their mental well-being during periods of economic change. Stay tuned for more posts about mental health and economics!
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