top of page

Understanding the Impact of Financial Stress

Updated: Aug 13

Personal finance has been considered a topic too taboo to discuss openly for far too long, quietly triggering heightened stress responses and significant negative consequences.


Financial stress is normal from time to time, but it chronically affects certain people more often and/or more deeply. This can happen when you have an unhealthy day-to-day relationship with money, and it can happen when you have experienced or are currently experiencing financial trauma, from having high toxic debt to the death of a loved one. Acute financial stress is also common with first generation wealth builders and other First Gens, from first generation college students to first generation Americans, accumulating from financial trauma experienced in childhood and perhaps perpetuated still today.



Silent Symptoms of Financial Trauma & Stress

  • Anxious, shameful, and/or guilty feelings when thinking about money.

  • Insecure and fearful of the worst case scenario when thinking of the future.

  • Feeling overwhelmed when creating a budget, or making financial decisions. May avoid such activities.

  • Worried that will not be able to make ends meet or aptly care for self or family.

  • Living with a scarcity mindset. May have difficulty spending, leading to impulsive saving, underspending and underinvesting (cash hoarding). The opposite may also be true, leading to impulsive spending, overspending, and further hoarding tendencies (food, clothing or other resources).

  • Showing signs of nervousness or apprehension when talking about money.

  • Concerned that costly things will happen to them, possibly due to a past and/or childhood experience. Can feel numb or detached and unable to mitigate risks by planning ahead.

  • In a troubled financial position: has overdue bills and/or expenses are higher than income.


✨ The Good News ✨

Where Financial Wellness Fits Into the Picture

Because of increased awareness on the impact of financial stress on our mind and body, financial wellness is slowly moving to the forefront of discussions on life and money. Financial wellness is the state of being in an emotionally secure position with money, with both a healthy financial foundation and positive feelings around money. We as a society are finally starting to recognize financial health and wellness as a vital pillar of our holistic health.



No one needs to know everything about money. They just need to know what works for them.

—Reeta Wolfsohn



For most people, financial wellness starts with financial literacy and taking small steps today to improve your situation. You would be surprised at the potential impact of a few relatively small and simple money moves.


For those currently experiencing financial trauma or its symptoms due to your financial situation, history or environment, there may be a need for financial therapy or counseling to ease the acute stress. This can be done simultaneously with meeting with a coach or planner to start getting organized and steadily implementing small steps with an accountability partner.


Reaching and maintaining financial wellness often takes a blend of financial coaching and planning to get you on the right footing and build your confidence around money. My planning style integrates these two financial care types to help you know, feel and do better with your money. Reach out anytime with questions on financial stress, literacy and/or wellness. My virtual door is always open.



Disclaimer: I care deeply about acknowledging the financial hardships, trauma and hard feelings that arise around money for many people, though I would like to clarify that I am not a licensed financial therapist (though I am considering pursuing the designation). This writing is not intended to be prescriptive, but rather an anecdotal telling of my personal lived experience and professional experience.


• • •

Have questions? Drop a comment on this post.

Need help putting together your financial plan? Get in touch.


📌 Sage Financial Planning LLC helps first generation wealth builders know, feel and do better with their finances to help them achieve their life goals and, eventually, reach financial freedom.

For more information on our holistic financial planning offerings, please visit our Service Options page.


0 comments

Recent Posts

See All

Bình luận


bottom of page