We often hear 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 largely overlooked.

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, the numbers are even higher.

The mental toll of financial stress

Job loss, overwhelming debt, and struggles to pay for basic needs like rent or mortgage payments can lead to feelings of hopelessness. As economic uncertainty continues, financial stress is becoming more common. 78% of Americans now say they worry about money. These worries don’t stay confined to budgets and bank accounts. They bleed into every corner of daily life, which can create tension at home, work, and within friendships.

Chronic financial stress has been linked to a wide variety of physical and mental health issues, including:

  • Anxiety
  • Insomnia
  • Substance use
  • Alcoholism
  • Depression

Even individuals who remain employed may still experience stress due to fears of layoffs, pay cuts, or corporate bankruptcies. Financial instability remains one of the leading causes of divorce, as many families rely on two incomes to stay afloat. When income changes, especially if a primary breadwinner loses their job, marital strain can follow. While bankruptcy and foreclosure are becoming more common, the social stigma surrounding them can bring shame and isolation.

The impact on children and families

Economic hardship doesn’t just affect adults. Financial stress can also damage relationships between parents and children. When adults feel overwhelmed by money-related stress, they may misdirect their frustration at their children. Children in financially struggling households are more likely to experience distress and symptoms of depression.

According to the Society for the Psychological Study of Social Issues, depression in children and teens is associated with:

  • Poor school performance
  • Substance abuse
  • Risky behavior
  • Physical health issues
  • Trouble forming healthy relationships
  • Increased risk of suicide

Common signs of financial stress

Are you or someone you know showing signs of financial stress? Here are some common signs to look out for:

  • Late payments on major bills, like a mortgage or car payment
  • Making only minimum payments on credit cards
  • Using one form of credit to pay off another
  • Relying on cash advances to pay daily living expenses
  • Avoiding interactions with friends, family, or coworkers
  • Trouble sleeping or sleeping too much
  • Frequent anger or irritability
  • Feelings of guilt, shame, or worthlessness

Takeaway

The effects of financial stress can damage your mental and physical health. If you’re experiencing any of the symptoms listed above, know that you’re not alone. You don’t have to navigate this difficult time by yourself.

Talking to a licensed therapist can help you better understand your situation and develop healthy ways to cope. Connect with a licensed therapist specializing in financial stress and anxiety who can help you regain a sense of stability and hope.