How financial difficulties undermine relationships & the way out. How a tenuous economy and uncertain future is impacting romance in America and navigating uncertainty.
Talking about financial hardships isn’t exactly anyone’s idea of a good time, but it’s necessary. Why? Because it affects more of us than we’d like to admit. In 2022, the U.S. saw its unemployment rate dip to 3.7%, a substantial improvement from the staggering 14.7% in April 2020. This drop signals recovery, yet it doesn’t tell the full story of what’s happening behind closed doors.
Why This Conversation Needs to Be Had
Now, you might be wondering why we’re talking about the gloomy depths of financial hardships. Here’s the answer: because it’s affecting a staggering number of people, and brushing it under the rug isn’t going to make it go away. Let’s look at the cold, hard numbers:
- The unemployment rate in the U.S. was 3.7% in 2022, a considerable drop from the 14.7% peak in April 2020. This improvement masks the ongoing struggles many still face.
- In the same year, 28% of U.S. adults were blindsided by major unexpected medical expenses, throwing their finances into disarray.
- The poverty rate for single-mother families stood at 22.8% in 2021, highlighting the financial vulnerability of this demographic.
- According to a 2023 survey, a whopping 70% of Americans reported feeling financially stressed, with 52% stating their financial stress has spiked since before the pandemic.
- Financial disputes were the root cause of conflict in 35% of romantic relationships as of a 2019 study.
- A 2012 study revealed couples with no assets at the beginning of their marriage had a 70% higher divorce rate within three years compared to those with $10,000 in assets.
These figures represent real people facing real struggles. This conversation is necessary because understanding the scope of the problem is the first step toward addressing it. Financial hardship has a domino effect on relationships, mental health, and even the well-being of children.
Broad Scope of Things
For starters, job loss is just the tip of the iceberg. It’s a major player, sure, but it’s not acting alone. Unexpected expenses are constantly lurking around the corner. Think medical bills, home repairs, or your car suddenly deciding it’s had enough. In 2022, 28% of adults in the U.S. were hit with major unexpected medical expenses. And then there’s divorce or separation, especially for single parents, where the poverty rate for single-mother families was sitting at 22.8% in 2021. Let’s not forget the silent but deadly role of lack of financial literacy and poor money management skills.
Now, let’s talk about the effects on relationships. Money is a touchy subject, and it’s been wreaking havoc on romantic relationships and mental health. With 70% of Americans feeling financially stressed in 2023, and 52% feeling more stressed than before the pandemic, it’s no wonder that financial issues were at the heart of conflicts in 35% of romantic relationships in 2019. Financial stress is a leading predictor of divorce and a catalyst for mental health issues like depression and anxiety.
The Strain on Mental Health and Relationships
This is where things get even more serious. The impact of financial hardship on mental health and relationships is profound. Financial stress leads to a vicious cycle of mental health issues, which in turn can put additional strain on relationships. It’s a mess. Couples who start their marriage with no assets are 70% more likely to call it quits within three years compared to those with a bit of a financial cushion.
In the midst of all this chaos, people are looking for stability, and sometimes, finding a rich guy can’t be a solution for a sense of security in an unstable financial landscape. It’s an attempt to find some footing when everything else seems to be crumbling.
Children are not immune to the effects of financial hardship either. They’re more likely to encounter behavioral problems, lower academic achievements, and poorer physical health. This is a cycle that, if not addressed, will perpetuate into the future, affecting generations to come.
The Way Forward
So, where do we go from here? Acknowledging the problem is the first step. From there, it’s about education, communication, and seeking support when needed. Financial literacy should be a priority, not an afterthought, in both our personal lives and the education system. Couples need to have open and honest conversations about money, setting realistic expectations and goals. And for those facing financial hardships, seeking support from financial advisors or counselors can be a game-changer.
