The Intersection Of Money And Mental Health For Women

Many of us are familiar with the feeling of opening a bill or checking our account balance. The pit in your stomach and worried thoughts are stressful, especially if you are going through a difficult time. 

A 2024 survey from Motley Fool found that 54% of people feel stressed about money three or more times a week. Statistics like this reveal that money is more than just the amount in your account. It is connected to your well-being and has a direct impact on your mental health.

With women reporting higher stress levels than men, understanding how your finances and mental health are linked is important to developing awareness and effective coping strategies.

Capital One’s CreditWise survey reveals that personal finances are the leading source of stress in the United States.

Chronic stress increases your risk of many health problems, including depression and anxiety. With money considered a consistent stressor, the results of Bread Financial’s recent study on finance and mental health are unsurprising. 61% of people reported anxiety symptoms, 40% experienced depression-like symptoms, and 53% had sleep issues.

Excessive debt and financial problems can also cause you to feel angry, afraid, or ashamed. It can also hurt relationships and job performance. This can lead to impulse purchases, missed or late payments, and poor money management. Avoidance only increases anxiety and stress, but half of Gen Zers and millennials reported avoiding checking their account balances in Motley Fool’s survey. This cycle can make a difficult situation worse. 

While financial stress affects men and women, the impact is greater on women. According to research from Science Direct, financial anxiety is significantly higher in women, especially when it comes to long-term expenses. Women worry more about medical expenses, retirement, bills, and the cost of education. 

Women’s financial stress is also influenced by systemic realities. The gender pay gap, caregiving responsibilities, and longer lifespans give women more to worry about since they need their money to cover more and last longer.

Financial stress is real and not to be underestimated, but there are things you can do to feel more in control. The most effective coping strategy, according to the Motley Fool survey, is creating a budget and sticking to it. Knowing how much money you have coming in and going out empowers you. Pattie Ehsaei, a financial services expert, recommends using digital tools, like budgeting apps, to help you.

Pattie also suggests taking the time to educate yourself about money. Developing financial literacy builds confidence, making it easier to save, budget, and invest. This is especially important since recent research reveals the importance of holistic wealth in managing financial stress. 

According to the research, savings, credit, and investments make a difference when there is income loss. People with fewer assets are much more likely to experience anxiety or depression with income loss because of the lack of financial stability. Saving and investing, even in small amounts, creates a financial safety net. They also provide feelings of psychological safety and control over your circumstances. You then make better financial decisions, decreasing the risk of falling into the financial stress cycle.

Columbia University recommends seeking support if you are feeling stressed or anxious. Do not isolate yourself. Speak to someone you trust or seek out a financial counselor. 

Make sure you take care of your mental health by practicing self-care. Focus on low-stress activities that will relax you and provide stress relief. Do not forget to eat well, hydrate, and get enough sleep. Taking care of yourself will keep you resilient in managing your stress.