FINANCIAL STRESS IS ON THE RISE

Tariffs, high prices and an uncertain economy getting you down? These steps can help.

- BY JANNA HERRON

AMERICANS' money worries are stacking up as tariffs, inflation and a weakening jobs outlook take an increasing toll. Even stocks hitting a series of record highs lately hasn't been enough to shake the financial jitters, with memories of the market's spring swoon still relatively fresh.

Four out of five Americans in a survey by Discover this summer said they feel anxiety about their finances—an increase of nine percentage points since 2021—and one-third characterized their stress as moderate to severe. The findings echo recent studies by Northwestern Mutual and Motley Fool, which found that more than half of Americans now worry about their finances at least three times a week.

Overall sentiment in the U.S. continues to deteriorate, with major gauges of consumer confidence falling in August. Topping the list of concerns: high inflation and everyday expenses, followed by job fears and worries about a recession.

“The change in trade policies and uncertainty over prices—most of our clients are aware of that, and it puts them on edge,” says certified financial planner Eric Walters, managing partner at Summit Hill Wealth Management in Greenwood Village, Colo.

The concerns are not unfounded. Several measures of inflation have been inching higher recently, and many retailers and consumer goods manufacturers are warning that prices will continue to rise due to tariffs. The latest analysis from the Budget Lab at Yale University suggests tariffs could add 1.8% to price increases this year, the equivalent of an average income loss of $2,400 per U.S. household. At the same time, employers are becoming reluctant to hire, creating another economic headwind.