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| Pandemic Has Increased Money Anxiety. Therapists Hope to Cure That. | Pandemic Has Increased Money Anxiety. Therapists Hope to Cure That. |
| (about 16 hours later) | |
| Dale Mackey closed her event space in Knoxville, Tenn., a week before the state issued its orders to end large gatherings. She did not think about the economic ramifications of shuttering her business, the Central Collective; she said it was the right thing to do to reduce the spread of the virus. | Dale Mackey closed her event space in Knoxville, Tenn., a week before the state issued its orders to end large gatherings. She did not think about the economic ramifications of shuttering her business, the Central Collective; she said it was the right thing to do to reduce the spread of the virus. |
| Work dried up for her husband, Shawn Poynter, a photographer, so to help make ends meet, Ms. Mackey began spending more time on a side business, making sweet and savory pies and selling them online. She and her husband are in their mid-30s and have some savings and no debt beyond mortgages on their home and the event space, so they were content hunkering down. | Work dried up for her husband, Shawn Poynter, a photographer, so to help make ends meet, Ms. Mackey began spending more time on a side business, making sweet and savory pies and selling them online. She and her husband are in their mid-30s and have some savings and no debt beyond mortgages on their home and the event space, so they were content hunkering down. |
| But as the weeks wore on, thoughts of financial anxiety began to emerge. | But as the weeks wore on, thoughts of financial anxiety began to emerge. |
| “It’s much more of a struggle for me about when we can reopen,” Ms. Mackey said, adding that the uncertainty began to weigh on her. “It’s different if I knew we were going to be opening in three months.” | “It’s much more of a struggle for me about when we can reopen,” Ms. Mackey said, adding that the uncertainty began to weigh on her. “It’s different if I knew we were going to be opening in three months.” |
| In this financial crisis, many Americans are facing increased stress about money. But Ms. Mackey turned to a solution that few people try: She sought a financial therapist, a professional trained to counsel people about their money woes. Most have advanced degrees in psychology or clinical social work. | In this financial crisis, many Americans are facing increased stress about money. But Ms. Mackey turned to a solution that few people try: She sought a financial therapist, a professional trained to counsel people about their money woes. Most have advanced degrees in psychology or clinical social work. |
| Ms. Mackey found Amanda Clayman, a financial therapist in Los Angeles who has a podcast on financial therapy within WNYC’s Death, Sex and Money franchise. | Ms. Mackey found Amanda Clayman, a financial therapist in Los Angeles who has a podcast on financial therapy within WNYC’s Death, Sex and Money franchise. |
| “When you bring up the topic of financial therapy, people are like, ‘That’s me, I want help,’ or their level of defensiveness is so intense,” said Ms. Clayman, who puts people on the proverbial couch for her podcast, “Financial Therapy With Amanda Clayman,” which was introduced this week. | “When you bring up the topic of financial therapy, people are like, ‘That’s me, I want help,’ or their level of defensiveness is so intense,” said Ms. Clayman, who puts people on the proverbial couch for her podcast, “Financial Therapy With Amanda Clayman,” which was introduced this week. |
| The pandemic is an ideal time to lay bare people’s psychological struggles around money, she said, because the financial fallout from closing the U.S. economy for months is far from certain. Add to that the guesswork around how lockdown orders may have changed consumer spending habits. | The pandemic is an ideal time to lay bare people’s psychological struggles around money, she said, because the financial fallout from closing the U.S. economy for months is far from certain. Add to that the guesswork around how lockdown orders may have changed consumer spending habits. |
| “This pandemic is like a black light,” Ms. Clayman said. “It’s suddenly revealing all the things that were present before but unseen.” | “This pandemic is like a black light,” Ms. Clayman said. “It’s suddenly revealing all the things that were present before but unseen.” |
| Interest in financial therapy rose after the 2008 recession. Therapists tried to help people parse the stress they were feeling as they navigated a financial crisis that destroyed 8.7 million jobs. | Interest in financial therapy rose after the 2008 recession. Therapists tried to help people parse the stress they were feeling as they navigated a financial crisis that destroyed 8.7 million jobs. |
| A few years into the recovery, Kansas State University, which runs a leading undergraduate program for financial planning, started a financial therapy clinic to study people’s emotions around money. With electrodes attached to their bodies, participants had their responses measured during a series of financial discussions. (When I participated in 2012, the results showed that I was far more anxious talking even generally about my financial situations than I thought.) | A few years into the recovery, Kansas State University, which runs a leading undergraduate program for financial planning, started a financial therapy clinic to study people’s emotions around money. With electrodes attached to their bodies, participants had their responses measured during a series of financial discussions. (When I participated in 2012, the results showed that I was far more anxious talking even generally about my financial situations than I thought.) |
| Despite the interest, the field of financial therapy remains nascent. Besides Kansas State, Creighton University in Omaha has a financial therapy program. But none of the major financial services firms have anything approaching full-scale financial therapy for the majority of their customers. The nature of such therapy is beyond the training of most financial advisers. It’s also an area fraught with risk for an industry that is paid on the advice it gives for the assets it manages. | Despite the interest, the field of financial therapy remains nascent. Besides Kansas State, Creighton University in Omaha has a financial therapy program. But none of the major financial services firms have anything approaching full-scale financial therapy for the majority of their customers. The nature of such therapy is beyond the training of most financial advisers. It’s also an area fraught with risk for an industry that is paid on the advice it gives for the assets it manages. |
| But now is the time to engage, because Americans are going to emerge from the coronavirus recession emotionally scarred in a way similar to the military veterans who suffer from post-traumatic stress disorder, said Brad Klontz, a financial psychologist in Boulder, Colo., and a pioneer in the field of financial therapy. | But now is the time to engage, because Americans are going to emerge from the coronavirus recession emotionally scarred in a way similar to the military veterans who suffer from post-traumatic stress disorder, said Brad Klontz, a financial psychologist in Boulder, Colo., and a pioneer in the field of financial therapy. |
| “We’re experiencing a mass trauma across the United States, if not the world,” Dr. Klontz said. “Our illusion that we’re safe has been shattered. It’s like a psychological earthquake.” | “We’re experiencing a mass trauma across the United States, if not the world,” Dr. Klontz said. “Our illusion that we’re safe has been shattered. It’s like a psychological earthquake.” |
| He is optimistic, though, that people can use this experience to think more deeply about their financial values. “It’s been a forced wake-up call for everyone in the world,” he said. “We have just been offered a crisis to give us an opportunity to think about money.” | He is optimistic, though, that people can use this experience to think more deeply about their financial values. “It’s been a forced wake-up call for everyone in the world,” he said. “We have just been offered a crisis to give us an opportunity to think about money.” |
| At home in Knoxville, Ms. Mackey said she was coming to terms with the loss of security she had gained in the past two years. “I was in my groove, and I was pretty content,” she said. “I was working a reasonable amount, earning a reasonable amount, able to take some time off of work here and there.” | At home in Knoxville, Ms. Mackey said she was coming to terms with the loss of security she had gained in the past two years. “I was in my groove, and I was pretty content,” she said. “I was working a reasonable amount, earning a reasonable amount, able to take some time off of work here and there.” |
| Now. she said. she is worried about finances as Tennessee gradually reopens. By next month, when event spaces are allowed to be open at 50 percent capacity, her venue could be up and running, a prospect that would be good financially for her, though she’s wrestling with it because of safety issues. | Now. she said. she is worried about finances as Tennessee gradually reopens. By next month, when event spaces are allowed to be open at 50 percent capacity, her venue could be up and running, a prospect that would be good financially for her, though she’s wrestling with it because of safety issues. |
| “It’s going to be dicey if you can be open, but we don’t think it’s safe to do so,” Ms. Mackey said. “That’s when it gets complicated. You have all these contracts to fulfill.” | “It’s going to be dicey if you can be open, but we don’t think it’s safe to do so,” Ms. Mackey said. “That’s when it gets complicated. You have all these contracts to fulfill.” |
| She found her financial therapy session helpful because it allowed her and her husband to talk openly about their financial anxieties. “I didn’t realize I have an emotional relationship to money until we started talking and I realized I’m scared or uncomfortable about it,” she said. | She found her financial therapy session helpful because it allowed her and her husband to talk openly about their financial anxieties. “I didn’t realize I have an emotional relationship to money until we started talking and I realized I’m scared or uncomfortable about it,” she said. |
| As in most therapy, there was no clear-cut resolution, but the exercise itself was beneficial. “It’s the uncertainty piece that is much harder for me,” Ms. Mackey said. “It’s harder to plan when you can’t say, ‘OK, I know this business will be closed for three months or one year.’” | As in most therapy, there was no clear-cut resolution, but the exercise itself was beneficial. “It’s the uncertainty piece that is much harder for me,” Ms. Mackey said. “It’s harder to plan when you can’t say, ‘OK, I know this business will be closed for three months or one year.’” |
| Another guest on the podcast, who requested anonymity for privacy concerns, said the economic crisis had shaken his faith in his ability to provide for his family. It also called into question seemingly rational decisions he had made when he quit his job and started a marketing consultancy in a different city. The business was doing well until the economy shut down. | Another guest on the podcast, who requested anonymity for privacy concerns, said the economic crisis had shaken his faith in his ability to provide for his family. It also called into question seemingly rational decisions he had made when he quit his job and started a marketing consultancy in a different city. The business was doing well until the economy shut down. |
| Updated June 16, 2020 | |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “The control of money for me is really foundational for who I am,” the guest said in an interview afterward. “Now, I’m not in control, and I cannot be in control. I had to swallow it a few times before I could say that out loud.” | “The control of money for me is really foundational for who I am,” the guest said in an interview afterward. “Now, I’m not in control, and I cannot be in control. I had to swallow it a few times before I could say that out loud.” |
| He said he realized through the therapy session that he could be emotionally distant when talking about money. That realization has lifted some of the burden around earning money. | He said he realized through the therapy session that he could be emotionally distant when talking about money. That realization has lifted some of the burden around earning money. |
| This crisis is an opportunity for people to allow themselves to be angry that forces beyond their control have disrupted plans they thought they had made wisely, Ms. Clayman said. | This crisis is an opportunity for people to allow themselves to be angry that forces beyond their control have disrupted plans they thought they had made wisely, Ms. Clayman said. |
| “Sometimes, we just need to be angry and settle down and say, ‘This is why I made these choices,’” she said. “It’s our opportunity to come back to some of the emotional or psychological baggage we were carrying and re-choose some of the choices we make.” | “Sometimes, we just need to be angry and settle down and say, ‘This is why I made these choices,’” she said. “It’s our opportunity to come back to some of the emotional or psychological baggage we were carrying and re-choose some of the choices we make.” |
| The concern that financial therapists have now is that people will get stuck in what is known as catastrophic thinking. “Listen for those thoughts that come up in our head that say things like it’s pointless to invest your heart and soul in something because it can just be taken away,” Ms. Clayman said. “Or the thought that says, ‘This is all on my shoulders, and I can’t depend on anybody.’” | The concern that financial therapists have now is that people will get stuck in what is known as catastrophic thinking. “Listen for those thoughts that come up in our head that say things like it’s pointless to invest your heart and soul in something because it can just be taken away,” Ms. Clayman said. “Or the thought that says, ‘This is all on my shoulders, and I can’t depend on anybody.’” |
| She said people should allow themselves to get angry but then begin to address the underlying feelings they have with money that anger often masks. | She said people should allow themselves to get angry but then begin to address the underlying feelings they have with money that anger often masks. |
| Planning for the worst-case scenario allows most people to understand that they will survive, Dr. Klontz said. Those who have been financially traumatized, particularly children and young adults whose education has been disrupted, could get stuck in a fear-based mentality, akin to what many in the Great Depression generation carried with them. | Planning for the worst-case scenario allows most people to understand that they will survive, Dr. Klontz said. Those who have been financially traumatized, particularly children and young adults whose education has been disrupted, could get stuck in a fear-based mentality, akin to what many in the Great Depression generation carried with them. |
| Now is when the stories we tell ourselves become critical. “Money is a concrete thing that we use for practical purposes, but we cannot separate the concrete part from the meaning point,” Ms. Clayman said. “That’s not a choice we can make. We can avoid it, but that doesn’t make it go away.” | Now is when the stories we tell ourselves become critical. “Money is a concrete thing that we use for practical purposes, but we cannot separate the concrete part from the meaning point,” Ms. Clayman said. “That’s not a choice we can make. We can avoid it, but that doesn’t make it go away.” |
| After all, she said, “we’re human beings, and our brains are set up to understand the world in stories.” | After all, she said, “we’re human beings, and our brains are set up to understand the world in stories.” |
| Which ones we remember from this crisis will be important in determining what our financial lives look like going forward. | Which ones we remember from this crisis will be important in determining what our financial lives look like going forward. |