A person's anxiety over a $1.2 million windfall highlights a growing national trend. Financial anxiety and 'money dysmorphia' are on the rise, affecting even those with substantial wealth and causing significant mental and physical distress.
October 3, 2025
Source:
MarketWatch
Wealth and Worry: A Growing Paradox
A recent personal account of feeling anxious about a $1.2 million inheritance sitting in a money-market account is not an isolated case. It highlights a widespread and growing trend in 2025: financial anxiety.
The sentiment, “Having a large sum just sitting there freaks me out,” reflects a complex emotional relationship with money that transcends income brackets.
Anxiety Is Widespread
Even substantial cash reserves do not guarantee peace of mind. A 2025 study by Northwestern Mutual revealed that nearly 70% of Americans report that financial uncertainty has made them feel depressed and anxious. This represents a significant increase from prior years, fueled by economic instability and inflation concerns.
Anxiety can stem from a variety of sources:
Fear of losing newfound wealth.
Guilt over having more than others.
Mistrust in financial institutions.
Concern that inflation is eroding the value of savings.
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Source:
MarketWatch
Understanding 'Money Dysmorphia'
The discomfort with one's financial standing, despite evidence of security, is a phenomenon known as money dysmorphia. It is a distorted perception of one’s financial well-being that leads to unhealthy behaviors and emotional distress.
Symptoms and Generational Trends
This condition often manifests as:
Obsessively checking bank balances.
Hoarding cash out of fear.
Hesitation or guilt when spending money.
Research indicates this issue is particularly prevalent among younger generations. Over 53% of Millennials report high financial anxiety, with more than a third experiencing weekly depression or anxiety due to money worries. The gap between actual financial health and perceived security appears to be widening, driven by economic unpredictability and social comparison.
Financial Anxiety by Generation
Generation | % Reporting Weekly Financial Anxiety | Main Triggers |
|---|---|---|
Gen Z | 39% | Economic uncertainty, comparison, lack of financial literacy |
Millennials | 38% | Job security, inflation, future uncertainty |
Gen X | Lower | Retirement, healthcare, education costs |
Boomers | Much lower | Fixed income concerns, healthcare |
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Source:
MarketWatch
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