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Wild stock market swings and rising recession fears have put Americans on edge. Here are strategies to lower the angst.
April 12, 2025, 5:01 a.m. ET
Even before this year’s economic turmoil hit, financial anxiety among Americans was running high. Really high.
Four out of five Americans in a survey for Discover last year said they were worried about their money situation, with inflation, everyday expenses and the state of the economy leading a litany of concerns. Nearly two-thirds said they would be financially unprepared if they lost their job, and more than half felt the same way about a recession.
Now, tariffs and a global trade war, which could raise prices and discourage consumer and corporate spending, have economists raising their odds of such a downturn this year. Coupled with wild swings in the stock market, which is down about 9 percent for the year, it’s no wonder that financial anxiety is spiking to new heights.
“Since Covid, we’ve all just been waiting for the next shoe to drop, moneywise,” said Megan McCoy, a financial therapist and an associate professor of personal financial planning at Kansas State University. “For years now, it’s been one kind of painful financial situation after another. We can’t catch our breath.”
The danger is not just the financial anxiety, which has been linked to higher risk of various health problems, from depression to heart attacks. It’s also that the pressure can drive you to take actions that could ultimately make your financial situation worse.
“The urge people feel to do something to make themselves feel better can be overwhelming,” said Anne Lester, former head of retirement solutions for J.P. Morgan Asset Management and author of the book “Your Best Financial Life.” “But it’s hard to make sound decisions when you’re scared.”
