For many Arkansans, financial struggles can lead to stress or sometimes embarrassment. Here’s a closer look at the psychology behind affordability and mental health.

LITTLE ROCK, Ark. — Inflation, prices, and the economy are topics that come up every time we have an election, but for many people, they’re at the top of mind year-round.

This is despite the fact that the economy is doing well right now, according to Jeremy Horpedahl, an associate professor of economics at the University of Central Arkansas. He said that by all the official metrics, the economy is in decent shape.

“Unemployment is at almost the lowest it’s ever been,” Horpedahl said. “Wages are continuing to grow, even though prices are going up. In general, wages have been outpacing price increases.”

Yet, he acknowledges that the average American doesn’t seem to feel that way.

“If you look at consumer sentiment about the economy, and how people feel about it, it’s actually kind of the worst it’s been,” Horpedahl said. “Equal to what it was in the depths of the pandemic.”

He mentioned layoffs and uncertainty about things like AI and tariffs as possible reasons; plus, less confidence equals less spending.

“If people are uncertain, they’ll spend less money,” Horpedahl said, “And if they’re spending less money, then that’s going to lead to less job creation and less economic activity. So, I think sometimes it becomes a little bit of a self-fulfilling prophecy.”

Regardless of whether wages or inflation are going up or down, Adam Dodd, a social worker at the University of Arkansas for Medical Sciences, knows what he means since a large percentage of his patients are struggling financially.

“I would say just kind of off the top of my head, 60-70% of clients report affordability issues that ultimately impact their mental health,” Dodd said.

That’s something Gary Winkler, who lives in Pulaski County and teaches at Pulaski Technical University, struggles with.

He teaches part-time, which means he spends roughly four months of the year without a paycheck, including a recent two-month period.

“I’ve been off contract,” Winkler explained. “So, I don’t have a paycheck from December 15 to February 15. I [also] suffer from bipolar disorder and anxiety disorder.” 

Winkler, who lives in an RV with his service dog, usually saves up to pay for these time periods.

 “I always put $100 a paycheck in savings,” Winkler said. “That way I have some left over from the summer months.”

But this year, his dog hurt his back, his car wouldn’t start, and the brakes stopped working. His total cost of repairs and vet bills was $1,800.

“That totally wiped out my savings,” Winkler said. “So, I had to borrow money from a relative.”

He said that this financial stress often manifests itself as things like panic attacks, as well as deep embarrassment.

“Sometimes I feel like a failure because I can’t manage it on my own,” Winkler said. “I’m also on SNAP, and so sometimes I get embarrassed if I go into the store and have to use the food stamp card.”

However, Dodd said those feelings are normal.

“There is a stigma associated with financial stress that a lot of people experience,” Dodd said, “Which ultimately leads to more mental health-related issues.”

That can lead to one of the most damaging positions a person can be in, as we learned during the pandemic, which is isolation.

“It’s very hard for that person to admit that they may not be able to do certain things because of the cost,” Dodd said, “And so this often tends to cause people to isolate from other people.”

With financial struggles also come difficult choices, which can lead to more stress. Dodd said in a lot of cases, people often can’t afford the mental help they need.

“It’s either I can seek help or get groceries this week,” Dodd described.  

“$20 is a tank of gas,” Winkler added. “$20 is four days on my prepaid electric. $20 is two-thirds of my phone bill. So, it’s like, ‘Okay, do I want McDonald’s, or do I want to have electricity for four days?”

Dodd said that despite these pressures, you need to have compassion for yourself if you’re struggling. Additionally, community resources and having empathy for each other are key.

It’s especially important because, unfortunately, these problems probably aren’t going away.

“People have this feeling that these prices we experienced in the past may never be coming back,” Horpedahl said. “I think that makes a lot of people pessimistic about the economy.”

In a recent study from the U.S News and World Report, Arkansas ranked first in affordability among all fifty states. The state also ranked 47th in average household income.