Summary
Money and mental health can have a strong relationship. Financial circumstances can affect how we feel, think and behave, while mental health difficulties can sometimes make it harder to manage money, plan or make financial decisions. This can create a cycle where financial stress affects mental health, and changes in mental health make financial difficulties harder to manage.
Financial stress can come from many different situations, including low or unpredictable income, rent or mortgage payments, household bills, debt, changes in employment, unexpected costs, education expenses or simply having limited money left after essential spending. You do not need to be in serious financial difficulty to experience money-related stress. Worrying about whether you will have enough money for the future can also affect your wellbeing.
Financial worries can affect thoughts and emotions. You might find yourself constantly thinking about money, imagining worst-case scenarios or feeling guilty about spending. You may feel anxious, overwhelmed, frustrated, embarrassed, ashamed or low. Some people may become irritable or find it harder to enjoy things because they are worried about the cost.
Money worries can also affect the body and everyday functioning. Stress about finances may contribute to difficulty sleeping, feeling tired, headaches, muscle tension, changes in appetite or difficulty concentrating. If financial worries are taking up a lot of mental space, it can become harder to focus on work, education, relationships or other parts of everyday life.
Mental health can also affect the way someone manages money. Low mood may make everyday financial tasks feel exhausting or overwhelming. Anxiety can lead to avoiding bank statements, bills or financial conversations because they feel too difficult to face. Difficulties with concentration, memory, organisation or planning can make it harder to keep track of payments and spending.
Impulsivity can also affect finances. Someone may spend money quickly without considering the longer-term consequences, particularly when they are experiencing strong emotions. Spending can sometimes provide a temporary sense of excitement, comfort, distraction or relief, but this may be followed by worry, regret or guilt.
Changes in mental health can also affect income and financial stability. For example, difficulties with mental health may affect someone’s ability to work, attend education, maintain routines or complete everyday responsibilities. This can create additional financial pressure, particularly when income changes unexpectedly.
Financial difficulties can affect relationships too. Money can become a source of conflict between partners, family members, friends or housemates. Someone may avoid social activities because they cannot afford them, feel embarrassed about their financial situation or compare their circumstances with other people.
Social media and comparison can also influence how we think about money. Seeing other people spending money on holidays, clothes, meals, cars or experiences can create pressure to keep up, even when their financial circumstances are very different. Advertising and buy-now-pay-later options can also make spending feel easier in the short term while the financial consequences come later.
Financial stress can sometimes lead to avoidance. Opening a bill, checking a bank balance or thinking about debt may trigger anxiety, so someone may put it off. Although avoidance can provide temporary relief, it can also mean that important information or payments are missed, potentially increasing stress later.
Money can also be closely connected to feelings of independence, security and control. Financial difficulties may make someone feel that they have less control over their life or are unable to make choices that matter to them. At the same time, having a clear understanding of what money is coming in and going out can sometimes reduce uncertainty and make financial decisions feel more manageable.
How to help myself
Keep your budget simple and realistic. You do not need to track every penny if that feels overwhelming. You could set a weekly amount for things such as food, socialising and other non-essential spending. A budget is more likely to be useful if it fits your actual lifestyle rather than being so restrictive that it is difficult to maintain.
If financial tasks feel overwhelming, break them down into smaller steps. You could start by checking your bank balance, then look at upcoming payments, followed by one bill or subscription. Completing one small task at a time can make it easier to get started without feeling like you need to sort everything at once.
Use reminders, banking notifications and automatic payments where appropriate to help you keep track of regular costs. Make sure you have enough money available before scheduled payments are taken and check your account regularly so you know what is coming in and going out.
Pay attention to when you are more likely to spend impulsively. You might notice that you spend more when you are bored, stressed, upset, lonely or celebrating. If you notice an urge to make a non-essential purchase, try giving yourself some time before deciding. You could leave something in an online basket, add it to a wishlist or wait until the next day before buying it.
Regularly checking your bank account can help you understand your spending and spot payments you no longer need. Reviewing subscriptions and regular expenses can also help you identify where money is going without needing to make major changes all at once.
Try to leave some room for things you enjoy where possible. A budget that is extremely restrictive can be difficult to stick to and may make spending feel like something you have to feel guilty about. Even a small amount for hobbies, socialising or treats can be included if your circumstances allow.
Try not to compare your financial situation with other people. Everyone has different incomes, responsibilities and circumstances, and social media rarely shows the full picture. Focus on what is realistic and manageable for you.
If money worries are affecting your sleep, mood, relationships or ability to manage everyday life, consider talking to someone you trust or a relevant professional. You do not need to wait until your financial situation becomes a crisis before discussing how it is affecting you.
How to help a loved one
Try to create a space where the person can talk about money without feeling judged or embarrassed. Financial difficulties can bring up feelings of shame, guilt, anxiety or failure, so criticism or pressure may make it harder for them to be open about what is happening. Let them know you are concerned because you care about them and are willing to listen.
Ask what kind of support they would find useful rather than assuming you need to take over. They may want someone to listen, help them think through their options or sit with them while they complete a difficult financial task. Giving them choices can help them maintain a sense of control and independence.
If they are feeling overwhelmed, you could help them break financial tasks into smaller steps. For example, you might sit with them while they check their bank account, organise bills or make a list of regular expenses. Focus on one thing at a time rather than trying to solve everything immediately.
You can also help them notice how their mental health and spending may be connected. For example, they may spend more when they are stressed, use shopping as a way of coping or avoid checking their finances when they feel anxious. Approach these patterns with curiosity rather than criticism and help them think about other ways of managing difficult emotions.
If they are comfortable with it, practical reminders can be useful. Helping them set up calendar reminders, organise paperwork or keep track of important dates may reduce some of the pressure associated with managing money. However, avoid taking control of their finances unless they have specifically asked you to or there is a clear reason why this is necessary.
Be mindful of your own boundaries. Supporting someone financially does not mean you have to lend money, pay their bills or take responsibility for their finances. It is possible to be supportive while still having clear limits around what you can and cannot do.
Try to notice changes in their wellbeing as well as their financial situation. Significant money worries may contribute to changes in sleep, mood, appetite, concentration, relationships or everyday functioning. If you are concerned about their mental health, encourage them to speak with a trusted person or professional.
If someone is in immediate danger, is at risk of harming themselves or cannot stay safe, seek urgent help through 999, A&E or NHS 111.
Myth Buster
Myth: If someone is struggling financially, they are simply bad at managing money.
Truth: Financial difficulties can happen for many reasons, including low income, unexpected costs, debt, changes in employment, illness or changes in circumstances. Money management is only one part of the picture.
Myth: Talking about money will only make someone more stressed.
Truth: Money can feel difficult to talk about, but avoiding the subject can sometimes increase uncertainty and worry. Having a safe, non-judgemental conversation can make it easier to understand what is happening.
Myth: Mental health has nothing to do with money.
Truth: Financial stress can affect mood, anxiety, sleep and concentration, while mental health difficulties can also make budgeting, planning and managing bills more difficult.
Myth: You should never spend money on things you enjoy when you are budgeting.
Truth: A realistic budget can include some spending on hobbies, socialising and other enjoyable activities where possible. Being extremely restrictive can be difficult to maintain and may affect wellbeing.
Myth: Spending money always makes you feel better.
Truth: Spending can provide a temporary sense of excitement, comfort or relief, but this may be followed by regret, guilt or increased financial stress. This can create a cycle that is difficult to break.
Myth: You need to have serious debt before you can ask for support.
Truth: You can seek advice or talk to someone about your finances at any stage. Getting information early may make financial difficulties easier to manage before they become more serious.
Myth: If someone earns enough money, they cannot experience financial stress.
Truth: Financial stress is not only about how much someone earns. Unexpected expenses, debt, financial responsibilities, uncertainty and concerns about the future can all affect how someone feels about money.
Support
If money worries are affecting your mental health or making it difficult to manage everyday life, you do not need to deal with everything on your own. Talking to someone early can make financial difficulties feel less overwhelming and can help you understand what options are available.
A trusted friend, family member or another person you feel comfortable with can provide a listening ear and practical support. You might ask them to sit with you while you look at your finances, help you organise paperwork or simply be there while you talk through what is worrying you.
Citizens Advice can provide information about money, debt, benefits, housing, employment and other issues that may be affecting your financial situation. They can help you understand your options and what steps you can take.
Your GP can also be a useful starting point if financial worries are affecting your mental health. They can discuss symptoms such as anxiety, low mood or sleep difficulties and help you access appropriate mental health support.
If you are at school, college or university, you may have access to wellbeing services, counselling, student support, financial advice or hardship funding. These services can vary between organisations, so check what is available to you.
If debt is causing significant stress, specialist debt advice services can help you understand your financial situation and explore possible options. You do not need to feel ashamed about asking for advice.
If you are supporting someone else, remember that you do not have to take responsibility for their finances. You can listen, encourage them to access appropriate support and help with practical tasks while maintaining your own boundaries.
If financial stress is contributing to thoughts of self-harm or suicide, or you are worried that you cannot keep yourself safe, seek urgent help through 999, A&E or NHS 111.
Therapy interventions
Different types of therapy can help when financial worries are affecting your mental health. Therapy can focus on the thoughts, emotions and behaviours associated with money, while practical financial advice can address the financial situation itself.
- Cognitive Behavioural Therapy (CBT) – explores the links between thoughts, feelings and behaviours, and can help with anxiety, avoidance, guilt, catastrophic thinking and unhelpful patterns around money.
- Acceptance and Commitment Therapy (ACT) – helps you manage difficult thoughts and feelings while focusing on your values and making choices that support what is important to you.
- Counselling – provides a space to explore emotions such as anxiety, shame, guilt or overwhelm related to financial difficulties and other circumstances affecting your wellbeing.
- Problem-Solving Therapy (PST) – helps you break overwhelming problems into smaller, manageable steps and develop practical ways of responding to difficulties.
- Dialectical Behaviour Therapy (DBT) – develops skills for managing intense emotions, impulsivity and distress, which may be useful when spending or other financial behaviours are linked to emotional distress.
- Family Therapy – can support communication around money, reduce conflict and help family members understand how financial stress is affecting relationships and mental health.
Helplines
Citizens Advice
Citizens Advice is a charity providing free, confidential advice and support on issues including money, debt, benefits, housing, work, family problems, consumer rights and legal matters.
Website: www.citizensadvice.org.uk
Online chat: 9 am–5 pm, Monday–Friday
Phone (England): 0800 144 8848
Opening times (England): 9 am–5 pm, Monday–Friday; opening times can differ depending on where you live. Lines are closed on weekends and bank holidays.
Phone (Wales): 0800 702 2020
Opening times (Wales): 8am-7pm Monday to Friday and 9am-1pm Saturdays. Lines are closed on weekends and bank holidays.
Mind
Mind is a mental health charity providing information, advice and support for people experiencing mental health difficulties. They cover a wide range of mental health and wellbeing issues, including anxiety, depression, stress, relationships, loneliness, coping with difficult experiences and managing everyday life. Mind provides information to help people understand what they are experiencing, know their rights, find appropriate support and feel less alone.
Phone: 0300 123 3393
Opening times: 9am–6pm, Monday to Friday (excluding bank holidays)
Email: info@mind.org.uk
Website: www.mind.org.uk
Samaritans
Samaritans is a charity providing emotional support to anyone who is struggling to cope or needs someone to talk to. They are there for people experiencing all sorts of difficulties, including stress, anxiety, loneliness, relationship or family problems, bereavement, feeling overwhelmed and concerns about mental health or suicide.
Phone: 116 123
Opening times: 24 hours a day, 7 days a week, 365 days a year
Website: http://www.samaritans.org
StepChange
StepChange is a debt charity providing free and impartial advice to people experiencing money worries or struggling with debt. They can help people understand their financial situation and explore options for managing debts.
Phone: 0800 138 1111
Opening times: 8 am–8 pm, Monday–Friday; 9 am–2 pm, Saturday
Website: www.stepchange.org
National Debtline
National Debtline provides free and confidential debt advice for people struggling with debt or money worries. They can provide guidance on budgeting, managing debts and understanding different options for dealing with financial difficulties.
Phone: 0808 808 4000
Opening times: 9 am–8 pm, Monday–Friday; 9:30 am–1 pm, Saturday
Webchat: Available through their website
Website: www.nationaldebtline.org
MoneyHelper
MoneyHelper provides free and impartial guidance on money and financial matters, including budgeting, debt, bills, benefits, financial difficulties and planning for the future. It is a government-backed service provided by the Money and Pensions Service.
Phone: 0800 011 3797
Webchat: 9 am–5 pm, Monday–Friday
WhatsApp: 07701 342 744, Monday–Friday, 9 am–5 pm
Website: www.moneyhelper.org.uk
Shout
Shout is a free, confidential text messaging service that provides support to anyone who is struggling to cope. It can help with a wide range of issues, including stress, anxiety, low mood, loneliness, relationship difficulties, bullying, self-harm, suicidal thoughts, feeling overwhelmed and other mental health challenges.
Text: SHOUT to 85258
Opening times: Available 24 hours a day, 7 days a week, 365 days a year
Website: www.giveusashout.org
NHS 111 (Option 2)
NHS 111 is an NHS service providing urgent medical and mental health advice and support. It can help with mental health concerns, emotional distress, anxiety, low mood, suicidal thoughts and other urgent health problems.
Phone: For mental health support, call 111 and select the mental health option (option 2).
Opening times: Available 24 hours a day, 7 days a week.
YoungMinds
YoungMinds is a national charity supporting the mental health and wellbeing of children and young people. They provide information, advice and support for parents and carers who are concerned about a young person’s mental health, and help people understand mental health difficulties, find appropriate support and access useful resources. Their Parents Helpline can provide information, advice, emotional support and signposting to other services.
Parent helpline: 0808 802 5544 (9:30 am – 4 pm on Mondays, Thursdays and Fridays, and from 9:30 am – 6 pm on Tuesdays and Wednesdays)
Email: parents@youngminds.org.uk
Webchat: https://www.youngminds.org.uk/parent/parents-helpline/
Turn2us
Turn2us is a charity providing information and practical support for people experiencing financial difficulties. They cover issues including benefits, grants, poverty, money worries, housing costs and financial hardship.
Website: www.turn2us.org.uk
Online support: Benefits Calculator, Grants Search, PIP Helper and Find an Adviser
