The Relationship Between Family Mental Health And Economic Stress

Medically reviewed by Nikki Ciletti, M.Ed, LPC
Updated September 5, 2024by BetterHelp Editorial Team

Economic stress can significantly affect families. In tough times, people may lose their jobs, houses, cars, or health insurance and struggle to meet their basic needs. Parents in this situation may believe they are failures or be wracked with guilt because they can’t give their children certain necessities. These circumstances may be uncontrollable, and they can lead to mental health problems for all family members. However, support is available, and families can often utilize resources to improve their financial and mental situation. 

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The family stress model

Research about how economic stress affects family mental health centers on the family stress model, which suggests that socioeconomic problems affect children in the family by affecting the parents.

More specifically, economic hardships put more significant pressure on parents, which causes greater emotional distress. This distress may lead to increased family conflict, affecting parenting, which can lead to internalizing and externalizing behaviors in children.

How economic stress can affect parents

Research in China found that financial hardship affected the roles of the parents in the household. In this study, mothers were more likely to stay home and care for the children than fathers, who worked long hours away most of the day. This situation resulted in fathers being less involved in parenting because they were spending more time away from their children, affecting their relationships' closeness. While this study looked at nuclear families, the same results may apply to any family situation where one parent works extra hours outside the home while the other shoulders most of the responsibilities of childcare.

This research also found that some parents, especially single parents, were overwhelmed by their parental role. Many study participants reported that they didn’t know how to get along with their children and faced conflict. Participants also reported that the family’s financial situation caused significant pressure, which could lead them to have negative relationships with their children. 

Economic stress can also undermine parent-child relationships. Parents reported becoming stressed when their children started comparing themselves with their classmates, with some mentioning that their children asked them to buy certain items or brands their classmates had. When parents told their children no because they couldn’t afford unnecessary spending, the children reacted angrily. Some parents reported that they believed their children thought they didn’t love them because they could not give them the same items as other parents. 

Financial stress can significantly impact the relationship between parents, too. Some research found that economic hardship can make some families more vulnerable to violence and abuse and that continuously high levels of economic hardship over time could elevate the risk of intimate partner violence. If you are in a situation where you are unsafe or having a mental health crisis, seek support immediately.

If you or a loved one is experiencing abuse, contact the Domestic Violence Hotline at 1-800-799-SAFE (7233). Support is available 24/7.

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How economic stress can affect children

The family stress model can help individuals understand how economic hardship affects young children, particularly from birth to age ten. Attachment and emotional development theories highlight the importance of the parent-child relationship during this period, with parents shaping their children’s development through example and how they respond to their behavior. Research has found that poverty is a significant contributing factor to child health outcomes, even with short-term exposure, and, according to the National Institute of Health, it may impair learning ability in young children.

Adolescents can be affected by economic stress, too. Evidence shows that adolescents raised in homes with economic stress are more likely to develop problematic behaviors, which can lead to multiple challenges in adulthood, including problems with physical, mental, and financial health. 

Multiple studies have found that economic stress can lead to both internalizing and externalizing behaviors in children. Internalizing behaviors are not always easy to see as they are directed toward the self. These behaviors may include anxiety, depressive symptoms, social withdrawal, difficulty concentrating, negative self-talk, or feelings of sadness, guilt, or loneliness. 

Contrarily, externalizing behaviors are easily observable and may include aggression, impulsivity, control problems, and rule breaking. One study found that, after adjusting for specific characteristics, children who experienced family economic hardship had an 84% higher chance of having an internalizing disorder and a 53% higher chance of having behavioral or conduct problems compared to those who had not experienced this type of stress.

How to help children through times of financial hardship

If your family is experiencing financial hardship, a few bits of advice from psychologists may help you support them. Financial difficulties do not make you a bad parent, and support is available to get through these times. 

Create an open dialogue 

Talk to your kids about the situation you’re experiencing. An honest conversation may build trust between you and your child and help them gain clarity about the situation so they don’t have untrue thoughts about themselves or the situation. 

Ask your children about their feelings

Kids may react differently to financial stress. They may worry that they won’t be able to get the necessities or items they need, feel guilty about asking for necessities, or believe that the situation is their fault. 

Parents can help their kids learn to express their feelings. Ask them how they feel, and actively listen to what they say. Normalize their feelings by telling them it’s okay to be scared or sad. Explain the problem in child-friendly terms and let them know that you have a plan to move forward. You may also reassure them that the financial difficulties are not their fault. 

Be careful with your words 

Choose your words carefully. Instead of saying, “We can’t afford that,” try saying phrases like, “I don’t think that’s the best use of our money right now” or “Let’s look at this again in the future. Right now, we have to save money.” 

Reframe the situation 

Try to reframe the situation positively. For example, if your child verbalizes negative thoughts, like, “We’re never going to have a better life,” you might respond by saying, “Life has its ups and downs, and we’re going through a rough patch. But we’ll get through it.”

Find positive distractions 

Help your child distract themselves from your financial troubles by including positive distractions in their routine. Try to encourage inexpensive but fun activities like taking a walk, playing outside, or taking a bubble bath.

Consider seeking help 

In some cases, parents might benefit from extra help managing their children's experiences, especially if they are exhibiting signs of poor mental health. For example, if kids are being teased or bullied at school because they don’t have the same items as other kids, their teacher or guidance counselor may be able to help. You may also consider finding mental health providers working with children for additional support in your area.

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Support options 

Dealing with financial hardship can be challenging, but trying to find a way through it while emotionally supporting your children can amplify an already stressful situation. If you are seeking help in developing coping strategies for managing the mental health issues associated with economic stress, talking to a therapist may be beneficial. However, in-person therapy can be challenging to access financially. In these cases, online platforms like BetterHelp for adults and TeenCounseling for teens aged 13 to 19 may be beneficial. 

With online mental health services, clients can work with a qualified mental health professional from the comfort of their homes at a time that works for their schedule. This flexibility can make it an option for people with long work hours. Treatment may also be more affordable than working with an in-person provider without insurance, and financial assistance may be available on some platforms to those who qualify.

If you are interested in therapy but are worried about the cost, online treatment may be a suitable option. Research suggests that, in addition to being a viable, convenient alternative to in-person treatment, online therapy has the potential to be delivered at a lower cost.

Takeaway

Research shows that family mental health outcomes, child mental health, and economic stress are linked to mental health challenges and financial challenges, affecting both parents and children. Economic stress can have long-term effects on a child's mental health. Learning how to help your children through periods of economic hardship may help you manage any mental health impacts. If you are seeking help in managing your own psychological distress, consider reaching out to a therapist online or in your area for guidance.
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