Mental health and financial health are closely linked. Being in a difficult financial position can have a negative impact on your mental health, and mental health concerns can be exacerbated by poor financial wellbeing.
The UK’s Money and Mental Health Policy institute are leading the way in research into the link between money and mental health, finding that nearly half (46%) of those people in financial debt also have a mental health problem and 86% of those experiencing mental health problems reported their financial situation contributed negatively to their mental health.
Financial stress is not just the inability to meet financial commitments, overwhelming debt or a lack of money. For some financial stress can result
from a lack of confidence when managing money, one overdue bill or anxiety around future financial safety.
The Financial Health Institute defines Financial stress as “a condition that is the result of financial and/or economic events that creates anxiety,
worry, or a sense of scarcity, and is accompanied by a physiological stress response”. Whether you are worried about your retirement, debts, or your children’s future, financial stress is a particularly complex and destructive form of stress that can significantly reduce levels of mental health and wellbeing.
Key indicators of financial stress
Financial stress can have a significant and adverse effect on a person’s mental health and wellbeing, such as:
Strategies to improve your financial wellbeing and mental health
Once you notice your stress responses linked to your financial wellbeing, it is important to find effective ways to manage your financial stress