What Is The Relationship Between Financial Stress And Health?
In a 2024 survey, 73% of Americans identified money as their biggest source of stress, ahead of work, family, and politics. While many people are aware of the effects of stress on their mental health, they may not be aware of the very real effects that it can have on their physical health. The physical effects of stress can, in turn, negatively affect a person’s mental health, potentially creating a vicious cycle.
This article will explore the relationship between financial stress and health and discuss ways to improve financial wellness, reduce stress, and enhance mental health.
Common causes of financial stress
Financial stress can have numerous causes, some of which individuals have no control over. In recent years, millions of people across the country have experienced financial hardship related to the rising cost of living, including higher prices of food, gas, utilities, and transportation. Some people may also experience financial stress if they go through a period of unemployment, which can make it difficult to pay a mortgage or rent.
Medical bills and financial stress
Many people also experience financial stress due to medical bills. Thousands of people experience financial strain related to medical bills and high deductibles. Many also worry about paying for their health insurance premiums. This may be especially concerning for those who don’t have employer-sponsored insurance. The need to earn enough money to pay for health care bills can contribute to significant psychological distress, which may exacerbate existing health conditions.
Finances and physical health problems
Financial stress can cause significant harm to a person’s physical health. Research suggests that stress can lead to inflammation, which is often associated with numerous types of disease. The chronic stress response can increase the risk of numerous health problems, including headaches, indigestion, and muscle tension. Chronic stress can also be dangerous for a person’s heart.
Effects of financial stress on the heart
Money-related stress can negatively affect a person’s cardiovascular health. According to Yale Medicine, stress can harm the heart in the following ways:
- Stress can lead to a buildup of plaque in a person’s arteries. This can lead to coronary artery disease, which can cause abnormal rhythms, heart failure, and heart attack.
- Stress can lead to an increase in catecholamines like adrenaline, which can cause the heart to beat faster and increase blood pressure. While this may be helpful in an emergency, a prolonged stress response can damage the heart over time.
- Stress can lead to a rise in the stress hormone cortisol, which can increase blood pressure, cholesterol, triglycerides, and blood sugar.
- Short-term stress in people who already have a buildup of plaque may lead to a rise in adrenaline, which can lead to a rupture of plaque. This could lead to the formation of a blood clot, which, if large enough, could interrupt blood flow and cause a heart attack.
Strategies to improve financial health
While some financial stressors, such as medical debt, may be out of a person’s control, others might be mitigated through various financial strategies. One strategy that may improve financial health is to use a budgeting app. A budgeting app may make it easier to track expenses, as you don’t have to rely on pen and paper to write everything down. With a budgeting app, you may be able to input expenses automatically by linking your debit and credit cards to the app. You might also be able to set notifications so that you can see when you are close to your budget in various categories.
Another strategy that may improve your financial health is to assess your credit utilization rate. If you have any credit card balances with high interest, you might find a way to get a lower interest rate with another creditor. However, it may be best to speak to a financial counselor before making any major credit decisions.
Seek financial counseling
Some people experiencing financial difficulties may find it useful to speak with a financial counselor about ways to improve their financial well-being. Some financial counselors may offer free financial advice through various community organizations or online agencies. However, you might find such services advertised as “debt relief counseling” or “debt consolidation services.” While these services can sometimes reduce debt and interest rates, they often affect a person’s credit score and ability to open a line of credit until the consolidated balance is paid.
You may benefit from seeking financial counseling from an agency that doesn’t consolidate debt. Counselors at these organizations may be able to advise you on which balances or debts you should pay off first. They may also have some advice specific to your financial situation, including advice about local tax incentives or programs that provide financial support for those in need.
Talk to a mental health professional about financial stress and health problems
In addition to talking to a financial counselor, you might benefit from speaking with a qualified mental health professional. A therapist may be able to help you mitigate stress and improve your psychological health as you work toward improving your financial situation.
Online therapy for financial stress
For some people facing financial stress, in-person therapy might not be affordable at this time. However, there is still help available through online therapy, which is often less expensive than in-person therapy without insurance. BetterHelp allows you to connect with a licensed therapist without leaving home, which may help you save on transportation costs. Online therapy also allows you to reach out to your therapist between sessions via in-app messaging. You may find this option helpful if you experience an especially stressful day due to financial worries.
Online therapy has a strong basis of support in the psychological literature. Multiple studies have found online therapy to be effective for various mental health disorders, including anxiety and depression. However, you don’t have to have a mental health diagnosis to benefit from online therapy. An online therapist may be able to help you find strategies to relieve stress regardless of its cause.
Takeaway
Financial stress can harm both mental and physical health. It can lead to headaches, indigestion, inflammation, and increased risk of heart disease. If you’re experiencing financial stress, you may benefit from speaking with a financial counselor, who can provide personalized financial advice.
You may also find it helpful to connect with a mental health professional. A qualified therapist may help you address financial worries and any mental health challenges you’re experiencing. You can find a suitable professional in your local area or online.
What’s the link between financial stress and health problems, including mental health challenges?
Financial stress can have a significant impact on a person’s physical and mental health. Chronic stress can lead to physical symptoms like chest pain and can increase a person’s risk of heart attack. In terms of mental health, chronic financial stress can sometimes lead to anxiety and depression.
What’s one way to improve stress related to finances?
One possible way to improve stress related to finances is to incorporate relaxation techniques into your routine. For example, you might practice progressive muscle relaxation, which typically involves tensing and then relaxing various muscle groups one by one.
How can I improve my financial health?
One way to improve your financial health may be to focus on paying off the debt with the highest interest rate first. Once this debt is paid off, you might improve your financial health by automating saving and taking advantage of employer-sponsored retirement accounts.
Can financial stress make you sick?
Financial stress can sometimes lead people to isolate themselves, which research shows can lead to poor mental health and various physical health problems. Financial stress can also lead to risky coping mechanisms like smoking and alcohol use.
What are the negative effects of financial stress?
Financial stress often leads to challenging emotional responses and can exacerbate symptoms of common mental disorders like anxiety and depression. Economic hardship and debt stress tend to be associated with higher psychological distress and lower life quality. Low self-esteem, depressive symptoms, and even suicidal thoughts can occur in response to money problems, especially when coupled with a lack of emotional support and effective coping strategies.
What is the root cause of financial stress?
The root cause of financial stress tends to be different for each person who experiences it. Some individuals don’t have sufficient resources to pay their monthly bills, while others may have large amounts of personal unsecured debt that seem impossible to pay off. Student loans, medical bills for chronic health issues (the leading drivers of health care costs, according to the Centers for Disease Control), credit card debt, unhealthy spending habits, and a lack of financial planning can all contribute to financial stress.
What is the relationship between financial stress and mental health?
Financial stress frequently has a significant impact on overall mental health among the adult population, according to both objective measures and subjective measures. It can even be seen as a public health issue. When a person doesn’t have enough money in their monthly budget to pay their bills, or they make less money than they need to afford medical care and other necessities, their financial problems can become overwhelming.
Often, self-reported health metrics are lower when people are experiencing economic difficulties. This can be even more common for people who are part of disadvantaged groups living in low-income households. Sometimes, the stress associated with money troubles can even lead to physical symptoms requiring healthcare services, such as gastrointestinal problems.
What are three signs that financial stress is impacting a person's well-being?
A sense of overwhelm or lack of control over one’s financial matters is one sign that financial stress is affecting a person’s well-being. Individuals may also find that they constantly think about their financial conditions and experience uncomfortable physical symptoms when finances are on their mind. A consistent negative association between money and mental health, along with other health-related variables, can indicate that financial stress is impacting a person’s well-being.
What shouldn’t you say to a financially struggling person?
In general, try to avoid saying anything that could be perceived as judgmental, particularly about their spending patterns. Demographic characteristics suggest that those who are going through financial struggles are likely already experiencing guilt and judging themselves for their financial situation. You might try to spend time together in ways that don’t require them to spend money to reduce financial stress. If they ask for advice, you could recommend budgeting apps or other resources to help them manage money more effectively. Many banks and credit unions offer free counseling with financial professionals to their members.
Can financial stress cause trauma?
It’s possible for financial stress to cause trauma. Coping resources like therapy can be helpful if your mental health is impacted by both financial worries and traumatic experiences with money. Sometimes, therapy can also help with problematic spending patterns by addressing the emotional root of the spending. You may find that your financial conditions improve alongside your mental health. If therapy seems out of budget, you might try online therapy instead, as it’s usually less expensive. It can also be very convenient, allowing you to connect with mental health professionals through video calls, phone calls, or online chat.
- Previous Article
- Next Article