Merrill Edge Article #2

Money stresses people out — talking about it, making it, spending it, saving it. From every angle, financial burdens are a major source of worry and can have a negative effect on people's health. A recent report from Merrill Edge shows that 59% of people believe managing their money takes a toll on their mental health. This falls even more heavily on women, as 64% of female respondents say finances negatively affected their mental health. This effect is especially true for Gen Z and millennials (61% and 59%, respectively). With student-debt loads, slow wage growth, medical bills, and rising housing costs, it's no wonder that so many feel overwhelmed trying to manage their finances. But while you might not be able to control every aspect of your financial situation, here are some ways you can ease the mental strain.

59% of Americans say managing money affects their mental health. Here are 3 ways to put your money worries to rest.

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People across all age groups are stressed by having to manage money. Whether it's paying off student loans, medical bills, or other costs, finances are taking a toll on people’s mental health. Planning can help ease the strain.

Tackle it head on

Loren McFalls, 29, says money is a big stressor in her life because she’s carrying a lot of debt and recently lost her job. Right now, she's putting any extra money toward paying off her debt, and to deal with the strain on her mental health, she started a work exchange with a yoga studio to get free classes "I do yoga a lot to deal with stress," she says. "And knowing that there's an end in sight for the debt helps a lot."

Meredith Kucharov, 31, says she and her husband were paying a combined $1,500 a month in student-loan payments, which meant they weren't able to save for a house, car, or retirement. "Our way of coping with it was avoidance," she says. "We made our minimum student-loan payments and meant to 'get around to' the other stuff but never did." Then, about a year ago, they talked to a financial advisor who helped them map out a blueprint to address their financial goals. Refinancing the loans was the first step. While the monthly payments are about the same, the loans will be paid off much sooner and taking active steps have greatly decreased their worries about money. "Getting professional guidance helped us feel like we finally had control of our money and that there was an end in sight," she says. Aron Levine, head of Consumer Banking and Investments at Bank of America, echoes this advice. "If you’re feeling stressed due to your specific financial circumstances, the best thing you can do is to seek guidance," he says. "There are professionals available to help you, and many resources exist if you want to educate yourself on different ways to save, invest, and tackle debt. Whether you work with a financial advisor in person or seek help online, getting control of your finances and creating a plan can boost your confidence in your financial well-being.”

Improving financial well-being requires planning for both now and in the future. Without a plan to tackle debt or build savings, managing finances can feel overwhelming. Some people are even postponing things like taking a vacation or having children so that they can save more money. Biz Cherson, 37, says she put off her wedding until her husband-to-be paid off credit-card debt he'd accumulated before they were married. "The credit-card debt was definitely a major stressor," she says. "It didn't bother him as much as it bothered me. If he hadn't paid it off, I'm not sure if we would’ve gotten married. The fact that he was able to be disciplined and really focus on that financial goal showed me that he was ready to be a full partner to me." Cherson says she's always been a saver, so just having more money in the bank automatically reduces her stress. "But also, doing a ton of research before making a big financial decision helps me deal with the stress," she says. "The more info I have, the better I feel about my decisions." The good news, according to the Merrill Edge Report, is many Americans worked to be more fiscally responsible in the past year. They are also confident that within their lifetime they will be able to retire at their target date (80%), create a savings or trust fund for their children (80%), and pay off their mortgage and student loan debt (80% and 77%, respectively.) “We’re seeing that Americans are prioritizing their financial goals, and taking steps toward improving their futures,” says Levine. “While they are becoming more conscientious about money and mindful of their spending, we were happy to see Americans report they have a high level of confidence about their financial future.”

Get creative

Set goals and plan for the future

Read the 2019 Merrill Edge Report to learn more about the report findings. Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S”, or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S”, or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, Member SIPC and wholly owned subsidiary of Bank of America Corporation. Investment products:

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Tackle it head on

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