Many Americans are Stressed About Money, 6 Ways to Cope

About half of Americans (51%) say they regularly stress out about money, according to an April 2025 NerdWallet survey, conducted online by The Harris Poll.

That stress hits some groups of Americans harder than others. According to the survey, women are more likely to say they stress about money regularly than men (56% vs. 45%), and baby boomers (ages 61-79) are much less likely to stress about money than those in younger generations.
 
Factors that could be making Americans feel off-kilter include inflation, uncertainty over tariff policy and high housing costs.

If you’re among those regularly stressed out about money, here are six large and small ways to improve your financial well-being.

1. Keep tabs on where your money is going

How much are your core monthly expenses? What is your discretionary income? How much money did you spend last month? Many Americans may not know the answers to these questions, which can make understanding their finances challenging. Facing your finances may be difficult if they’re a source of stress for you, but having a realistic view of your money is an essential first step to making improvements.

Knowing where all of your money goes may not be as easy as it sounds. People use a variety of different payment methods — debit cards, credit cards, automatic payments, payment apps, cash end even maybe paper checks. But you don’t necessarily have to track your spending forever; reviewing your spending for at least a month can give you enough of a handle on where your money is going.

Expense tracking apps can help automate the process, but you can also opt to review your various accounts manually at the end of the month, if that works better for you.

2. Create a plan for the money you have

Once you know how much you’re spending, you can take control and make changes to hit your spending and savings goals.

There are many approaches you can take to create a financial plan that works for you. One useful framework is the 50/30/20 budget: using 50% of after-tax income for needs, allowing 30% for wants, and setting 20% aside for long-term savings and debt repayment. You can use a budget template to see how much you’re spending and how far off it is from the 50/30/20 targets. From there, you can adjust your spending to be better aligned with your overall goals.

3. Start (or increase) your emergency fund

The NerdWallet survey found that 41% of Americans are concerned that they don’t have enough money saved for emergencies. Knowing an unexpected expense or job loss would be financially devastating is enough to stress anyone out.

Ideally, everyone should have enough money set aside to cover three to six months of their core expenses — like housing, food, utilities and minimum debt payments. That goal can be intimidating, especially if you’re starting from scratch. Use a savings calculator to find out how much you need to add each month to get the balance to your target, and don’t be afraid to start small.

Consider putting your emergency fund in a separate account — such as a high-yield savings account — and only tapping it for true emergencies or unavoidable expenses. Having this cash cushion in place can provide peace of mind and keep you from financial derailment when the unexpected happens.

4. Reduce debt

Unsecured debt, like credit card debt, is associated with higher stress levels and negative mental health effects, according to the American Public Health Association. In fact, the organization reports reducing this debt can improve health outcomes.

Indeed, the survey found 23% of Americans are concerned about having too much credit card debt. Getting a debt payoff plan in place could be a great way to reduce financial stress.

Some with credit card debt may also have car payments, student loans and personal loans to pay. But because those interest rates tend to be much lower, it almost always makes sense to start by reducing credit card balances.

One popular approach is the debt snowball — paying off your balances from smallest to largest to reduce the number of different payments and get quick wins. Another approach, known as the debt avalanche, has you prioritize your balances from highest to lowest interest rate. Depending on how much credit card debt you have, paying it off can seem a tall order. But every dollar you put toward your balances can reduce your interest burden and stress level.

5. Explore the property ladder

Stability can help reduce stress, which may explain why homeowners aren’t as financially anxious as their renting counterparts. According to the NerdWallet survey, Americans who own their home are less likely to stress about money regularly than those who rent (46% vs. 62%).

This could be because buying a home typically stabilizes housing costs based on current prices for the long-term, whereas renters generally have to renegotiate a lease from time to time. Further, homeownership provides numerous non-financial benefits — like stability and the ability to customize — while also providing some financial gains, according to the Association for Financial Counseling and Planning Education.

Despite affordability barriers — especially in major cities — purchasing a house or condominium may be more accessible than you think.

More than 3 in 5 (62%) of Americans mistakenly believe that a 20% down payment is required to buy a home, according to a NerdWallet’s 2025 Home Buyer Report. That’s not true, although it is one way to avoid paying for private mortgage insurance.

It’s not the only way, though. Veterans, for example, can secure a mortgage without a down payment through VA loan programs. And many first-time homebuyers can borrow with a down payment as low as 3%. It’s also a good idea to research homeownership incentives and programs offered by community groups and local, state and federal agencies.

Ultimately, purchasing a home, let alone down payment and loan decisions, is complex and highly dependent on your individual situation.

Homeownership isn’t right for everyone, and may not be right for you at the present time. But don’t count yourself out without looking into your options. If you see purchasing a home as a reasonable long-term goal, saving for it now can make the buying decision less stressful down the road.

6. Keep reading about personal finance

One thing that can reduce stress is simply educating yourself about personal finance. Financial literacy may lead to improved financial well-being, according to 2023 research published in the journal Sustainability.

Overall, 27% of Americans aren’t confident about their overall financial knowledge, according to the recent NerdWallet survey.

The good news? Just reading this article was an excellent first step. To go further, consider making it a regular practice to learn more about personal finance topics that are new to you. Newsletters, podcasts and social media accounts from reliable sources can boost your financial literacy, and thus, your confidence.