You may have heard the phrase, “You can never be too rich or too thin.” While society increasingly recognizes the dangers of eating disorders like bulimia and anorexia, the mental health impact of financial stress is still often overlooked. Struggling to make ends meet, worrying about bills, or dealing with unexpected expenses can create ongoing stress and anxiety that affects other aspects of life.

According to a 2011 Pew Research Center study, most Americans rated their financial situation as “poor” or “fair,” and nearly half reported experiencing financial hardship in the previous year. In some areas, like metro Detroit, these numbers are even higher. Today, money stress is becoming more common, with 28% of adults saying they expect their financial situation for themselves and their families to be worse a year from now. Understanding financial stress and its effects can be important for protecting both mental and emotional well-being.

What is financial stress?

Financial stress, sometimes referred to as money stress, occurs when financial demands outweigh an individual’s resources or coping capacity. This can stem from job loss, overwhelming debt, insufficient income, or unexpected expenses. Financial stress is more than just worrying about money; it can manifest physically, emotionally, and socially. People who are financially stressed may experience chronic stress, sleep disturbances, and strained relationships, all of which can make it harder to manage daily life.

Signs of financial stress

Common signs or symptoms of financial stress may include:

  • Late payments on major bills like rent, mortgage, or utilities
  • Relying on credit cards or cash advances to pay daily expenses
  • Making only minimum payments on credit cards
  • Using one form of credit to pay off another
  • Avoiding conversations about money with friends, family, or coworkers
  • Trouble sleeping, insomnia, or oversleeping
  • Frequent irritability, anger, or mood swings
  • Feelings of guilt, shame, or worthlessness

People who are chronically financially stressed may experience anxiety, insomnia, substance use issues, alcoholism, or depression. Recognizing these signs early can help prevent financial stress from taking a deeper toll on your mental health.

Why do people get financially stressed?

Financial stress can arise from a variety of sources, and they can be interconnected. Examples of causes of financial stress include:

  • Marriage and family responsibilities: Many families rely on two incomes to stay afloat. Income changes, layoffs, or job insecurity can create tension and marital strain. Financial instability remains a powerful predictor of divorce.
  • Parenting and childcare costs: Raising children can add significant financial pressure, from daily expenses to long-term costs like college tuition.
  • Holidays and social pressures: Special occasions can exacerbate financial strain through gift-giving, travel, or celebrations.
  • Unexpected emergencies: Medical bills, car repairs, or home maintenance can quickly deplete savings and create stress.

Understanding some of the causes of financial stress can help individuals and families develop strategies to manage it more effectively.

The impact of financial stress on children and families

Financial stress doesn’t only impact adults; it can also significantly impact children and family dynamics. Parents who are struggling financially may misdirect their stress at children or become emotionally unavailable. Children in households experiencing financial hardship are more likely to show symptoms of stress, anxiety, and behavioral issues.

Findings from the American Psychological Association highlight that financial stress in families can lead to the following mental health issues in children:

  • Stress and anxiety
  • Guilt for not being able to help
  • Signs of physical distress, including stomachaches
  • Trouble sleeping
  • Anger or stubborn behavior

Supporting children and maintaining open, honest communication about money can help reduce these negative outcomes.

Tips to cope with financial stress

Even if financial challenges seem overwhelming, there are steps you can take to reduce money stress and regain a sense of control.

  • Create a budget: Track income, expenses, and debt to identify areas for adjustment.
  • Build an emergency fund: Even small savings can reduce stress about unexpected costs.
  • Prioritize debt repayment: Focus on high-interest debt first to relieve financial pressure.
  • Seek financial education: Learning strategies for managing money can empower you and reduce stress.
  • Communicate with loved ones: Discuss finances openly with partners or family to prevent misunderstandings.
  • Practice self-care: Stress management techniques like exercise, meditation, or journaling may improve emotional resilience.

Therapy for financial stress

If financial stress is affecting your mental health, talking to a licensed therapist can be helpful. A therapist can help you:

  • Explore the emotional impact of being financially stressed
  • Develop healthy coping strategies for anxiety and depression related to finances
  • Improve communication and problem-solving skills in relationships
  • Navigate the shame or guilt often associated with money struggles

Finding a therapist who has a specialty in financial stress can help provide mental health support as you work toward stability and emotional well-being.

Takeaway

The effects of financial stress can extend beyond budgets and bank accounts; they can impact mental health, relationships, and overall quality of life. If you are experiencing symptoms of financial stress, know that you’re not alone. Professional mental health support can help you develop coping strategies and find hope during challenging financial times.

Connect with a licensed therapist who can support you through financial stress at findmytherapist.com.