How do therapists help address the root causes of financial anxiety and help clients develop healthy coping strategies.
By Ana Brown, B.A. Psychology (she/her). Reviewed by Dr. Pascale Piron, Psy.D., M.A., LCPC (she/her).
March 26th, 2025
I remember sitting quietly on the beach, in my younger years, on a gorgeous sunny day feeling the warm breeze from the ocean, my eyes closed and my feet touching the beautiful white sand, the sounds of laughter from my friends playing in the water, what a perfect vacation day, except for all I could think about was how expensive the hotel was and that I really did not need to buy that new pair of shoes, and what if the whole trip exceeded my budget and I could no longer make ends meet, what if I had an unexpected expense in the upcoming month? All of a sudden the magic of that moment was gone I was no longer enjoying my vacation day. In my mind I have taken the trip back home where all my money worries were and my especial vacation day was pretty much ruined by the intruding thoughts that kept coming as fast as the waves.
Although everyone experiences financial worries at different levels, many people do worry about finances constantly regardless of level of income. We all want to have comforts in life and all of these come with a price tag. To achieve success most of us, who are fortunate enough to have access to an education, follow similar paths, we attend good schools, then get a higher education and look for a job that will pay for all those wants and needs. But, when the paycheck does not match the lifestyle, money issues arise along with stress and anxiety.
What is money anxiety and symptoms:
- constant worrying about bills and finances
- insomnia
- irritability
- avoid checking account statements
- difficulty concentrating
- physical symptoms such as chest pain, stomach pains, headaches.
According to a study by CNN, 71% of Americans report money as a major cause of stress.
A Bankrate survey found that 46% of women report money issues negative impact on their mental health, creating feelings of stress, anxiety, depression and insomnia.
The American Psychological Association conducted a study which shows “72% of adults report feeling stressed about money some of the time, with 22% reporting extreme stress related to financial concerns.”
Sometimes creating budgets, decreasing spending and increasing savings is still not enough to stop stressing over money issues. There may be underlying causes related to the negative feelings associated with the challenges of financial struggles. A therapist can help identify these deep rooted issues and support clients develop a healthier relationship with money.
THE IMPORTANCE OF THERAPY IN DEALING WITH FINANCIAL ANXIETY:
According to Dr. Pascale Piron, Psy.D.,M.A., LCPC, founder of Emerge Psychology Group based in Chicago, IL :
“Therapy is important for individuals facing financial stressors as it helps them develop healthy coping mechanisms, decrease and manage anxiety, and build a more positive relationship with money, ultimately leading to improved financial well-being and overall mental health. Financial stress can bring up a lot of anxiety, shame, or fear. Therapy provides a safe space where individuals can express their feelings without judgment.”
When we find ourselves in situations that negatively impact our mental health, then all other areas of our lives are just as affected. Throwing a birthday party for our kid, going on a long waited vacation with family, or buying that dream home become huge stressors instead of good memories.
TYPES OF THERAPY FOR FINANCIAL STRESS:
- Cognitive Behavioral Therapy (CBT): Identifies and changes negative thought patterns, by talking about the problems and it helps clients reframe how do they relate and feel about money.
- Solution-Focused Brief Therapy (SFBT): Goal oriented and short term, focused on finding the precise steps clients must take to manage money stress and financial hardships. It focuses on the solutions instead of solving the problems.
- Financial Therapy: a combination of emotional support and financial education which leads to an improved emotional well being and better financial decisions.
- Mindfulness-Based Therapy: Focused on present moment awareness, and thoughts and feelings,meditation, and breathing techniques to reduce automatic responses and decrease depression and anxiety.
HOW DOES THERAPY IMPROVES FINANCIAL MINDSET:
- Identifies underlying causes of financial stress: In a safe therapeutic setting a client can explore all possible causes triggering money anxiety, such as past financial traumas (bankruptcy), childhood instilled values, compulsive spending, gambling, extreme debt, job loss, financial illiteracy, spending to compensate feelings of loneliness or self-esteem issues.
- Develops healthy coping mechanisms: therapists teach clients new tools to manage financial stress more efficiently, including regulating emotions, learning how to make better financial decisions, such as saving and investing and practicing self-care and financial education.
- Builds a healthier relationship with money: Being constantly afraid of spending any money or saving every penny are both extreme and not healthy behaviors when it comes to money management. In therapy a client learns how to balance their emotions, have more of a mindful approach to money. It helps a client to understand the emotional side of financial decisions and have a positive relationship with money.
- Rebuilds Self-esteem: Always feeling stressed about money can affect anyone’s self-esteem and confidence. Money struggles bring low confidence, fear and shame. Therapists support clients by helping them find solutions for their financial struggles and by improving how they feel about themselves.
Therapists provide a safe space for clients to discuss and improve financial well being.
The difference between a financial advisor and a therapist is, the advisor only focus on the superficial aspect of money struggles and the practical steps to improve their finances, but a therapist addresses the root causes which leads to important long term behavioral changes.
Talking about money is not easy and it can feel very uncomfortable. But addressing how money anxiety is making you feel is not only important but crucial for mental and physical health. Unfortunately, in today’s society financial success seems to be directly related to one’s sense of self-worth. Money has become the center of our lives, it drives us to make almost every single decision. Money struggles can rob us of precious moments and special memories. We have become money hostages. Therapy, mindfulness and support from family and friends can lead to healthier coping strategies in dealing with financial mental struggles and the overwhelming feeling that “I will only be happy when I have more money” or “I will only be happy when my debt is paid off”.
The time to experience life is now . By being aware and present, to feel that warm breeze and the white sand underneath our feet. Not when or if , but now. Tomorrow is never guaranteed. Now is when I do want to close my eyes and remember that there is light even in darkness, and internal peace with or without money.
Seeking help is always a courageous act.
Take a deep breath. You are in charge.
Be kind. Be brave. Be well.
Always with love,
AB
RELATED LINKS:
Emerge Psychology Group – Chicago, IL
Best Ways to Cope With Anxiety
The Jed Foundation – How to deal with financial stress and anxiety