Shaded Bough Counseling

Tag: finances

  • What are the Effects of Financial Stress?

    What are the Effects of Financial Stress?

    Last week I talked about what financial stress is. Today we’ll explore the effects on financial stress on families, relationships and mental health. It can happen to people of any income, old or young, even the smartest of us. But no matter your situation, know that you’re not alone.

    Poverty can be traumatic.

    Poverty is unpredictable, exhausting, and frequently treated as shameful. It’s a “chronic stressor,” so even when you aren’t being harassed by bill collectors and you do have food on the table, you never really feel secure. Poverty increases a person’s risk of physical and mental illness, and makes it harder to get healthcare.

    Many of my clients who grew up in poverty report that they still worry about money, even if they’re now financially secure. Others feel guilty about spending money, even on things that make them happy or healthier. It’s difficult to talk about, especially if most of your friends or family haven’t been there, so this kind of trauma can be very isolating.

    The effects of financial stress are generational.

    Most of us learn how to think about money by watching our parents. If your parents worried about how they’d pay the bills, you may worry the same way. Children who notice their parents’ financial stress often avoid asking for things because they don’t want to be a burden on their parents.

    This problem gets bigger if your family has low “financial literacy.” That’s the ability to understand and use money to achieve your goals. Low financial literacy doesn’t mean someone’s unintelligent. It just means they haven’t had the chance to learn these skills. You may have a harder time with money if your family wasn’t able to teach it to you. But just like other learned habits, this is something you can improve.

    Financial anxiety

    Although financial stress hits low-income people the hardest, it can affect people of all social classes. In particular, anxiety often manifests through how we handle our money. Money represents different things to different people: freedom, security, hope, despair, social acceptance, guilt, self-worth, and more.

    Think about what money represents to you. Is it something to save up in case of emergency? Is it a little bit of breathing room, a relief? What do you feel okay about purchasing, and what makes you feel guilty or irritated? How much time do you want to spend thinking about money, and how will you know when you have enough? What will you do if you have enough?

    These questions get complicated quickly. My clients find that discussing it in therapy helps them figure out their core values, and to overcome their deeper fears. It’s hard work, but rewarding.

    Relationship tension

    Another form of financial stress happens when two people in a family have different ideas of how money should be used. Perhaps one spouse thinks they should be more careful with what they spend. But their partner thinks they both need a better quality of life. Maybe a parent wants an adult child to start paying rent while at home – or a child is tired of bailing their parent out of debt.

    With “money” as one of the top reasons couples split up, it’s worth talking to your partner early on about how they view money, and what kind of lifestyle they want. Explore what money represents for each of you. Often, disagreements over money stem from deeper worries or needs.

    Effects of financial stress on mental illness

    One of the toughest effects of financial stress is that it makes every other problem in your life harder. It’s harder to afford doctor visits, medication or therapy if money is tight. Even if you logically know you have “enough,” money can become another reason for your brain to worry excessively. It may also exacerbate feelings of shame, guilt, low self-worth, or feeling “unproductive.” People with addictions often struggle with financial stress, too – and the financial stress can make addiction worse.

    If you need therapy but money is tight, check out FindHelp.org or Open Path Collective. It’s better to start looking early than to wait until you’re overwhelmed, because many low-cost providers have waitlists. I also counsel clients for financial stress, and have a limited number of sliding-scale appointments for people in need. Contact me if you’re interested, or check out my next article on ways to manage your financial stress!

  • What is Financial Stress?

    What is Financial Stress?

    With rising interest rates, inflation, and fears of a recession just around the corner, most Americans are dealing with a lot more financial stress. The best defense is to be prepared. Learn what financial stress is, how it affects you, and what you can do about it.

    Stressing about money – and so much more

    Financial stress occurs any time you find yourself worrying about money, the ability to pay for things, to reach your financial goals or maintain your lifestyle. It can mean worrying about whether you’ll be able to retire, raise children, get out of debt, pay for college, or more.

    Financial stress is not the same as being greedy or materialistic. Most clients I work with face financial stress because they want security, not wealth or high status. They just want to be able to enjoy their life without fearing it will be snatched away from them by bills and debt. In one of the richest countries in the world, that’s not an unreasonable ask!

    What is financial stress from a situation?

    I find it useful to distinguish whether financial stress comes from within yourself, or from the situation you’re in. This helps you identify what you need to do to address it.

    Your situation might give you financial distress if you are in poverty, live paycheck to paycheck, have irregular income throughout the year, lose your job, have a lot of debt, or encounter a disaster or sudden massive bill. The underlying question here is: How will I afford the things I need? The solution to this kind of stress has to address the situation: organizations like FindHelp.org to reduce your bills and get social support, unemployment benefits if you’re laid off, and SNAP and Medicaid to get food and medical assistance.

    However, assistance programs in the USA still have many gaps, and it’s extremely difficult for many people to get out of poverty or debt. We need institutional reform such as a single-payer healthcare system to ensure that people at all income levels can survive. But that’s another topic – let’s focus on what you can do, as an individual.

    What is financial stress from within?

    The other kind of financial stress can happen even if there is no obvious problem to cause it. You may be able to pay your bills, and see no reason why that would change, but you still worry. You might feel privileged, and like you shouldn’t complain because others have it harder, but you still feel guilty about spending money on “unnecessary” things or wonder if you need more.

    This kind of financial stress is less dramatic, but still a real fear many people struggle with. You might have grown up without much money, and worry about going back to that state. Maybe nobody taught you how to manage money effectively. Or perhaps you struggle to gauge how much you have and how much you need. If you suffer from anxiety, or general worries about your future, those often manifest as financial stress, too.

    What you can do

    My specialty is mental health, so that’s what I’ll be focusing on. For more assistance with external money issues, I recommend FindHelp.org – it’s a great directory for free and low-cost services ranging from elder care to groceries to job training, and more. They have a section for low-cost mental healthcare, too!

    I’ll be writing two more posts in this series, one on the effects of financial stress, and another for how to cope with it. For now, the most important things to know are that you are not alone, and you have a right to feel this way. Just because someone else might “have it worse” doesn’t make your stress or anxiety less real. You are not being silly or selfish by wanting to take care of yourself financially, or by not giving money to everyone in need of help.

    The most helpful thing, for me, was not trying to figure everything out alone. I had to reach out to relatives who understood money better than I did, and who were willing to teach me. Look for a friend, relative, or local class that can help you, too. (The library is a great place to ask!) Most people will not look down on you for trying to get to a better place. And if you want more intensive support – especially for handling stress, relationship, or anxiety issues at the same time – don’t hesitate to reach out for therapy.