TULSA, Okla. — What’s triggering financial stress?
Rising prices for gas, groceries, and housing are squeezing American families, and a new study shows financial stress has become nearly universal.
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Ron Gilton is a Tulsa father of 9 children, ages 3 to 13. He takes his kids to LaFortune Park for afternoons outdoors because it costs nothing. The everyday expenses of raising a large family, he said, add up fast.
“Clothing, things they need for a day-to-day basis, even food,” Gilton said.
“The cost of living is pretty high,” Gilton said.
Rent is among his biggest pressures. Gilton said he pays $1,400 a month for a two-bedroom apartment.
“I remember paying $800, $700 for a two-bedroom maybe five years ago,” Gilton said.
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Gilton told 2 News Oklahoma that his paycheck keeps pace with the rising rent.
“It seems like everything is rising, as far as gas prices and everything, and wages are remaining the same. That’s killin’ us too,” Gilton said.
Gilton’s experience reflects a nationwide trend. A new Motley Fool study finds financial stress is not limited to the lowest-income households.
“A significant percentage of the country still lives paycheck to paycheck,” Jack Caporal of Motley Fool said.
“The survey finds that financial stress and anxiety are not just a fringe problem; it’s something that 89% of Americans feel occasionally,” Caporal said.
Forty-four percent of respondents rated their financial stress as high or extremely high.
Inflation is the leading driver of that anxiety.
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“The top cause of financial stress and anxiety is inflation. It was cited by 38% of respondents as the primary cause of stress,” Caporal said.
Caporal noted the survey was conducted in mid-April, before the most recent headline inflation number of 3.8%, the highest since 2023, was reported. He said that the figure validates what respondents were already feeling.
Rising energy prices are compounding the problem beyond the gas pump.
“Obviously, you feel that at the pump, but also producers in the economy are beginning to report much higher costs as well. And so, higher energy prices are really going to seep into the rest of the economy, and that’s going to put a damper on spending and increase the cost of goods throughout the economy over the next few months,” Caporal said.
Caporal said disruptions to oil flows out of the Strait of Hormuz tied to the ongoing crisis in the Middle East are a key factor, and that relief for consumers this summer is difficult to foresee. Even if the strait were to reopen, he said, refining operations and oil output take time to restart, and energy produced in that region takes weeks to reach other parts of the world.
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Consumer spending will be a closely watched metric in the coming months, Caporal said, particularly as the summer season approaches.
“The survey results show that folks were already very concerned about inflation. It was already keeping them up at night. It was already causing them mental strain. It was already causing them anxiety, and it’s hard to see a scenario this summer where consumers really feel any sort of relief,” Caporal said.
Younger families are especially vulnerable. The Motley Fool survey found that many millennials lack a substantial emergency savings fund.
“Not many of them have a large emergency savings fund and a large financial runway, which often contributes to more financial stress and anxiety because they don’t feel as though they’ve accumulated enough wealth to absorb the next financial shock,” Caporal said.
When a surprise bill arrives, many turn to high-interest credit cards or personal loans to cover it, choices that carry long-term consequences.
“And those have real compounding costs. Not only can they make you more financially stressed out, but they can lead to higher costs down the road through things like higher interest payments,” Caporal said.
The survey also found that more than 10% of respondents have avoided a doctor’s appointment because they were concerned they could not afford it, a form of deferred care that can lead to more expensive medical needs later.
Caporal said the first step toward reducing financial anxiety is taking a clear-eyed look at your budget, understanding fixed costs, upcoming expenses, and income, and setting financial goals from there.
“Operating in the unknown and not being clear about what financial condition you’re in often generates more financial anxiety. It can lead to short-term decision making and fewer optional financial choices, such as, oh, I’ll just put it on the card, and then that builds up and builds up,” Caporal said.
Setting aside even a small amount each month in an emergency fund can reduce the impact of an unexpected bill and ease the financial stress that comes with it.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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