For many of us, money isn’t just numbers on a page – it’s deeply tied to safety, security, and peace of mind.
But when financial struggles take center stage, they can leave a lasting emotional scar.
Job loss, overwhelming debt, or the looming shadow of bankruptcy can create a ripple effect that impacts more than your bank account.
These experiences can lead to financial trauma, with symptoms mirroring post-traumatic stress disorder, (PTSD) that can profoundly affect your mental health and daily life.
While not every financial setback will cause this, persistent financial stress can build up over time, making even everyday money matters feel overwhelming.
Recognizing the triggers and symptoms of financial trauma is the first step to breaking the cycle and reclaiming control.
Can financial problems cause PTSD?
While financial trauma is not a mental health diagnosis, if left untreated, the effects of it could lead to PTSD, which is. The impact financial trauma has on someone can severely impact their mental health.
There will always be slight stressors from remembering to pay your monthly rent, but tools like making your payments automatic can help reduce that stress.
These low-stress financial situations can build up to larger financial problems and cause long-term stress, but managing and controlling your finances can help a lot when it comes to avoiding them altogether.
Healing from Financial Trauma: Taking the First Steps to Building a Better Relationship With Money
What triggers financial trauma?
A number of different things can trigger financial trauma. Some financial triggers are:
- Job loss
- Bankruptcy
- Debt
- Emergencies
- Economic crisis
- Food insecurity
Not all of these situations will necessarily cause you to feel the effects of financial trauma or PTSD, but if you have had past traumatic financial experiences, this can greatly impact your current financial behaviors.
Therefore, keeping track of triggers and symptoms is important to help you avoid these stressful situations.
What are the symptoms of financial trauma?
If you are curious if you have financial trauma, there are three areas in your life where symptoms may show up:
- Physical
- Emotional
- Behavioral
You may be experiencing some or all of these symptoms. These may slowly show up in your life from time to time, but can easily spiral out of control.
Physical Symptoms
Financial stress can take a huge toll on your physical well-being. If you have financial stress and trauma in your life, you may have physical symptoms like:
- Difficulty sleeping
- Panic attacks or flashbacks
- Fatigue
Emotional Symptoms
If you are constantly worried about your finances, you may exhibit emotional symptoms like:
- Chronic anxiety around money – overspending or avoiding it entirely
- Depression
- Fear
- Shame
Behavioral symptoms
If you’ve had financial trauma in your life, you may have behavioral symptoms that impact your relationship with finances.
These behaviors usually lead to a worse relationship with money.
Behavioral symptoms can be:
- Avoiding financial responsibility
- Overspending
- Isolating yourself from social situations for fear of spending money
How do you deal with financial trauma and PTSD?
If you are experiencing financial trauma and PTSD symptoms, there are options to help you cope and, hopefully, learn to manage these triggers more healthily.
Seeking professional help from a financial counselor, therapist, or advisor is a great place to start.
These professionals have seen and helped many people going through stressful financial situations. In addition, they can help you to identify and work through your financial history and circumstances, as well as provide you with helpful tools and strategies to overcome them.
Strategies like these can also help you deal as well:
- budgeting
- setting realistic financial goals
- practicing self-care
- building a healthier relationship and mindset around money
Final Thoughts
PTSD from traumatic and extreme financial stress is something many people face.
It’s important to acknowledge these symptoms and address it to help those suffering from it.
The symptoms of financial trauma can lead to further mental health issues if left unaddressed and untreated.
Seeking help and support from financial professionals, family, and friends are critical ways to deal with these situations.
Editor’s note: This article was originally published Apr 12, 2023 and has been updated to improve reader experience.
