New data from nudge’s 2025 Global Financial Wellbeing Report reveals that growing financial uncertainty is taking a serious toll on Americans’ mental, social and physical health, with 41% reporting a direct negative impact on their personal wellbeing.
These findings come at a time when the US is facing a deepening mental health crisis. According to Mental Health America, nearly 60 million adults (23.08%) experienced a mental illness in the past year, including conditions such as depression, anxiety, and bipolar disorder.
The report, based on a survey of over 3,000 US employees, underscores the risks linked to poor financial understanding, while also highlighting the positive outcomes strong financial literacy can have on workforce wellbeing and productivity.
Key findings from the report
The data reveals growing economic pessimism among US employees, with financial optimism dropping by 59% year over year. Only 28% now feel hopeful about their financial future, down from 68% in 2024 — as inflation, rising debt, trade tariffs, and the increasing cost of living continue to fuel widespread financial anxiety.
This ongoing pressure appears to be contributing to a rise in mental health concerns, with key insights from the report including:
- 84% say they lack confidence in understanding and managing potential changes related to trade tariffs.
- 63% expect inflation to worsen their financial situation, making everyday necessities increasingly unaffordable.
- 54% report heightened stress due to debt.
The true impact of financial stress upon mental health
The findings emphasize the profound connection between financial stress and mental health, revealing that 42% of Americans are experiencing negative mental health impacts due to financial pressures. With 37% reporting anxiety and 27% experiencing depression linked directly to financial worries, the data paints a concerning picture of a workforce under strain.
More alarmingly, 5% of respondents report experiencing suicidal thoughts as a result of their current financial behaviours or situation.
Commenting on these findings, Jonathan Bellamy, Benefits Manager at Astrazeneca said: “Financial stress has a huge impact on people both inside and outside of work. If someone is stressed by their finances, it can cause a lack of focus and decreased productivity. Ultimately, it could also lead to longer-term mental health issues, so it is important employers provide support for employees to better understand finances and educate them on the financial benefits they have within their total reward packages”.
The burden on physical and social health
The effects of financial stress aren’t just limited to the mind; they’re appearing in employees’ physical health too. The data shows that 30% of employees lose sleep over financial concerns, 26% experience headaches or migraines, and 22% report fatigue or exhaustion. Additionally, 16% link their financial stress to high blood pressure.
The impact also extends into personal lives, with 19% saying financial stress has caused tension in their relationships, and 17% reporting social withdrawal.
Financial education is the solution
As financial pressures intensify, employees are increasingly aware of the need to strengthen their financial knowledge — with 83% actively working to improve their financial literacy. Data shows that those with strong financial literacy are 16% less likely to experience stress and 13% less likely to feel anxious.
This positive impact extends across all areas of wellbeing, with those who are financially literate significantly more likely to report stronger mental, social, and physical health globally:
- 7x more likely to rate their mental health as excellent.
- 7x more likely to rate their social health as excellent.
- 6x more likely to rate their physical health as excellent.
While financial literacy levels are consistent across global markets, US employees are most likely to rate their financial health poor-very poor (28%) compared to other regions and report higher financial anxiety (37%) than the global average (31%) — a clear signal that more targeted employer support is urgently needed.
Jeff Miller, Vice President US at nudge and Certified Financial Education Instructor, commented: “The data reveals the far-reaching impact of financial stress, affecting not just mental health, but physical and social wellbeing too. The research shows financial strain can lead to sleepless nights, headaches, and relationship tension — all of which significantly impact people’s daily lives.
Financial literacy is a powerful way to reduce financial stress during volatile times. By equipping employees with the knowledge to better manage their finances, employers will ease the pressure on employees’ minds, bodies, and relationships. Businesses must recognize the importance of offering personalized financial education to create a healthier, more productive workforce.”
