money worries and mental health
Money worries can leave you feeling isolated and burdened by guilt, shame and embarrassment. These emotions can take a toll on your mental health, making it hard to be open about your financial concerns.
Almost 50% of people in Scotland don’t feel secure in their current financial position [Joseph Rowntree Foundation]. Worries about paying bills, managing debt or covering unexpected costs can be stressful and impact your confidence, relationships with others and how you feel overall. It can be especially difficult when financial concerns are compounded by challenges beyond your control.
Financial anxiety can be influenced by many different factors. Exposure to negative events in the news, such as the cost-of-living crisis, or personal challenges such as experiencing job loss can make it difficult to cope. This resource will help you understand the link between money and mental health and tips to help you manage.
myths about money worries and mental health
talking about money worsens mental health
Some believe that discussing financial issues can exacerbate mental health problems. However, open communication about money struggles can often lead to better emotional wellbeing and support.
money worries only affect people with low income
Financial anxiety can affect anyone, regardless of how much they earn. Almost 75% UK adults report losing sleep over their money situation [Nottingham Building Society].
gambling problems are only about money
While gambling can lead to financial difficulties, it can also have a significant impact on mental health, such as stress, anxiety, shame and isolation.
how do money worries affect mental health
Money worries affect us in various ways, impacting a person’s thoughts, emotions, behaviours and overall wellbeing. Those could include:
Stress and anxiety
One of the most common manifestations of money worries are anxiety and stress. Worries about how bills will be covered, debt repayments or how you will pay for daily expenses can lead to feelings of overwhelm, especially when faced with the uncertainty of financial circumstances in the future.
Depression and low mood
Ongoing financial struggles can lead to depression, causing persistent sadness, hopelessness or helplessness. These emotions can, in turn, disrupt sleep patterns, appetite and energy levels, further contributing to despair.
Loneliness
You may feel lonely or isolated if you withdraw from social occasions because you are worried about the price and whether you can afford the activity. Some people may feel embarrassed or judged about their finances, which can further cause feelings of isolation from their social circles.
Relationship strain
Financial difficulties can strain relationships, creating conflict and tension. Disagreements over financial decisions and the burdens of financial obligations can escalate, causing increased stress within relationships.
Substance use or excessive spending
Alcohol and substance use provides temporary relief and an escape from financial anxieties, but it can lead to addiction and worsen mental and physical health. Excessive spending, on the other hand, offers momentary pleasure and a sense of control but often results in increased debt, hindering financial recovery.
Sleep disturbances
Financial worries often disrupt sleep patterns, causing insomnia or fragmented sleep due to anxiety about financial problems and future financial stability. Racing thoughts about money worries can prevent a restful night’s sleep, contributing to overall fatigue and mental strain.
Mania
In certain mental health conditions, such as bipolar, borderline personality disorder (BPD) and schizoaffective disorder, periods of mania can increase impulsive behaviours, such as excessive spending or engaging in substance use, that make handling money more challenging.
tips for managing your spending
Some people avoid looking at their bank account when they are stressed, while others overindulge and impulsively spend to feel better. Understanding how you respond to financial stress can help you start to change your behaviour. It may help to set a regular time to check your bank account, so it becomes part of your daily or weekly routine.
Getting a clear picture of your income and spending habits is a powerful step towards improving your overall wellbeing. A budget is a plan for balancing money coming in and going out, which can make you feel more in control and help manage money worries.
While setting up a budget might feel daunting, it can help you to:
- Feel more confident managing your money
- Spot where your income is coming from
- Understand your spending patterns
- Tackle debt more effectively
- Put money aside for unexpected expenses.
Tools like the MoneyHelper Budget Planner can support you to get started in a simple, structured way.
Importantly, make updating your budget fun. Once you do the task, reward yourself for completing your goal, such as watching your favourite show or spending time on a hobby that brings you joy.
There may be some additional benefits you are eligible for that may ease some financial stress. You can read more about available benefits on the Scottish Government website. However, here are some benefits that are worth looking into:
Universal Credit
Universal Credit (UC) is a financial support programme designed to assist individuals with their everyday expenses. To apply for Universal Credit, you must meet the following criteria:
- Be a UK resident
- Be 18 years old or older (with some exceptions for those aged 16 to 17)
- Be below the State Pension age
- Possess money, savings, and investments totalling less than a specified amount (changes per year)
The amount you will receive from Universal Credit will depend on several factors. You can read more about UC here.
Benefits for carers
Many carers face financial stress alongside the stress of their caring role. However, there are financial supports available, such as:
- Carer Support Payment: This payment is available for eligible carers to help cover expenses related to caring duties.
- Carer Additional Support payment: An additional payment for those who care for more than one person.
- Young Carer Grant: Specifically for carers under 18, this grant provides financial assistance to young carers balancing school or other responsibilities with caregiving.
- CarerSmart discount club: As an unpaid carer, you can sign up to get discounts from high street shops, earn cashback, get discounts on travel or other services, such as legal fees and more!
For more information, the Mental Health and Money Advice website can help you with any financial worries impacting your mental health.
Dealing with debt can feel overwhelming. However, taking a proactive approach can help you regain control of your finances and give you confidence. The initial steps to take include:
- Assess your debt: Begin by evaluating your outstanding debts.
- Create a budget: Develop a budget to manage your income and expenses effectively.
- Prioritise repayments: Identify and prioritise your debt repayments.
Should your debt become unmanageable, consider seeking professional assistance. It is important not to accumulate additional debt while working on your repayment journey. Keep in mind it is a gradual process, requiring patience and self-compassion. Do not hesitate to seek practical or emotional support from friends and family during this journey.
support
Advice for frontline staff
In partnership with the Scottish Government, we’ve put together a helpful advice package that includes information, assistance and training resources for frontline staff who support individuals affected by poor mental health and money worries.
Resources to help you
If you or anyone you know is struggling with money, you can consult the following resources from Mental Health and Money Advice for support:
- Free Mental Health and Money Toolkit
- Free budget planner
- Free saving calculators
- How the cost-of-living crisis might affect your mental health
- What other effects might I see because of the cost-of-living crisis?
- I can’t afford my debts, what can I do?
National Advice and Support Service
Our National Advice and Support Service can help you and people you care for with mental health concerns and money worries.
We can link and signpost you to relevant local and national support, including our own Change Mental Health services, as well as supporting with debt, grants and benefits.
The service is open Monday to Friday, 10am to 4pm (closed for lunch between 12.30pm to 1.30pm). Contact 0808 8010 515, email advice@changemh.org or fill in the form on the service webpage.
For full details about the service, visit the National Advice and Support Service webpage.
other support
MoneyHelper – offers practical guidance on a range of financial matters, including debt, pensions, savings and budgeting. They also have a community group and offer free advice on debt and pensions.
National Debtline – You can call 0808 808 4000 9am-8pm Monday to Friday to get free advice and support from debt experts.
