Why Americans Spend Almost 4 Hours a Day Thinking About Money
Money takes up more brain space than most of us realize. A new study by financial services firm Empower reveals that the average American spends 4 hours a day thinking about finances, which is almost the same as working a part-time job. For younger generations, that number climbs to nearly 5 hours. This constant focus is changing the way people live, work, and plan for the future.
Gen Z and Millennials lead the pack in money-related thoughts. Gen Z clocks 4.82 hours a day, while Millennials are close behind at 4.73. Rising housing costs, student debt, and job stability are big triggers for this mental load. Boomers, averaging 2.4 hours, tend to focus more on retirement savings than on day-to-day costs.
Why We Can’t Stop Thinking About Money
David / Pexels / Thinking about money this much takes a toll. 36% of people say they lose sleep over financial worries, and for Millennials, that number jumps to 44%.
The study shows our top financial concerns are far from small. Bills weigh on 57% of Americans. Inflation follows closely at 51%, pushing prices higher for everything from groceries to gas. Housing costs bother 34%, and debt eats at 34%. This constant mental tally keeps people in a loop of financial worry.
Retirement also looms large. Over half of Americans think about it every week, and more than a quarter think about it every single day. Boomers tend to worry about preserving what they have saved, while younger generations worry about whether they will even be able to retire at all.
Sleep is not the only thing affected. 38% say money stress strains their relationships, turning dinner table conversations into budgeting discussions. Rising costs, economic shifts, and unpredictable job markets make money feel like a moving target. That constant sense of instability is hard to shake.
However, not all of this mental energy goes to waste. In fact, 45% of people say they have used their financial stress as motivation to take action. That includes setting stricter budgets, paying down debt, and finding ways to save more. The shift from passive worry to active problem-solving is a positive sign.
Many people are taking small but meaningful steps. Some have cut back on dining out, trimmed non-essential spending, or canceled travel plans. These changes may not solve everything overnight, but they free up extra cash and give people a sense of control.
Helena / Unsplash / Per the study, 18% said a detailed financial plan would reduce their stress. For Gen Z, that number jumps to 25%, showing a hunger for structure and guidance.
What People Think Will Help?
When asked what would make them feel better about their money, 47% pointed to higher income. Another 45% said lower living costs would ease the pressure. These are big-picture fixes, but some believe smaller, more personal steps could help.
Budgeting apps, automated savings, and even basic spreadsheets are becoming essential tools for keeping stress in check.
The pressure on wallets is already changing habits. More than half of Americans have reduced dining out. 46% have scaled back on non-essential spending, and nearly four in ten have canceled or delayed travel plans. These sacrifices show just how closely money decisions are tied to lifestyle choices.
For many, the cutbacks are part of a bigger strategy to free up funds for savings or debt repayment. The short-term trade-offs are difficult, but they can lead to long-term stability.