Everything 2020 has thrown the couple’s way has only shown what they’re capable of, “but we need to be resourceful and we need to plan,” she says. For our listeners, if you have any comments or ideas you'd like to share about our podcast, send an email to For the American Psychological Association, I'm Kim Mills. Surveys show a major increase in the number of U.S. adults who report symptoms of stress, anxiety and depression during the pandemic, compared with surveys before the pandemic. The stock market is in free fall, national parks are closing and Broadway is dark, and that's just in this country. It depends, right? The podcast series is an ideal resource for researchers, practitioners, and students in the behavioral and social sciences. I rest with some confidence that we are going to manage to get through this just like we have in all the other ones, that this one it is totally different. Our numbers predicted it; we were consistently hitting our goals.”. Many, but not all, of the offers and clickable hyperlinks (such as a “Next” button) that appear on this site are from companies that compensate us. For more information, see, How 4 Millennials Turned Pandemic Challenges Into Personal Success Stories, Federal Unemployment Benefits Are Ending Dec. 26. Common Resources During COVID-19 . Sure, well, I think if you had an overconfidence bias, chances are it's shaken up a little bit, which is probably good for you. Kim: In this video, Chelsea answers your questions about the coronavirus, anxiety, making sound financial choices in the midst of a crisis, and staying informed. Frankly, when I'm at the office working really hard, those roles aren't getting as much attention. Kim: Kim: We've had probably one of the longest growth periods in our economy in our history leading into this crisis situation in terms of the economy. Note: Percentages may not total 100 due to rounding. In addition to these options, 14% of total respondents chose “Other” and 30% chose “None of these.”. It's like, depending on the degree to which your self-esteem and your self worth is built into your job or your role, for example, when that is gone, it creates a crisis for many people like how do I get this need to feel productive, this need to feel like I'm doing something good in the world, that my social needs met, my connection needs met? That's speaking of psychology, all one-word @apa.org. Brad: Our guest today, Dr. Brad Klontz, is, I hope, going to help us better understand why we do what we do with money and how we can make some better decisions even as we deal with the rocky economy ahead. But the sectors of the economy that were hit the hardest, such as entertainment and travel, are expected to recover much more slowly. I'm your host, Kim Mills. Just understand this, don't trust your instincts around money. This is our natural tendency to believe that we're much better at things than we actually are. Speaker: I think psychologists are really well equipped to help people deal with anxiety. We want to help you make more informed decisions. It is absolutely totally different, we're not sure and that's the one thing that's consistent about these economic collapses is that uncertainty and that catastrophic thinking and those intense emotions of fear. There are opportunities built in here. In her 30+-year career in communications, Mills has extensive media experience, including being interviewed by The New York Times, The Washington Post, the Wall Street Journal and other top-tier print media. Now, you could use this experience to grow closer. In each episode, authors describe their findings, methodologies, and implications for future work. Given what the markets are doing right now, if people haven't done anything to shelter their money, is it too late or too precarious to move to cash right now for example? “There is a great question of equity and value that’s coming up right now,” says Amanda Clayman, financial therapist and financial wellness advocate for Prudential. For more information, please see How we make money. Sixty-one percent of younger millennials (ages 24–30) report feeling somewhat or very anxious about their finances, compared to 51% of respondents overall. For people who feel like they need professional help, particularly around money, anxiety, are there special places where they should go, are there particular types of psychologists who are better at helping than others? We knew a correction was coming, we knew this was going to happen. The call for submissions is now open. For more information, see How We Make Money. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. Kim: Or you got hit with an unexpected medical expense. This is what happens to human beings in terms of their finances. We're also starting off with less money and lower wages so we've got that disadvantage. Weeks or months of anxiety, ... symptoms of depression during the pandemic if they experienced “COVID-19 stressors,” including losing a job, the death of a loved one or financial distress. For many people who actually end up doing it, it can become a mental health crisis, and it's getting to some of what you're asking there. When it comes to financial decisions, however, those instincts are absolutely the wrong thing to do at every possible level. Thus, higher levels of job insecurity due to COVID-19 were related to greater anxiety symptoms at least in part because higher job insecurity due to COVID-19 is associated with greater financial concern. I would say so, but I'm also not trying to diminish the fear and the anxiety. “Even if that’s not a worry today, the anxiety about that happening next month or the month after is just as profound as for someone who doesn’t have money now. Dr. Klontz, thank you for joining us. For many people, what you realize is incredibly uncomfortable, perhaps quite painful, a lot of stress involved, but it's probably not going to kill you. Thank you again, Dr. Brad Klontz. There are other ways to connect with people, whether it's FaceTime or Skype or phone calls, find ways to connect with people that you love. He's also an associate professor practiced in financial psychology and behavioral finance at Creighton University in Omaha, Nebraska. You can find previous episodes of Speaking of Psychology on Apple, Stitcher, Spotify or wherever you get your podcasts. But New Jersey’s stay-at-home order forced the Braddocks to close their studio’s doors and move business to limited services they could offer virtually. We're going to get on the other side of this. If you pulled up a chart that looked at the last month or two or three, it's going to look like total catastrophe. Brad Klontz, PsyD, CFP So we have a natural tendency to want to jump on board and buy when things are super expensive, and then when things drop and our stock loses 30% in value, we have that fear response going the other way. To learn more, visit www.tms.apa.org. So where was the money, was it in his mattress? Kim: Brad: Nick Cosky is a Certified Financial Planner™ professional, and one of the owners of BDF LLC, an independent private wealth management firm in Chicago. There's very real health concerns and concern about that my health, my children's health, my family's health, so that's part of it, and I think that actually increases our level of anxiety. Like you've lost some income, maybe that income has led to you having to not enjoy some of the things you're able to enjoy or many people literally have lost vacations or they've lost their ability to produce. This led to a shift in beliefs, anxiety around money, and this is part of my story in learning my own psychology around money, but my grandfather had lost his money. Frankly, I want you to be much less confident in what you think you know to be true about investments and about markets, that's actually really healthy for you. Psychologists are actually extremely well equipped to help people with anxiety. A lot of us are defined by our jobs and also by the amount of money that we have or that we're earning. Think about on the other side of this looking back to who you are right now and what you're doing right now, and just try to build into that, how would you feel really good about how you went through this. Swiss Re COVID-19 Consumer Survey: Financial anxiety, demand for insurance products accelerates across APAC Article information and share options Published on: 29 Apr 2020 Estimated time to read this article: 10 min read Then the second thing I would say is yes, we need to socially isolate but don't actually do that. That's something that makes this crisis very different too because that typically psychologists would be telling you in moments like this, you need to get together with people you love, you need to spend time with people, don't socially isolate. Through March and April, Gabriella says their income dropped to 20% its usual rate, and May’s totals are expected to fall even lower. “There’s some authors in the financial therapy realm who talk about financial flash points,” Dunkle says. Speaking of Psychology is an audio podcast series highlighting some of the latest, most important, and relevant psychological research being conducted today. Speaking of Psychology: Coping with Financial Anxiety During COVID-19 with Brad Klontz, PsyD, CFP. The Christmas season can be one of financial stress for many, but this year that end-of-year stress has been amplified by the COVID-19 pandemic. It's all designed to protect us and save ourselves, so we have these baked in instincts for survival. Brad: Imagine a hoard of wild horses on the plane and something scary and they all run in one direction and then they run back in another direction. It's an exposure techniques, so if you went to see a psychologist because you had a fear of dogs, your sadistic psychologists would eventually want you to pet a dog. We are an independent publisher. To support our work, we are paid for providing advertising services. Unemployment applications have hit previously unimaginable highs. Many of these people are hourly or blue-collar workers, their jobs may never come back. When we're stuck on a rigid belief about how the world works, like, for example, my grandfather believing that you can't trust banks with your money, and I get why he got that belief, but when it's rigidly held, that's when it gets us into trouble. For weeks, the spread of this novel coronavirus forced the country, and the globe, to grind to a halt as stay-at-home orders and state of emergency declarations left millions of workers out of jobs and without the ability to make regular payments or achieve financial goals. It took months and months or even years to find a bottom where this one might have happened in a matter of a month or two. That would be built into the process, we would want to expose you to that fear. Even before the coronavirus struck, many of us were prone to do unwise things with our money. Have we hit the bottom? Fieldwork was undertaken June 1–3. The worst-case scenario exercises is built into this too because your brain is looking at what's happening in the economy as a life or death situation. “This year was going to be our six-figure year. She has appeared on CNN, “Good Morning America,” “Hannity and Colmes,” CSPAN and the BBC, to name a few of her broadcast engagements. The uncertainty around that and, basically, not knowing that answer, is part of what is making this such a difficult experience for so many Americans. And the advertised offers may be subject to additional terms and conditions of the advertiser. Yes, we actually looked at post-traumatic stress symptoms, and so yes, there's absolutely going to be post-traumatic stress that lingers. Brad: You sound, for the most part, pretty optimistic through it all. Fear and anxiety about a new disease and what could happen can be overwhelming and cause strong emotions in adults and children. During the COVID-19 pandemic, you may experience stress, anxiety, fear, sadness and loneliness. It employed a non-probability-based sample using both quotas up front during collection, then a weighting scheme on the back end designed and proven to provide nationally representative results. Covid-19 impact on mental health: Patients face insomnia, dementia, anxiety disorders, shows Lancet study Yes, maybe you got bit by a really nasty dog, so we wouldn't get a nasty dog that we wanted you to pet, but we would want you to imagine petting the dog, we'd want you to think about it because we'd want to cure this phobia you have. I think it's really important to know that you're not alone. Dr. Brad Klontz: You'll notice a pattern here, flexibility and thinking is really helpful when it comes to your relationship with money because times do change, circumstances change. Your job might be a little bit more secure if you're, perhaps in several ways, a college job or not, who knows? Total sample size was 2,562 U.S. adults (age 18+). Isn't this highly unusual? “There’s a level of uncertainty now, because we don’t know where the economy is headed,” Doe says. Are there exercises that people might be able to go through to help themselves get past some of these constructs, these mental constructs that are not helpful? You're going to be stuck at home, perhaps, stuck at home with people that you love. Even before the coronavirus struck, many of us were prone to do unwise things with our money. It is something that we're all going through together, so this is impacting people on the entire socioeconomic spectrum, so we're not alone in that sense. Brad: “We have dealt with loss of income, taken on more debt, and used our savings to make our usual payments,” Gabriella, 25, says. One of the problems we have as human beings and when it comes to investing is it's called a narrow frame of reference. We're wired to do the absolute wrong things, which are buy high and sell low. www.speakingofpsychology.org It's really important to know, though that your financial stress could kill you and there's been a lot of studies done on this.   Listeners will also hear expert analysis on developments in health care policy along with stories that highlight the work of fellow psychologists. I think a lot of our struggles within finances aren't technical. So, your actual offer terms from an advertiser. And the advertised offers may be subject to additional terms and conditions of the advertiser. This is an incredibly stressful time for many, many people on a very real level, very real psychological level, financial level. What, if anything, will the pandemic do to that very human tendency? We are wired to actually do great to survive a predator chasing us. There was a significant indirect effect of job insecurity due to COVID-19 on anxiety symptoms through financial concern (b = 0.19, 95% CI [0.09, 0.33]). All information is presented without any warranty or guarantee to you. Are you worried about your financial future in the face of the COVID-19 pandemic? Klontz has a passion for helping individuals and families understand their views on money and to assist them throughout their financial transformation by providing ongoing guidance and financial planning. “They’re stressed about their current situation, but then there’s no clear path as to how to get out of it, because we don’t know where the economy’s going to go or when jobs will return.”. In time, these symptoms can worsen and eventually contribute to more persistent anxiety or depression. What should we be doing with our money if we still have any? The daily anxiety feels all too real, amplified by the international COVID-19 pandemic. The other opportunity that's happening here too, is more and more telehealth opportunities are being presented. Basically, it goes like this, so let's say you're worried about losing your job. Whatever your situation, there are steps you can take to avoid obsessing over bills or sweating through payments. While many Americans are feeling more anxious regarding the overall state of their finances, specific worries don’t just involve employment loss, but also lack of savings and mounting debts as well. . “It can build and build and build unless we take steps to try and take care of ourselves so that we can better handle the uncertainties and fears.”.   Where is the economy headed? FINANCIAL STRESS AND COVID-19: COPING TIPS Practice acceptance. More 18- 24-year-olds are anxious about careers as coronavirus hits jobs and mental health. You must check the box to agree to the terms and conditions. Progress Notes is a podcast with practicing psychologists in mind. Actually, we thought it was going to happen much earlier. For example, if you pull up a chart of the Dow Industrial average or the S&P 500, these are indexes that track the stock market. Brad: This is a challenging time because many of us are losing our ability to engage well socially, we're actually being told not to socialize. Regardless of your opinions about how the government is approaching this and those very wildly and you're welcome to them, it does give us some comfort to see that our government is taking this serious and looking for ways to try to help people out with these unprecedented stimulus packages and trying to find ways to support the average American through this crisis. It turns out that they actually are better at investing as a result, so they actually have better returns by having less confidence in knowing exactly what's going to happen in the future so. Kim: “Now, we’re going to be lucky to make the same amount that we did last year,” she says. Young baby boomers approaching retirement (ages 56–65) as well as members of Generation Z (the youngest adults, ranging from ages 18–23) are the age groups most likely to report their personal financial situation as negatively impacted (36% and 33%, respectively). That was being brought into the therapy room. “Never” indicates respondents who do not expect the economy will return to normal. When the UK’s lockdown began, nearly half of people experienced “high” anxiety, according to the Office for National Statistics , particularly the self-employed and those renting. This moment in time and the uncertainty it brings is a turning point, both personally and systemically, experts say. Of course, you're going to have bumps in the road, you're going to be stressed, you're going to have down days, absolutely. The economy, and its workers, will take time to bounce back from the economic recession caused by the coronavirus, which officially began in February. You probably have some time at home, I think it's a useful exercise. Kim: See privacy policy. We invite you to read Ken's latest ADAA COVID-19 blog post: Flatten the Fear with Facts: What is an Appropriate Level of COVID-19 Worry and the Steps You Can Take to Reduce Anxiety During this time of national crisis, we must manage two things simultaneously: 1) Protect ourselves from the Coronavirus, and 2) Protect ourselves from anxiety. I believe that there are two sides of reality here and one is very painful and the other is there's tons of opportunity. And while lender assistance and relief programs have provided help in the short term, questions about long-term, sustainable solutions remain. It's that fight-flight-freeze response. Kim: Millions of Brits are coping with stress and anxiety as they deal with the ongoing coronavirus pandemic, as well as the economic fallout as a result of COVID-19. Every time you take your kid into get shots when they're a baby, each one of those shots represents a pandemic that has happened like this that has had a profound effect on humanity, so we've dealt with this over time. But many economists are optimistic with the beginnings of recovery across the country as businesses reopen and economic activity returns, even predicting we could already be moving into stages of economic expansion. Now that we’re in the middle of a pandemic, more people than ever are experiencing anxiety, especially those who struggled with mental health issues before COVID-19. Back in 2008, and if you can imagine back to 2008, and this is a really helpful exercise, chances are if you were around and paying attention back then you had some catastrophic thinking going on. I really appreciate your joining with us today. What kinds of emotions are people experiencing right now from the impact of the coronavirus? CNBC: How is the financial fallout from coronavirus pandemic affecting people's mental health? Mental Health/ Stress/Anxiety Support Safer at Home Get Tested. “Those parts of the economy will be challenged until people feel really safe again,” Jerome Powell, chairman of the Federal Reserve, said in an interview with “60 Minutes” in May. Greece too that looked at post-traumatic stress symptoms, and the fact is, historically the! Psychologists, health-care workers and the fact is, it 's a useful exercise I do. 'S working really well highlight the work of fellow psychologists not life-threatening do you wish had! S completely all right, and relevant Psychological research being conducted today join us at APA 's technology and. Doing right now, all of a sudden, you just keep going down the path: actually, need... And save ourselves, so research bears that out year was going to be over soon strategies help... 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