The Money-Mental Health Connection

May 1

What You Need to Know About Money & Mental Health

Mental illness can make managing money significantly harder, often leading to avoidance, risky decisions, or emotional spending.
Financial stress doesn’t just affect your bank account; it can contribute to anxiety, depression, and physical symptoms like sleep issues or brain fog.
Support matters. Whether you're an individual, a workplace leader, or a mental health ally, there are tangible ways to reduce shame and build financial wellness.

Money & Mental Health: Why It Matters

Nearly 1 in 5 American adults will experience a diagnosable mental illness this year. That statistic alone should be enough to spark conversation, but too often, we overlook how mental health and money are deeply intertwined.

As a financial therapist, I see firsthand how mental health impacts our ability to manage money and how financial stress can take a real toll on our mental well-being. While I initially covered this topic during Mental Health Awareness Month, it deserves ongoing awareness and attention throughout the year.

In this post and accompanying video, you’ll learn about the intersection of money and mental health, how it impacts us at work, what employers can do to support employees’ mental health, how to take care of your own mental health, and ways to be an ally to others.

How Mental Illness Impacts Financial Decision-Making

Mental illness doesn’t just affect how we our emotional states and mood, it affects how we function. One study found that 63% of people with mental health conditions say it's harder to make financial decisions when they're struggling.

Here are a few ways it shows up:

Avoidance and overwhelm. Tasks like paying bills or budgeting can feel insurmountable during depressive or anxious episodes.
Emotional spending. For some, shopping becomes a way to self-soothe, especially when our brains crave a dopamine boost.
Risky financial behaviors. In the case of bipolar disorder, manic or hypomanic episodes may lead to excessive spending or risky investments.

It’s not just about individual choices, either. Systems like disability insurance can be tough to navigate, especially when mental health makes paperwork or phone calls feel impossible. According to the Disability Attorneys of Michigan, disability claims for mental illness can take up to two years to process.

Financial Stress Can Harm Mental Health, Too

It goes both ways. Financial stress can worsen mental health, even for those without a clinical diagnosis. In fact, 61% of people say they experience anxiety symptoms due to money stress, and 40% report depression-like symptoms. Women and younger generations are particularly affected.

Financial stress often leads to physical symptoms, too:

Sleep disturbances
Brain fog
Stomach pain
Low energy and irritability
Headaches

Add to that the shame that often comes with financial hardship, and you get a perfect storm of emotional burnout and stagnation.

Money Shame

When people feel like they are behind or failing financially, it can show up as money shame. Guilt is external “I made a mistake,” whereas shame is internal: “I’m bad.” When it comes to money, there’s a difference between “I forgot to pay that bill” and “I’m bad with money.” That internalized belief that you’re “bad at money” can spiral quickly, leading to more avoidance and more shame.

We also don’t talk enough about the triggers that come with money. For some people, opening their banking app feels like a panic-inducing task. For others, it might be checking the mail, answering calls from unknown numbers, or even just being reminded that rent is due. Financial tasks that are seemingly “basic” can be highly stressful, especially for those who’ve experienced financial trauma.

Triggers are how your brain tries to protect you. When you feel that trigger, your body wants to avoid to protect you from feeling uncomfortable or painful. But when those protective instincts interfere with taking action (like avoiding bill due dates about bills or putting off paying taxes), it’s time to explore how you can create other ways to engage with your money. That might look like doing finances with a friend nearby, setting up reminders that are kind and encouraging, or giving yourself extra time to process after a stressful money task.

What Employers Can Do

For most of us, our paycheck is directly tied to our job. So when mental health impacts our ability to show up at work, our finances suffer. And when our finances suffer, so does our mental health.

To create a culture that normalizes the connection between money and mental health, employers, managers, and HR teams can play a powerful role in breaking the cycle of financial and mental stress. Here are some ideas:

Normalize mental health and money conversations during onboarding and team meetings.
Train managers to spot signs of financial or emotional distress—without judgment.
Encourage the use of PTO for mental health days.
Offer access to financial wellness programming (like workshops, quizzes, or coaching).

When workplaces offer these supports, they reduce absenteeism, increase productivity, and create a culture where people can bring their whole (or at least a little more authentic) selves to work.

How to Support Your Mental Health

If you’re personally struggling at the intersection of money and mental health, a first step you can take is to check in and see what is causing the most distress.

Here’s how:

Which money tasks feel the most stressful? (e.g. opening bills, budgeting, saying "no" to plans with friends)
Which ones feel okay or even supportive? (e.g. automating savings, tracking spending)

Then, ask yourself: what support could help?

Could you do some body doubling with a friend so you could get support while you pay your bills?
Would deleting a shopping app reduce the temptation to impulse-shop?
Can you automate savings during the times you feel more motivated?

Financial self-care doesn’t have to be perfect or all-or-nothing. I have a video with 37 ideas for financial self-care that you can pick and choose from, depending on what feels most accessible right now.

How to Be a Mental Health Ally

Supporting others doesn’t require a mental health degree. There are so many ways you can signal to friends, family, or colleagues that you support them. Things like accountability, open dialogue and advocacy go a long way.

Some examples of how to be a mental health ally include:

Be an accountability buddy. Swap screenshots of bills paid or savings wins.
Create a safe space. Be someone they can text when they're considering a splurge or need help making a tough call.
Advocate at work. If your workplace isn’t talking about financial wellness, bring it up.
Vote for policies that support mental health and financial equity.

Take Positive Mental Health Action

Whether it's Mental Health Awareness Month or not, combining practical financial tips with emotional and mental health strategies can help you better manage your financial stress and improve your overall well-being. Financial stress is a shared experience, but it is manageable with the right tools and support. Prioritizing mental health while addressing financial concerns is key to achieving overall well-being and creating a healthy and sustainable relationship with money.

Lindsay Bryan-Podvin