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Yahoo
4 days ago
- Business
- Yahoo
Survey: More than two-thirds of Americans aren't reviewing their budgets. Here's why you should and how you can save more
Budgeting is the financial equivalent of eating your vegetables. It may seem unpleasant, even grueling, but it's ultimately good for your financial health. Budgeting is also unpopular. Bankrate's latest Money and Mental Health Survey shows that less than one-third (29 percent) of Americans reviewed their budget during a 30-day period between mid-February and mid-March. 'Few people like tracking their spending, and itemizing every dollar spent can be tedious and (time-consuming),' says Stephen Kates, CFP, financial analyst at Bankrate. When it comes to using a system to budget, Kates suggests that the simpler, the better. Here's why making a simple budget, and reviewing it, is worth your time. And here's how to develop one that will work for your financial needs. Bankrate's Money and Mental Health Survey found that Americans with higher levels of education were more likely to have reviewed their budgets. Nearly four in 10 post-graduates (38 percent) and people with a four-year college degree (38 percent) said they reviewed their budget in the 30 days prior to Bankrate's survey, which was conducted in mid-March. This percentage was lower for those with some college or a two-year degree (30 percent). Respondents who have, at best, a high school degree (23 percent), was the group that budgeted the least. Although budgeting is the act of tracking how much money you have, there's also the unpopular task of tracking your spending. According to Bankrate's survey, about one-third of survey respondents (34 percent) tracked their spending between mid-February and mid-March. Saving money doesn't just happen, says Lauren Zangardi Haynes, CFP, CIMA at Spark Financial Advisors. 'Most people do better managing their spending if they don't see a lot of money in their bank account. In other words, if your plan is to transfer what's left in your checking account at the end of the month to savings, you're setting yourself up for failure,' Zangardi Haynes says. Budgeting helps you determine precisely how much you should be saving each month so you can save more. Knowing what you're spending your money on, and how you're spending it, can help you determine how much you need to save to achieve your financial goals. The lesson here: Pay yourself first and pocket it in your savings account. Budgeting need not be a daunting task. It comes down to three things: Directing your direct deposits into different accounts Identify spending limits Being aware of your spending and savings habits Budgeting helps you plan where you want your money to go ahead of time. This helps you to spend your money intentionally, whether it's for helping you get closer to achieving your financial goals or putting your money towards purchasing future goods and services that you value. Zangardi Haynes says one of the underrated benefits of budgeting is the way it can help you shift the way you view yourself. She says frequently when people are focused on budgeting they focus on what they're doing wrong. 'When you build savings into your budget or spending plan, you can start to shift the way you think of yourself from a spender, or someone who doesn't manage money well, to someone who is responsible with money and capable of creating financial security for themselves,' Zangardi Haynes says. On the other hand, not budgeting is akin to getting in your car and just driving to a new place without directions, with the hope of getting to your destination in a new place. Bankrate insight Three great reasons to budget: It can show you where your money will be spent. It can help you change your spending habits. An efficient budget will help you pay yourself first so that you're saving before spending money. Budgeting is a financial activity more people should be doing, Kates says. 'Structure your income and spending in such a way where you understand where the money's going, which is essential, but you don't have to do every little dollar and cents transaction on what you bought for coffee this morning,' Kates says. Creating a simple budget takes just three steps: Determine your income. Make a list of your expenses. Don't forget those recurring monthly debits in your expenses. Set your goal to have cash remaining after subtracting your expenses from your income. This way, you know how much money can be saved and how much money should be applied to other financial goals. Once you determine your budget, consider automating your savings to help you save more – because, for many, it's easy to forget to save. Also, using a budgeting app can automatically aggregate your spending all in one place so you can see where your money is going when the expenses post to your credit card or bank account. Reviewing and following your budget is likely to increase your chances of achieving your financial goals. The unemployment rate in the U.S. held at a relatively low 4.2 percent in May, according to the Bureau of Labor Statistics. Those who are employed should have, or be adding to, an emergency fund that contains three to six months' worth of expenses. You need to start somewhere, so start by budgeting for a small amount from your paycheck to automatically go into a high-yield savings account and the rest into your checking account. This is called split-direct deposit – and it's a great way to start or add to an emergency fund, automatically. Sticking with this plan, and not withdrawing that money, will enable your emergency savings to grow. And in the current interest rate environment, it's easy to find a competitive online-only bank offering a yield that's outpacing inflation. Just make sure the bank is a Federal Deposit Insurance Corp. (FDIC) bank, so you know your money is protected in case of a bank failure, as long as your deposits are within FDIC limits and guidelines. But an emergency fund isn't only meant to replace income due to being unemployed. It also helps you when something you own inevitably breaks or needs to be repaired, such as an automobile or home appliance. Bankrate tip In addition to depositing your emergency savings in a high-yield savings account, consider a federally insured money market account, which combines the features of savings and checking accounts, offering competitive interest rates with greater flexibility than traditional savings accounts. You can't go back in time to your youth to build a big retirement nest egg, but that shouldn't discourage you from starting one now, even if you're a few years away from retirement. Every little bit helps. Budgeting can also help you to stretch your retirement savings, even if you're already retired. While younger people have time on their side for their money to grow, eligible workers ages 50 or older have some perks that their younger counterparts don't. One such perk is how much they can contribute to their retirement plans. This year, those ages 50 and older are able to contribute up to $31,000 to a 401(k), 403(b), 457 or a salary reduction simplified employee pension, or SARSEP, plan. (Eligible people under 50 are limited to $23,500.) And those between the ages of 60-63 are able to contribute an additional $11,250 to the $31,000 cap. Younger workers might have more competing priorities and financial goals, especially if they're earning less. At the very least, try to contribute up to your employer's retirement plan contribution match, especially if you're fortunate enough to work for an employer that does this. Splitting your direct deposit into different savings accounts can help you save for different goals, provided that your employer allows this. For instance, some people might want to have a high-yield savings account for an emergency fund and then another high-yield savings account to save for a new car. Bankrate tools When it comes to your savings goals, don't get stuck doing the math. Use Bankrate's Savings Goal Calculator to help you determine how much you need to help you get closer to achieving your money goals. Reviewing your budget is an important part of maintaining your financial health. Automating your savings and knowing where your money's going can help you get closer to achieving your financial goals. The alternative can prevent you from making improvements to your financial health. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,363 U.S. adults, of whom 1,046 have money concerns that impact their mental health while 1,317 do not. Fieldwork was undertaken between March 19th-21st, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
Yahoo
23-05-2025
- Business
- Yahoo
We're facing a student loan default crisis. This academic research might help
How information is presented can have an outsize impact on your actions. Behavioral scientists at the University of Pennsylvania's Wharton School recently tested a similar theory. They wondered if the right messaging — in the form of a 'nudge,' or reminder — could help struggling student loan borrowers. 'There have been large studies that have shown nudges can work in vaccinations or helping to reduce failure to appear in court,' says Robert Kuan, a third-year PhD student at Wharton who co-authored a January study in partnership with the Biden Administration's Education Department. 'But we didn't really know if it would work for student loan repayment.' It did. Performed in the fall of 2023 (after the COVID-19-caused pause on monthly payments), the study sent various types of emails to federal loan borrowers about their repayment options. Those nudges reduced credit-harming delinquencies by 0.42 percent. That might not seem like a lot, but if the research team had scaled the best-performing nudge to all of the nearly 13 million federal loan borrowers included in the study, they could have helped about 80,000 borrowers nationwide avoid delinquency. The Department of Education resumed debt collection on May 5 for five million federal student loan borrowers who are in default (or more than 360 days delinquent). By their own accounting, the number could grow to 10 million by the summer. Put another way: The $1.6 trillion student loan crisis, which has no apparent end in sight, is looking more and more bleak by the day, particularly for those far behind in repayment. But the Wharton study — 'Behavioral Nudges Prevent Loan Delinquencies at Scale' — may be a glimmer of light. It shows how an Education Department that's well-intentioned and well-equipped to help borrowers along in repayment could make a small but significant dent in the country's overwhelming education debt. After all, nudges appear to work even for borrowers who might be most desperate to put their debt in a drawer, close it shut and not think about it. Money and mental health According to Bankrate's Money and Mental Health Survey, 43 percent of U.S. adults say money negatively impacts their mental health, at least occasionally, causing feelings of anxiety, stress, worrisome thoughts, loss of sleep, depression and other effects. 'This is what makes this experiment pretty surprising because we're sending emails to people who have missed a loan payment,' says Kuan. 'So, this is a difficult-to-move population.' And yet, the study showed a positive effect of emailed nudges: reduced delinquency and a higher rate of applying for income-driven repayment (IDR) plans that cap a borrower's monthly dues at a percentage of their discretionary income. (Though a Wharton school professor, Sylvain Catherine, co-authored separate research on whether IDR plans benefit borrowers in the long run.) They held an average of $34,655 in outstanding loans and owed an average of $340 per month. 63% had missed a payment by 60 days or more in the past. 21% had defaulted on a loan. 39% had graduated from college. Some borrowers received the Education Department's standard message after missing a payment. Other borrowers received a behavioral science-designed message encouraging them to apply for an IDR plan — while highlighting their potential savings — and/or to enroll in automatic payments. Some borrowers in the latter group also received a follow-up message (or second nudge). Kuan recognizes that we are in a different position than when the study was performed. Many of the Education Department officials he and his colleagues collaborated with are no longer employed there. Related reading: Biden Administration's top higher ed official: Dismantling the Education Department won't fix how Americans pay for college Plus, borrowers might have been paying more attention to a Biden Administration hell-bent on targeted loan forgiveness and generous repayment options, like the since-scuttled SAVE repayment plan. 'But it still is very promising that by sending people emails, they didn't just ignore them,' says Kuan. 'And we actually got people to take action and put themselves in a better financial position because of that.' In other cases, perhaps where borrowers aren't in or on the verge of delinquency or default, a helpful reminder to be actively engaged in repayment can't hurt. Worst-case scenario: It winds up in the borrower's spam folder. Best case: They save time, money and stress. For example, the Wharton study found that, just by sending a follow-up email, rates of applying to IDR plans rose by 10 percent, says Kuan. 'Not to say that nudges by themselves will change the world, because there's still, with student loans, structural solutions that we can think through, like loan forgiveness and making student loan debt easier to discharge under hardship circumstances,' says Kuan. 'Nudges aren't a replacement for those. But to the extent that we might be politically divided and structural solutions aren't viable, then nudges are a great complement. They're cost-effective, they leverage psychological insights, and they can be implemented at scale.' Kuan's "surprising" study results Percentages beat dollars. Borrowers who received messages of their potential IDR-related savings in percentage form were more likely to take action than peers who received messages about equal-sized savings presented in dollars and cents. Simpler isn't always better. Borrowers who received messages recommending two actions (say, applying for IDR and enrolling in autopay) were more likely to act than borrowers who received a simpler, one-action recommendation. Kuan received Pell Grant funds and borrowed student loans for his undergraduate degree. He credited his first post-college job with helping to aggressively repay education debt. So, he has a 'personal' tie to America's education debt problem, even if he can't directly relate to the most distressed borrowers. 'In our dataset of 13 million borrowers, there are some people with hundreds of thousands of dollars in student loans,' says Kuan. 'And I can only imagine how a person thinks about paying something that they think they can never [fully] repay. So, that is something that I think must be so demoralizing for an individual.' The Wharton study is a low-cost solution for the Education Department to help some of these borrowers. But, as Kuan acknowledged, it's not a universal problem-solver. If you're feeling demoralized, consider that, as bleak as it may seem, there's always a best next choice for your repayment. You might investigate options like those highlighted in the study: IDR can be a way to temporarily or permanently lower your monthly dues to fit within your budget. Autopay is a simple hack for avoiding late payments (and earning an interest-rate reduction in some cases). Other repayment strategies to consider include: Federal loan forgiveness: There are various ways to discharge student loan debt, including Public Service Loan Forgiveness for government and nonprofit workers at eligible employers. Loan repayment assistance: For federal or private loans, seek out aid programs from states, private organizations and even companies that pay off student loans. Repayment pauses: Postponing your payments temporarily via deferment or forbearance for federal loans and via some private lenders can be useful if you need time to rebuild your income or fix your budget — but interest usually accrues during such pauses. Make extra payments: This can cut down the accrual and compounding of student loan interest. One popular method is repaying your student loans biweekly. Student loan refinancing: Creditworthy applicants can seek a lower interest rate by refinancing with a private lender — at the risk of permanently forfeiting federal loan protections. If you're in dire need of help, don't hesitate to ask. You might consider contacting your federal loan servicer, the Education Department's Default Resolution group or working with a certified student loan counselor or lawyer. Consider this a nudge. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
The psychological benefits of paying off debt
Relief is more than a feeling. Dr. Pearl Chiu, a psychology professor at Virginia Tech, notes that while we often think of reward or loss as behavioral drivers, relief can shape our decisions in profound ways. Debt-related stress often creates a 'constant pull on our attention,' making it difficult to focus on other aspects of life, such as work, relationships or personal goals. Becoming debt-free can lift that psychological burden, freeing up cognitive space and emotional energy. Dr. Mark Aoyagi, a professor at the University of Denver's Graduate School of Professional Psychology, explains that while short-term stress can sharpen our focus, chronic stress does the opposite — it drains mental energy and narrows our ability to think clearly. In Bankrate's latest Money and Mental Health Survey , 42 percent of U.S. adults reported that money negatively impacts their mental health. Among those aged 35 to 54, that number jumps to 52 percent. It's no surprise that debt causes stress — but few realize just how deeply it affects mental health. According to experts, paying off debt comes with perks beyond making space in your budget. Since 1976, Bankrate has been the go-to source for personal finance data, publishing average rates on the most popular financial products and tracking the experience of consumers nationwide. Making a plan to pay what you owe — whether that be through debt consolidation or another repayment strategy — can improve your well-being and help reduce your mental and emotional stress. Americans across the nation feel the impact of rising prices and increasing financial strain. Bankrate's Credit Card Debt Survey found roughly one-third of U.S. adults (34 percent) have at least one credit card that carries a balance month-to-month. But the burden of debt extends beyond the numbers. Debt carries a psychological weight that affects mental, emotional and even physical health. The pressure to repay debt can lead to chronic stress, strained relationships and harmful coping behaviors. Once debt is paid off, maintain your emotional well-being by following a budget and paying bills on time and in full each month. Creating a plan to pay down debt can improve your emotional outlook. It gives you a sense of control, shifts you from panic to action and helps reduce harassing creditor calls. High debt levels can lead to increased stress and anxiety, pessimism about the future and a diminished social life. Story Continues 'Being debt-free is really relieving in some ways and can have positive impacts on behavior,' she says. Feeling relief not only signals emotional safety but also encourages more confident, future-oriented choices. By eliminating the immediate threat of debt, individuals can shift from survival mode to strategic planning — researching for the best loan rates, setting savings goals and making empowered financial decisions. Improved relationships Debt doesn't just affect your internal world — it can impact your relationships as well. According to Bankrate's 2025 Financial Infidelity Survey, 40 percent of Americans in a committed relationship have kept a money-related secret from their partner. Nearly a third (33 percent) reported spending more than their partner would like, and 23 percent secretly racked up debt. Financial strain is a common source of tension in relationships, often leading to conflict, secrecy and emotional distance. Paying off debt together — or individually — can reduce that strain and foster healthier communication. Psychological challenges of paying off debt Becoming debt-free has significant mental health benefits, but the path isn't always easy. Many individuals face internal barriers that make debt repayment psychologically difficult. Shame Shame is one of the most overlooked obstacles to financial recovery. People in debt often feel embarrassed, believing their situation reflects personal failure. According to Aoyagi, this is basic biology. In their evolutionary past, humans became apex predators not with claws and teeth but by cooperating, which made maintaining their status in the 'tribe' vital. 'How others perceive us and how we see ourselves in the tribe, is our biggest strength,' he says. 'People who have a lot of financial stress — they're seen less favorably.' Fear of being seen as a social failure 'prevents us from using our most effective resource' — other people, Aoyagi says. Overcoming shame by seeking support — whether from credit counselors or financial advisors — can be a major psychological breakthrough. Scarcity mindset and risky behavior Debt can also trap individuals in a 'scarcity mindset.' Dr. Elliot Berkman, a psychology professor at the University of Oregon, explains that financial stress can impair long-term thinking. 'When you're low on resources, it's the same as being cognitively distracted,' says Berkman. 'Scarcity makes it hard for us to focus and engage in high-level thinking.' In this state, individuals often take riskier financial actions — not because they're reckless, but because they're desperate to escape the pressure. Paying off debt can break this cycle, helping people shift from reactive decisions to strategic, long-term planning. With greater mental clarity, people can focus on building financial stability. Strategies for paying down debt To unlock the psychological benefits of becoming debt-free, it's essential to create a plan that feels manageable and empowering. Here are some debt payoff strategies that can also support your mental well-being: Debt management plan (DMP): Through a DMP, you work with a credit counseling agency to consolidate debts into an affordable monthly payment. Your creditors may agree to waive fees or reduce your interest rates. Credit counseling : Credit counseling involves working with a reputable agency that examines your finances and helps you develop a budget and debt payoff strategy, such as a DMP. Negotiating with creditors: You could contact creditors and discuss credit card hardship programs or more favorable repayment terms (such as reduced interest rates or lump-sum payments). Or, you might work with one of the best debt relief companies. For a more in-depth guide to approaching your debt, check out Bankrate's expert advice on getting out of debt. Try this tool: Bankrate's debt payoff calculator How to avoid future debt That final debt payment is a great reason to celebrate. But the celebration shouldn't involve taking on more debt or spending more money. Resist the temptation to get that extra credit card unless it's part of a carefully considered plan to rebuild your credit score — secured credit cards can be valuable credit-building tools. Instead, put your newfound motivation into sticking to a budget and keeping track of your bills. Money you free up when your monthly debt payments end can go into an emergency fund to prevent debt from unexpected expenses. If you already have a healthy emergency fund, consider investing in a high-yield savings account or retirement account so your money can grow. Other ways to avoid getting back into high levels of debt include: Borrowing only what you need Being cautious with Buy Now, Pay Later (BNPL) programs Paying credit card bills in full each month Bottom line Paying off debt isn't just a financial achievement — it's a psychological liberation. From reduced stress and improved focus to better relationships and clearer thinking, becoming debt-free transforms more than just your bank account. By making a plan and taking consistent action, you can shift from survival mode to thriving.
Yahoo
01-05-2025
- Business
- Yahoo
Survey: 43% of Americans say money is negatively impacting their mental health
Paige DeVriendt, a 32-year-old living in Columbus, Ohio, has spent most of her life associating money with shame and anxiety. Today, DeVriendt and her husband both work, bringing in a combined annual salary of around $225,000. With that, they've been able to pay their bills, save and invest, all while chipping away at six figures of combined student loan debt. Although she's been able to comfortably afford her lifestyle, she's felt shame about money for a long time. Growing up, DeVriendt lived in a small town in northwest Ohio and absorbed a lot of her parents' financial stress. 'When I got to college and saw how other people lived on different (financial) levels, I was like, 'I want to be that,'' DeVriendt says. ''I don't want to be stressed for the rest of my life about money.'' Still, for most of her adult life, her nagging anxiety about money didn't go away. She felt a lot of shame over her high student loan balance and was terrified of the possibility of facing a layoff or other emergency — and no longer being able to pay her bills. 'I was very much functioning in the scarcity mindset when we did not need to be,' DeVriendt says. After years of shame about her student loan balance and feeling behind on her financial knowledge, DeVriendt is now finally in a place where she no longer feels such strong money anxiety. But it was a hard-earned fight to get there, and it took years of reading up on personal finance and learning how to budget. DeVriendt is far from alone; she's one of millions of Americans who have lain awake at night with money-related anxieties. More than 2 in 5 (43 percent) U.S. adults say money negatively affects their mental health, at least occasionally, causing anxiety, stress, worrisome thoughts, loss of sleep, depression and other effects, according to Bankrate's new Money and Mental Health Survey (polled March 19-21, 2025). That percentage is down from 47 percent in 2024 and 52 percent in 2023 — but remains the No. 1 factor affecting mental health, among other factors asked by Bankrate, such as politics, world news and climate change (38 percent) or one's health (36 percent). While more people say money impacts their mental health than current events, today, those two factors are deeply intertwined. President Donald Trump's on-again-off-again tariff announcements have roiled the stock market and are expected to increase prices for many common goods. In March, consumer confidence dropped for the second straight month to a 12-year low, according to the Conference Board. Today, tariffs, inflation, high interest rates and concerns of an upcoming recession are all exacerbating a problem that has existed for decades. 'The role of economic factors in mental health has been identified, studied, for over 50 years. This is not a new thing,' says Edwin B. Fisher, a professor at the Department of Health Behavior at the University of North Carolina-Chapel Hill Gillings School of Global Public Health. Money is an integral part of everyday life, Fisher says, affecting everything from our ability to care for our families to having fun to creating new opportunities. When money is the linchpin of so many of our lives, not having enough in savings or not knowing how to manage money can be terrifying. To demonstrate how money affects our mental health, Bankrate and polling partner YouGov Plc polled over 2,000 Americans on their feelings about money and mental health. The findings demonstrate that, while the percentage of Americans who say money is negatively affecting their mental health has fallen year-over year, money-related stresses are still pervasive. Money affects many Americans' mental health 43% of U.S. adults say money negatively impacts their mental health, at least occasionally, causing feelings of anxiety, stress, worrisome thoughts, loss of sleep, depression and other effects. Inflation is the most prominent culprit 69% of people who say money negatively affects their mental health cite inflation/rising prices as a reason why. The percentage is the highest it's been in three years, up from 65% in 2024 and 68% in 2023. Money concerns can fuel a vicious cycle Americans who say money is impacting their mental health are three times more likely to have paid a bill late over the past month than those who say money isn't impacting their mental health (at 22% versus 7%). Since 1976, Bankrate has been the go-to source for personal finance data, publishing average rates on the most popular financial products and tracking the experience of consumers nationwide. See more Money negatively affects more Americans' mental health, at least occasionally, than many other common stressors such as current events like politics, world news and climate change (38 percent); their health (36 percent); or the state of the U.S. economy (33 percent). 'We often see a 'hierarchy of needs' when it comes to Americans' mental health,' Bankrate U.S. Economy Reporter Sarah Foster says. 'If you're concerned about day-to-day bills, affording basic essentials or putting food on the table, you might not have much room left to fixate on the world around you, the U.S. economy or current events.' Source: Bankrate's Money and Mental Health Survey, March 19-21, 2025Note: Respondents could select multiple answers. Gender-wise, women are more likely than men to say money negatively impacts their mental health, at least occasionally (45 percent and 41 percent, respectively). What's more, baby boomers are less likely than younger generations to say that money negatively impacts their mental health, at least occasionally: Gen Zers (ages 18-28): 46 percent Millennials (ages 29-44): 47 percent Gen Xers (ages 45-60): 49 percent Baby boomers (ages 61-79): 34 percent In 2024, Republicans and Democrats said money negatively impacted their mental health more than any other factor — but that's no longer the case for Democrats. This year, Democrats cite current events as the No. 1 factor that negatively impacts their mental health, at least occasionally (52 percent), while 46 percent cite money. Money was Democrats' No. 1 issue in 2024, when 49 percent said it negatively affected their mental health, at least occasionally. In 2024, only 41 percent of Democrats cited current events. Republicans, however, cite money as the No.1 factor that negatively impacts their mental health, at least occasionally (38 percent). This is down slightly from 41 percent who said so in 2024. Also, college-educated people are more likely than those without a college degree to say current events, rather than money, negatively impact their mental health: Post graduate degree: 55 percent cite current events, 40 percent cite money Four-year degree: 49 percent cite current events, 44 percent cite money Some college/two-year degree: 41 percent cite current events, 47 percent cite money No high school diploma/only a high school diploma: 25 percent cite current events, 41 percent cite money The majority of Americans whose mental health is negatively impacted by money say inflation/rising prices (69 percent) is a culprit. Today, more people whose mental health is negatively affected by money cite inflation/rising prices than in 2024 (65 percent) and 2023 (68 percent). As of March 2025, the inflation rate is actually the lowest it's been since February 2021, according to the Bureau of Labor Statistics (BLS). But there may be a public disconnect between the publicized inflation rate and the high price tags people see on store shelves. 'The slowing inflation that economists celebrated last year does not mean prices are cheaper, just that they aren't rising as fast as they once were,' Foster says. 'For households, every future increase in inflation is still piled on top of previous price hikes.' People whose mental health is negatively affected by money also frequently cited paying for everyday expenses, such as groceries or utilities (61 percent); not having enough emergency savings (57 percent); not having enough discretionary spending money (46 percent); being in debt, such as credit card debt, medical debt or student loan debt (43 percent); paying for housing, such as rent or mortgage payments (37 percent); and being unprepared for retirement/having a low return on their investments (34 percent): Source: Bankrate's Money and Mental Health Survey, March 19-21, 2025Note: Percentages are among U.S. adults who have money concerns that impact their mental health; Respondents could select multiple answers. Less frequently, people who say money negatively impacts their mental health cite not having a stable income (30 percent), high interest rates (25 percent), job security (21 percent), saving for a home or being unable to afford a home (21 percent) or financial market volatility or investment losses (17 percent). Among people who say money negatively impacts their mental health, women are more likely than men to cite inflation/rising prices (72 percent of women and 64 percent of men). They are also more likely than men to cite not having enough emergency savings, while men are more likely to cite their job security or not having a stable income. Types of money concerns: Not having enough emergency savings: 62 percent of women, 51 percent of men Paying for everyday expenses (e.g. groceries, utilities, etc.): 65 percent of women, 56 percent of men Paying for housing (e.g. rent, mortgage, etc.): 41 percent of women, 32 percent of men Not having a stable income: 26 percent of women, 34 percent of men Job security: 17 percent of women, 26 percent of men Among those who say money negatively impacts their mental health, Gen Zers are the most likely generation to cite not having a stable income as a reason why: Gen Zers: 43 percent Millennials: 33 percent Gen Xers: 30 percent Baby boomers: 13 percent They're also most likely to cite saving for a home (or being unable to afford a home): Gen Zers: 35 percent Millennials: 29 percent Gen Xers: 16 percent Baby boomers: 6 percent The economy was a major sticking point for Republican voters in the 2024 election, and it's still a major issue for them today: In both 2024 and 2025, 68 percent of Republicans who said money negatively impacts their mental health cited inflation as a reason why. A slightly lower 64 percent of Democrats cite inflation in 2025, up from 61 percent in 2024. When money negatively affects our mental health, it can create a knock-on effect, making it easier for financial tasks to fall by the wayside. Americans who say money is negatively impacting their mental health are three times more likely to have paid a bill late over the past month, compared to people who say money isn't impacting their mental health (22 percent versus 7 percent). They're also less likely to have saved for the future or for a goal (20 percent versus 24 percent). Still, many are keeping an eye on their finances. People who say money negatively impacts their mental health are more likely to have reviewed their budget in the past month, checked their credit card or bank account balances, tracked their spending and looked up their credit score: Source: Bankrate's Money and Mental Health Survey, March 19-21, 2025Note: Respondents could select multiple answers. If economic or financial worries are impacting your mental health, it helps to focus on what you can control. You probably don't have any influence over trade policy or inflation, but you can still control other aspects of your finances. 'Tariffs, inflation, higher interest rates and a recession are all forces that Americans can't prevent, no matter how much they want to,' Foster says. 'Taking proactive steps to manage your finances can provide a sense of stability and security.' Here's what you can do, starting today: 1. Hone in on what you can control Watch your cash flow. Know how much money you have coming in your checking account and how much is leaving by downloading a budgeting app, creating a budget spreadsheet or just regularly checking your bank and credit card statements. Check prices and make substitutions when necessary. Download your local grocery store's app or check its website to compare prices on your frequently-purchased items before heading to the store. Similarity, if you haven't compared prices for your car insurance, utility services, internet or other bills, consider switching to a cheaper carrier, or call your carrier and see if they can lower your bill. Get in the habit of saving, even if it's only a few dollars a week. If you don't already, set periodic, automated transfers from your checking to your savings account. Even if you're only able to set aside a few dollars every week or pay period, having those savings will come in handy in an emergency. Foster refers to these steps as an emergency financial game plan. 'Having an emergency financial game plan functions much in the same way as fire extinguishers or emergency exits,' Foster says. 'They can't do much to prevent an urgent situation, but knowing where they're located can probably help you feel a little bit more at ease.' 2. Break financial goals into smaller, more manageable tasks When you're feeling overwhelmed by your finances, even small tasks can seem insurmountable. Instead of leaping into the deep end by creating complicated spreadsheets or making a five-year debt plan, take baby steps towards your financial goal to get the ball rolling. If your goal is… Try… Eventually, you'll want to… Spending less Looking at your bank or credit card statements from the past month. Tally up one category where you'd like to spend less (for example, eating out or shopping) to understand how much you're spending. Does it feel too high or on target? Create a budget and track your spending over time. Saving more Setting up a recurring, automated transfer from your checking account to your savings every pay period or every month. Target what you can cut from your budget to give you more wiggle room for savings. Investing more If your employer has a 401(k) match, making sure you're contributing enough to receive it. It's free money for your retirement fund. Meet the contribution limit for the year and/or open a Roth IRA. 3. Avoid doomscrolling Social media can be a great source of financial advice, but it can also suck you in quickly. Doomscrolling — or compulsively scrolling online for a long period of time, even when it makes you feel depressed or anxious — can negatively affect your mental health. DeVriendt learned much of what she knows today from personal finance content creators online, but she is judicious with blocking accounts and avoiding advice that's overly negative or makes her feel bad. 'It's so important to only follow people and only engage with content that makes you feel good, or (makes you feel like) you are taking something away that's going to make your life better,' DeVriendt says. 'Don't get me wrong, I'm human, there are absolutely times that I doomscroll, but I think controlling what we can and really looking out for yourself (is effective).' 4. When in doubt, seek professional help If your concerns about money are interfering with your day-to-day life, you might want to consider seeking the services of a financial therapist who can help you get to the root of your concerns. A financial therapist is a licensed mental health professional who specializes in financial problems, can help you understand why money is affecting you and guide you through coping strategies. If your concerns are more tangibly money-related — for example, you're worried you're not investing wisely or you want to create a financial plan for the future — you can seek the services of a financial advisor, who can help with the dollars and cents. If you're still concerned and need more local, personalized guidance, call 211 or visit your state's 211 site for a list of mental health and personal finance resources in your area. Learn more: How to start saving (even if you're starting from scratch) Methodology All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,363 U.S. adults, of whom 1,046 have money concerns that impact their mental health while 1,317 do not. Fieldwork was undertaken between March 19th-21st, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population. Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
What happens to my money if my bank is robbed?
It's an uneventful weekday, and you're running a few errands during your lunch break. You decide at the last minute to run inside the bank to finally deposit that paper check you've had in your pocket for the past month, as well as review your checking account balance and perhaps inquire about opening a money market account. All is quiet. However, your banking experience takes an unexpected turn when the suspicious-looking customer in front of you passes a note to the teller. The rigid, yet cool, expression on the teller's face says it all: This is a bank robbery. When you hear about a bank robbery, some of your immediate questions – outside of how it went down – are likely about the safety of your money: Is my cash safe? What exactly happens to my money if my bank is robbed? Will I be safe if I return to the bank? These are some of the questions real estate agent Luke Wong had after hearing a news report about a robbery at his local Capital One bank in Queens, N.Y. in 2019. Wong, who asked not to use his real name, says he was worried about his money. He also had concerns about his safety. 'My first thoughts were, 'Is my savings account affected? Will I be able to withdraw cash?'' says Wong. 'What if I go to my bank to make a deposit and the robbers come back? I even thought about switching to a different bank.' Wong's fears stemmed from the fact that a nearby branch, another Capital One Bank, was robbed that same day. Such shocking news further compounds the already existing anxieties many Americans have about their finances. In Bankrate's 2024 Money and Mental Health Survey, roughly half (47 percent) of U.S. adults surveyed said money has had a negative impact on their mental health. Bank robberies, the likes of those portrayed in such heist films as 'Bonnie and Clyde,' 'Dog Day Afternoon' and 'Inside Man,' may be (thankfully) few and far between, but bank robberies do happen. For example, there were 1,112 commercial bank robberies in the U.S. in 2023, according to the FBI's most recent Bank Crime Statistics report. Roughly $4.7 million was lost that year due to commercial bank robberies. Here's what you should know if your bank is robbed and what happens to your money. First, and foremost, if your bank is robbed, don't panic. There are protections in place to ensure your money is safe. You can have peace of mind knowing you won't be in a situation where you check your bank account and see a zero balance. Wong says after the robbery, his bank was closed for the day. However, the next day everything was pretty much business as usual. His checking and savings accounts were untouched. Nothing out of the ordinary took place in the aftermath. 'I probably had no reason to worry,' says Wong. 'My accounts were fine and nothing notable happened. However, I did toy with the idea of withdrawing some cash and hiding it at home.' Although it might be tempting to hoard cash in your house, resist the urge. Your money is safer in a bank. 'Not only is your money safe in a bank because of insurance, it's far safer than in your home,' says Joe Saul-Sehy, creator and co-host of the Stacking Benjamins podcast and author of Stacked: Your Super Serious Guide to Modern Money Management. 'Homeowners policies traditionally cover personal property, but actual cash stored in your home is either not covered or capped to a small amount.' Bankrate's take: Concerned about the safety of your money in your bank? Let Bankrate put your mind at ease by answering your FAQs about bank safety and deposit insurance. Contrary to popular belief, a bank robbery is not covered by Federal Deposit Insurance Corporation (FDIC) insurance. FDIC insurance protects customers in the event of a bank failure, not a robbery. Deposits are insured by the FDIC for up to $250,000 per depositor, per insured bank for each account type if your bank goes out of business. If a bank is robbed, your money is protected by what's known as a banker's blanket bond. The FDIC describes this as general insurance that banks buy to protect themselves from losing money due to such unforeseen incidents as fires, floods, earthquakes, robberies, or employees stealing or mishandling money. A bank robbery would result in a loss for the bank, but it's unlikely there would be a financial loss for the bank's customers. Banks take steps to make sure your money is shielded before an event like a robbery occurs. What's more, financial institutions do their best to stay one step ahead of would-be thieves. 'Banks invest heavily in training, sophisticated security systems and other countermeasures to reduce the risk of robberies and protect customers and staff,' says Sarah Grano, a spokesperson for the American Bankers Association. 'The majority of robberies end in arrest due to well-trained tellers, 'wanted' posters and internet sites, tip lines, alarm systems, surveillance cameras, and the sharing of information within the industry.' The person who robbed the bank in Wong's neighborhood had the misfortune of encountering an exploding dye pack. This is a bank security measure where a device is attached to a stack of bills. When a robber leaves the bank, the dye pack is activated electronically as they exits. The result is the release of a dye that covers the bills and the robber. The dye is very difficult to remove. What's more, some of these dye packs also contain tear gas. Fortunately for the customer, nothing. Because banks are insured through their banker's bond, you, the bank customer, are covered. You can also take comfort in the fact that bank robberies aren't as common as they once were. 'U.S. bank robberies are at an all-time low thanks to better bank security, improved investigative techniques, tougher sentencing and the shift to online transactions,' says Grano. 'In the event of a robbery, customer accounts are not impacted, so there is nothing a customer needs to do.' Angelo Crocco, owner of Randolph, N.J.-based AC Accounting, says it's important not to get caught up in fears of a masked robber taking over your bank. He says it's more likely that a criminal will engage in a digital attack on your finances. 'The real battlefield is cyber, not cash drawers,' says Crocco. 'The bank's insurance and back-end systems will ensure that, even if the branch was torn to shreds. That's not where risk lives. The actual threat is outdated cybersecurity layered over legacy systems. If your bank isn't constantly upgrading their tech, you should be more concerned about a keyboard-based heist than a guy with a getaway car.' Crocco advises only banking with financial institutions that use end-to-end encryption, monitor for unusual activity and aren't lagging behind on security measures. He also recommends enabling account notification features on a bank's app. In addition, Crocco says it pays to be smart about how you send and receive sensitive bank information. If you typically bank in person, it's reasonable to be hesitant to resume your usual banking activities. However, there's no harm in continuing your banking relationship after a robbery. Raoul P.E. Schweicher, managing partner at Shanghai-based MSadvisory, echoes Crocco's observations about increased bank safety in the wake of a robbery. 'Banks boost their security after a robbery, so you might even be banking with a safer institution,' says Schweicher. 'Unless there are other issues like terrible customer service or higher fees, there's no reason to switch banks just because of a robbery.' Wong, who prefers in-person banking, says he wasn't ready to return to his bank after the robbery. He waited for about a month before making deposits. 'I didn't feel safe after the bank that I trusted with my money was targeted by robbers,' says Wong. 'I was afraid to go back because I was worried another robbery could happen while I was there.' If you're facing a similar situation, it's understandable if you need to take some time before going back to your bank. Consider online-only banking until you're comfortable making in-person transactions. Keep in mind: Are online-only banks just as safe as traditional banks? Typically, yes. Learn how safe they are and what precautions you should take online in, Do online banks offer financial security? While a bank robbery can be a frightening experience, you don't have to worry about your funds disappearing. Financial institutions have safety measures in place to shield your money from would-be thieves. When it comes to online account safety, you can take the following steps to protect your money: Use strong passwords and never share them. Turn on two-factor authentication so that you have a layer of security in addition to your password. Monitor account activity. Choose a bank with strong online security measures. Sign in to access your portfolio
