The Silent Burden: 1 in 3 Americans Still Haunted by Financial Mistakes

Money mistakes are a financial burden that most people would rather not discuss. That’s because these missteps don’t just drain bank accounts — they also leave lasting emotional scars. So much so that they can haunt and shape future financial decisions.

In a new BadCredit.org study, nearly a third of Americans admitted to carrying shame over past financial mistakes and to the emotional impact it had on their present financial decisions.

As we enter Mental Health Awareness Month, we’d like to highlight that, though financial shame often goes under the radar, it carries real emotional consequences for millions of Americans.

Our study results reveal that financial shame isn’t just a temporary feeling and can influence how consumers manage their money in the long term.

Money conversations have long been stigmatized as a social taboo. Personal finances are not the typical subject you would broach at the dinner table or over lunch with coworkers.

So it’s no surprise that financial shame has become a silent burden for many Americans — one that quietly impacts their financial decision-making and emotional health. 

But who suffers from financial shame the most? Our survey explores this by demographic splits based on age, race, and income trends.

When asked about lingering financial shame, Gen Z (34%) and millennials (32%) reported feeling the most shame over their money mistakes, while Gen X (27%) reported slightly lower numbers. 

However, there was a sharp dropoff among boomers, with only 17% of respondents expressing shame and regret, suggesting the presence of less financial pressure or fewer money missteps for the older generation.

“The generational differences this survey identified are both fascinating and surprising”, said Erica Sandberg, consumer finance expert at BadCredit.org. “Gen Z is definitely shouldering the emotional burden. Since they’re the younger set, though, they are still learning how to manage their financial affairs, and mistakes are normal.” 

Numbers also varied among races. Hispanic Americans (38%) were far more likely to carry financial shame than Black (29%) and White (27%) respondents. Middle Eastern and North African (MENA) respondents also saw high rates, but the sample size may affect reliability. 

Below are the totals for each racial group:

• Hispanic: 38% 
• Black: 29%
• White: 27%
• Asian: 23%
• American Indian: 14%
• MENA: 50% 

As for income thresholds, shame exists consistently across the board. Our findings proved that, regardless of their earnings, anyone can experience regret due to financial mistakes, hinting at broader societal pressure rather than just financial hardship. The following numbers show how annual income brackets compare:

• Under $25K: 31%
• $25K – $49.9K: 29%
• $50K – $74.9K: 26%
• $75K – $99.9K: 31%
• $100K – $124.9K: 26%
• $125K+: 26%

Though financial shame isn’t often discussed, our survey results reveal just how common an experience it is for Americans.

Regret resulting from financial mistakes can take an incredible toll on physical and emotional well-being, showing why financial wellness needs to be promoted just as much as other aspects in the broader mental health conversation.

These findings present an opportunity for mental health professionals to increase awareness of how financial mistakes can impact both emotional and financial health, helping people break free from shame. 

Money mistakes. We’ve all made them. And the ensuing regret can be just as painful on our conscience as it is on our bank accounts, shaping how we approach money for the time ahead. 

Unfortunately, with the economic climate spiraling, the consequences and pressure from financial missteps may seem more dire than before. So, what can consumers do to avoid financial regret? Well, they can start by learning what the most common mistakes are. 

Our survey found that respondents felt the most shame after committing these three typical money mistakes:

• Overspending on non-essentials (65%)
• Taking on too much debt (59%)
• Missing a bill or loan payment (49%)

Though these missteps mirror classic financial advice, they still fall through the cracks for many people, leaving consumers with emotional fallout that can linger longer than their balances.

Sandberg adds, “It’s important to feel regret when you have spent or borrowed money in detrimental ways. It’s an internal message telling you not to do the same again, and a prompt to take positive action. But deep shame won’t help, and can even stop you from moving forward. If you don’t believe you can do better, you may stop trying.” 

Financial shame isn’t partial to any one group of people. Conversely, it is a shared human experience that stems from common money mistakes, not just personal failures.

The journey to financial recovery starts with not only taking practical steps to rebuild credit but also healing the emotional wounds tied to money. So past regrets can be put to bed and stop haunting future decisions. 

This survey was conducted among 1,000 U.S. adults to explore financial behavior, emotional responses to past money decisions, and perceived financial mistakes.

Respondents answered questions about shame, regret, and the emotional impact of common financial missteps such as overspending, debt accumulation, and missed payments.

The data was collected online without the use of demographic quotas. Findings provide insight into how financial shame varies across age, race, income, and regional lines, and how emotional experiences influence future financial decision-making.

The margin of error for proportions is approximately ±3.1 percentage points for the total sample. All results reflect a 95% confidence level.