Sleepless Over the Economy: How Recession and Tariff Fears Are Affecting Americans’ Rest

Between rising prices, layoff fears, and constant economic headlines, it’s getting harder for many people to sleep well. We asked over 1,000 Americans how money stress is affecting their rest, and it turns out a lot of us are losing sleep over it.

Younger adults are feeling it the most, but across all ages, people are tossing, turning, and waking up in the middle of the night with money on their minds.

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The Economy Is Keeping Us Awake

When money feels tight, sleep often takes a hit. More and more people are finding it hard to relax at night as financial worries creep in and keep their minds racing.

Nearly half of Americans (49%) said they lie awake at night due to financial concerns like inflation and layoffs. Almost as many (47%) said their sleep has worsened specifically since tariff discussions began in 2025.

Gen Z respondents were the most likely to lose sleep over job security (47%), compared to millennials (38%) and Gen X (35%). Gen Z also topped concerns over housing and rent costs (47%), suggesting that money worries are hitting this generation the hardest at night.

What Money Worries Are Doing to Our Sleep

Worrying about money doesn’t just make it harder to fall asleep. It also messes with how we sleep, from middle-of-the-night wakeups to restless mornings. And for a lot of people, those stress habits are becoming part of their nightly routine.

Sixty-four percent of Americans admitted to lying awake in bed thinking about money, with Gen Z being the most likely to do so (69%). Nearly half (47%) said financial stress has woken them up in the middle of the night, proof that money problems don’t always wait for morning.

More than 1 in 10 Americans (11%) dealing with financial sleep stress were now averaging fewer than 5 hours of rest per night. Among those who checked their bank account before bed, that number jumped to 13%. This habit may offer short-term reassurance, but it’s making restful sleep even harder to come by.

News about the economy is also a culprit. Half of Americans said they’ve lost sleep after reading economic headlines. Millennials and Gen X tied at 49%, while 46% of Gen Z reported the same issue.

As for when these worries strike most, the top responses were evenly throughout the day (36%) and just before bed (25%). A smaller yet significant number said their financial anxiety peaks in the middle of the night (16%) or during the workday (16%), while 8% worried most early in the morning after waking up.

How People Are Dealing With Financial Stress at Night

Everyone has their own way of handling stress, but not all coping strategies help encourage better sleep.

For many, screens are the go-to escape when their minds are fixated on economic worries. More than half of Gen Z (57%) reported scrolling social media when money thoughts keep them awake, which was the highest of any age group. Watching TV also ranked high among Gen Z (47%), Gen X (46%), and millennials (44%).

One unique trend among younger adults is “bed rotting,” or staying in bed for extended periods without a specific purpose. Over one-third of Gen Z (37%) said they use this behavior to deal with financial stress.

It might feel comforting at first, but it can throw off your sleep rhythm and leave you feeling more tired later. We’ve looked at the effect a similar practice of hurkle durkle can have on your day.

FAQs

How do you sleep when worried about money?

Financial stress can make your mind race at bedtime, but establishing a “worry window” earlier in the day can help – spend 15-20 minutes writing down your concerns and potential solutions, then remind yourself you’ve already addressed them when they resurface at night.

Create a calming bedtime routine that signals to your brain it’s time to rest, such as reading, gentle stretching, or listening to soothing music or podcasts.

Practice deep breathing exercises or progressive muscle relaxation when you get into bed, focusing on releasing physical tension that often accompanies financial anxiety.

How can I stop doom scrolling on my phone before bed?

Set a specific “phone curfew” at least one hour before your intended bedtime (maybe earlier if you’re sleeping with neurodiversity and need more time to wind down) and physically place your device in another room or use airplane mode to remove temptation.

Replace the scrolling habit with a more calming activity like reading a physical book, journaling, or doing gentle stretches. Your brain needs something to fill that time rather than just eliminating the behavior.

Consider using your phone’s built-in screen time controls or apps that block social media during evening hours, and charge your phone outside the bedroom so you’re not tempted to reach for it if you wake up during the night.

How can I feel more confident in my finances?

Start by creating a complete picture of your financial situation. Track your income, expenses, debts, and savings for at least a month so you know exactly where you stand rather than operating on assumptions or fears.

Set small, achievable financial goals like building an emergency fund or paying off one small debt, as these early wins will build momentum and confidence in your ability to manage money effectively.

Consider educating yourself about personal finance through reputable books, podcasts, or online resources. Knowledge often reduces the anxiety that comes from feeling out of control or uninformed about financial decisions.

What’s the best way to distract myself from worry?

Engage in activities that require active mental focus rather than passive consumption. Try puzzles, crafts, cooking a new recipe, or learning something new, as these activities occupy the same mental space that worry typically consumes.

Physical movement is particularly effective for interrupting worry cycles, whether it’s a walk outside, dancing to music, or doing household chores that keep your hands and mind busy.

Connect with others through phone calls, video chats, or in-person activities, since social interaction naturally shifts your focus outward and can provide perspective on your concerns while offering emotional support.

Can melatonin help me sleep when I’m feeling anxious?

Melatonin supplements can be helpful for sleep issues related to anxiety, as it regulates your sleep-wake cycle and may help you fall asleep more easily when racing thoughts are keeping you awake.

However, it works best when combined with good sleep hygiene practices and may be less effective if your anxiety is severe or if you’re taking it at the wrong time. Typically, 30 minutes to 2 hours before bedtime works best. Start with small doses to avoid overdosing on melatonin which can keep you awake and alert.

It’s worth consulting with a healthcare provider before starting melatonin, especially if you’re taking other medications or have ongoing anxiety issues, as they can help determine the right dosage and timing, and discuss whether additional anxiety management strategies might be beneficial alongside or instead of melatonin.

Conclusion

Money stress is making it harder for many people to get a good night’s sleep. From younger adults worried about rent to others lying awake thinking about job security, financial anxiety is showing up in our sleep habits. It’s leading to middle-of-the-night wakeups, bedtime scrolling, and less restful nights overall.

While we can’t control the economy, we can take small steps to protect our rest. Creating a calming bedtime routine and limiting financial stress triggers at night can make a real difference.

Methodology

We surveyed 1,002 Americans to explore how economic stress affects their sleep patterns in 2025. The generational breakdown of respondents was as follows: Gen Z (18%), millennials (53%), Gen X (23%), and baby boomers (6%). The data was collected in May 2025.

About Amerisleep

Amerisleep is committed to helping people sleep better, especially during stressful times. Our eco-friendly, expertly engineered mattresses are designed to support quality rest and promote overall well-being.

From pressure-relieving memory foam to innovative cooling technologies, Amerisleep products offer the comfort and peace of mind you need to sleep through the night, no matter what’s on your mind.

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