Money is everything for a lot of people, and it’s easy to agree with them. We need money for many essential things, like food, bills, and gas. That’s not even counting things like vacations or “fun” purchases. However, there is more to life than making money to just turn around and spend it. What about having personal time with our family, enjoying a hobby, or spending time in nature?
What’s the problem?
According to the National Library of Medicine (2022), in 2021 one in five renters admitted they couldn’t pay their rent. Does that mean we need to work more? Not necessarily.
The fact that we feel as though we need to work so much just to afford basic expenses, such as rent, is putting a huge strain on our psychological health, and it’s contributing to the growing number of individuals with mental health issues. According to the National Institute for Health Care, the amount of mental illness in adults in the U.S. increased by 8% in 2008 and by 24% in 2018, on top of the 26% average. This rise in mental illness correlates to the growing financial stressors.
One of the most prevalent economic problems in America are the recessions. According to MDPI, 2023, economic recessions have a very negative effect on individuals. During recessions, the percentage of depression and anxiety went up notably, and the rate of reported suicides increased. 21.2% of people reported that they were experiencing anxiety attacks and episodes in correlation to a personal financial crisis caused by the larger recessions. Many people can’t afford mental health or counseling services, so it would start to seem like there just isn’t anything we could do to fix our problems. “This is also exacerbated by the fact that many countries’ mental health services are drastically underfunded.” (MDPI, 2023).
People need time for themselves and for their social life, to do things they enjoy. Going on vacation, taking personal breaks, hanging out with friends, or even just being alone doing nothing stressful are all things we need to do to take care of our mental health. However, in today’s world, we don’t have a lot of time to do that. In between jobs, household chores and maintenance, etc., there isn’t a lot of time for just us. “Feeling beaten down by money worries can adversely impact your sleep, self-esteem, and energy levels. It can leave you feeling angry, ashamed, or fearful, fuel tension and arguments with those closest to you, exacerbate pain and mood swings, and even increase your risk of depression and anxiety.” (HelpGuide.org, 2023)
Who is affected?
While everyone is vulnerable to financial stress and mental illness, some groups are more susceptible: college students, those who experienced financial hardships in childhood, and older adults with a history of financial burden who experience health-related outcomes.
College students experience financial stress due in part to the “transition into adult life” while trying to balance finances, a social life, and school, all at once. That’s a lot of pressure for a young adult experiencing the world in its rawest form for the first time. When trying to find a good balance, social and psychological health can take a back seat, which contributes to the high number of mental illnesses.
Those who have experienced past financial trauma are more vulnerable to financial stress, whether it’s subjective or objective. For example, if as a child you experienced your parent's financial hardships and witnessed the repercussions, you are more likely to fear being in the same situation. This can make it hard for you to spend money, and makes you more susceptible to mental health issues that damage your overall psychological health.
Sometimes, financial stress burdens a person to such an extent that it can cause long-term health issues. Lifelong financial problems have been found to be linked to health problems severe enough to form physical impairment or depressive symptoms and episodes (Kahn & Perlin, 2006).
So… how can we fix this?
In more ways than one, finances are taking a toll on adults. In America specifically, reoccurring recessions and growing financial pains are major factors. What can we do to solve this? While we don’t have control over issues external to us, such as the larger economy or America’s fiscal responsibility, we can help at our personal level. Here are a few things we can do (summarized from HelpGuide.org, 2023):
1. Admit that your financial situation is causing you issues
After coming to terms with your current situation, it is easier to continue to solve your problem. Talking to a professional or someone close to you that you trust is a tried-and-true method. You can start by reaching out to a family member, a spouse, or a close friend; or by utilizing resources such as the counselors we have here at NMSU.
When you have effectively admitted that there is an issue, you must identify the issue. Is there a car or house payment? Are there loans? Can you afford your rent? There could be more than one variable, and they all don’t have to be money-related.
2. Manage your stress appropriately
It’s unlikely that your financial problems will resolve themselves, or that they will be okay overnight. So how can we combat the finance-related psychological issues when we can’t change the financial component? Managing stress in other ways such as exercise and good sleep can help. I know we’ve heard it all before, but having a proper routine can make a positive difference, more than we’d like to admit. Keep yourself occupied while having fun doing something you enjoy, like participating in a personal hobby or learning something new. Practicing relaxation techniques, like meditation or breathing exercises, can help too.
3. Make a plan
Once you know what your issue is and you have a few proper stress management techniques, it’s time to make a plan. This plan can include having people for support and to keep you accountable, making a moderately strict budget, and keeping a close eye on specific issues. If your biggest concern is a car payment or loans, then a lot of your focus and savings should go towards that long-term. If your biggest concern is paying rent month-to-month, then you should focus on starting a savings account and making a budget. Holding yourself accountable or having another trusted person to hold you accountable is important to sticking to your plan.
Money negatively affects almost half of the adults in America, and we need to do something about it. At this moment in time, it’s out of reach for us to change the greater economy, but by doing what we can at the personal level to lessen our financial stressors, we can make a difference in our own lives. When you identify the issue, manage your stress, and plan a budget, you can work towards better personal finances and better mental health.
Written By: Emalie Hames, Culture and Entertainment Collective 1
References
· Ryu, S., & Fan, L. (2023). The relationship between financial worries and psychological distress among U.S. adults. Journal of family and economic issues. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8806009/
· Iamreneeonque. (2022, October 10). 42% of Americans say money negatively impacts their mental health. here’s what an advisor suggests for Financial Security. CNBC. https://www.cnbc.com/2022/10/10/world-mental-health-day-how-money-negatively-impacts-mental-health.html
· Robinson, L. (2023, June 6). Coping with financial stress. HelpGuide.org. https://www.helpguide.org/articles/stress/coping-with-financial-stress.htm
· The link between money and mental health. Mind. (n.d.). https://www.mind.org.uk/information-support/tips-for-everyday-living/money-and-mental-health/the-link-between-money-and-mental-health/
· Kahn, J. R., & Pearlin, L. I. (2006). Financial strain over the life course and health among older adults. Journal of Health and Social Behavior, 47(1), 17–31. https://doi.org/10.1177/002214650604700102
· Kelly, N. (2023, February 28). How recessions impact mental health. MDPI Blog. https://blog.mdpi.com/2023/02/28/recessions-and-mental-health/#:~:text=It’s%20no%20surprise%2C%20then%2C%20that,of%20self%2Dharm%20during%20recessions
Good post, I have thought this before and I’m glad somebody wrote about it. Common narrative people have but often wrong. Thanks for sharing!
I enjoyed reading your post because money is always on everyones mind. I personally almost chose a career path that I would have hated, but would have made lots of money in. I thought that if I made so much money I would eventually be happy with the career but it took lots of convincing from family and friends that money isn't everything. I wish our society wasn't so focused on being the best and having to make the most money.
Amazing read Emalie! Finances take up a majority of our lives so it isn't a mystery why it drives so many to depression and suicide. The idea that literally everything costs money is so consuming. I've heard that the US isn't a country, it's a business and it feels just like that when I see someone struggling financially for basic human necessities.
I hate what inflation has done to this country. Everything is so expensive now it's ridiculous!
At the school where I previously taught, the president made a comment once that essentially boiled down to "students don't have money because they're buying $5 Starbucks drinks." As if the crushing weight of college education/debt, unaffordable housing, medical costs, and so much more didn't factor into things. Your post reminded of this and so did Jorge's comment. Financial stress is a difficult but important issue to talk about!