Half of adults suffer from financial stress. What are the causes?

2024-04-03 10:46:27Kosova&Bota SHKRUAR NGA REDAKSIA VOX

Half of adults suffer from financial stress. What are the causes?

At least half of adults in a number of major economies report being stressed about their personal finances, and say inflation is one of the main reasons.

A significant number also say they feel worse off financially than their parents and are pessimistic about their children's financial future. The data is the result of the International Money Security Survey, conducted by SurveyMonkey.

In the US, Australia, Spain and Mexico, around 70% of adults said they were 'very or somewhat stressed' about money. The percentage dropped slightly to 63% in the United Kingdom, 57% in Germany, 55% in Switzerland and roughly half of people in Singapore and France.

In all those countries, between half and two-thirds of people said they considered themselves part of the middle class – except in the UK, where it was 37%.

Half of adults in Australia, Germany and the UK said they were worse off than five years ago. Meanwhile, of the countries surveyed, only adults in Singapore and Mexico were more likely to say they were better off financially than their parents. Inflation was widely cited as a source of financial stress, along with lack of savings, economic instability and rising interest rates. The study of 4342 adults was conducted during March of this year.

The health of the global economy, while muted in some areas, is not being reflected in the perceptions of the average person. Despite the performance of the written economy, roughly half of adults are stressed about their personal finances in every country.

Global economic growth is slowing, but most developed economies have avoided the recessions that were predicted amid high inflation and rising interest rates. Labor markets have proved resilient, but multiple surveys have suggested a gloomy sentiment among consumers who have been hit hard by rising prices on household bills and everyday goods.


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