Financial stress and mental health are more intertwined than you might think. Picture this: you’re lying awake at night, not because of a noisy neighbor or a caffeine overdose, but because you’re wondering how to cover next month’s rent. That racing mind, heavy chest, and sense of dread? That’s not just stress—it’s the emotional cost […]
Financial stress and mental health are more intertwined than you might think. Picture this: you’re lying awake at night, not because of a noisy neighbor or a caffeine overdose, but because you’re wondering how to cover next month’s rent. That racing mind, heavy chest, and sense of dread? That’s not just stress—it’s the emotional cost of financial insecurity.
Financial worries aren’t just about numbers—they’re about survival, security, and identity. According to a 2022 study published in the Journal of Family and Economic Issues, adults in the U.S. who experience higher levels of financial concern are significantly more likely to suffer from psychological distress. This includes symptoms like anxiety, depression, and emotional exhaustion. [source]
But why does money—or the lack of it—hit us so hard mentally?
It threatens basic needs: When rent, food, or health care are at risk, our brains switch to survival mode, which refers to a state where the brain shifts its focus entirely to immediate needs like securing food, shelter, or safety. In this state, people may experience heightened anxiety and difficulty managing other aspects of their lives, as their primary concern becomes survival. This mental shift can prevent individuals from thinking about long-term solutions or emotional well-being.
It affects self-worth: Financial challenges like unemployment or debt can cause people to feel ashamed or inadequate. This can lead to social withdrawal, as individuals may feel embarrassed or unworthy of support. The emotional toll often results in a sense of hopelessness, as it becomes difficult to see a way out of the financial burden.
It limits choices: Financial instability can make it hard to access essential services, like therapy or healthcare, as well as basic needs such as nutritious food. The stress of financial strain also limits personal time, as individuals may need to work longer hours, leaving little room for rest and recovery.
The study found that the psychological effects of financial stress hit certain groups even harder:
Unemployed individuals
People who are single
Low-income families
Renters vs. homeowners
These groups not only face higher financial risk but often lack the safety nets—both emotional and economic—to cope effectively.
Unlike income or credit scores, financial stress is subjective. You could earn a decent salary and still feel overwhelmed by student loans, or live paycheck to paycheck yet feel in control due to budgeting skills. That emotional response is what really drives the mental health impact.
The study emphasizes that subjective financial strain can be more predictive of psychological distress than objective measures like income or debt level. In other words: how you feel about your money situation matters as much—if not more—than the numbers themselves.
Addressing this crisis requires an integrated approach:
Therapy or counseling: Especially with providers trained in financial trauma or stress.
Financial literacy programs: Budgeting, debt management, and money mindset workshops.
Stress-reducing techniques: Mindfulness, journaling, or movement practices.
Clinics and mental health providers should screen for financial stress as a factor in diagnosis and treatment planning.
Accessible care: Sliding-scale therapy, insurance-covered mental health treatment, and partnerships with financial counselors can create better support.
Financial stress and mental health are locked in a feedback loop: stress leads to mental distress, which can affect your ability to work, plan, or make decisions—deepening the financial strain. But there’s a way out. It starts with acknowledging the connection and making help—both emotional and financial—accessible.
If you or someone you know is struggling with financial stress, know that you’re not alone—and you deserve support that sees the whole picture. Share this post, start the conversation, or reach out for help.
At Curated Mental Health, we believe in treating people, not just symptoms—and that includes understanding the real-life pressures behind what you’re feeling.
