A new Texas A&M University study published in the Journal of Business and Psychology finds that even small financial changes can make a big difference in how stressed people feel.
“Financial stress has hills and valleys as you move through the month or maybe even the week,” said Dr. Ian Hughes, assistant professor in the Department of Psychological and Brain Sciences at Texas A&M University. “It seems like financial stress is something that moves, at least to some degree.”
Researchers tracked more than 300 workers and found that modest boosts in income or small reductions in expenses eased stress almost as much as major bonuses.
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They also found a level of "cognitive acceptance" when people went over budget on necessary expenses.
The study suggests that managing everyday spending may be just as important as earning more money.
“Simply getting paid what you’re used to getting paid does not have an impact on your stress; how you use that money does,” Hughes said.
Dr. Hughes emphasized that while financial planning is beneficial, employers can also support financial wellness through initiatives such as bonuses and debt consolidation programs, helping reduce employees' financial stress levels.
