Trauma is a word used a lot in the therapy world; it is one of the leading reasons people seek therapy. Financial trauma is a relatively new term. Why do we need to single it out as a type of trauma?
Naming financial trauma destigmatizes and validates the experience. Like other forms of trauma, it can be acute (a sudden job loss), chronic (years of relationship tension about finances), or complex (being raised while your parents declare bankruptcy). Financial instability can also push people into higher-risk living situations or activities (gambling, speculative investing or compulsive buying). Many individuals are unaware of their money beliefs and how they tie to self-worth, love, and acceptance.
Financial trauma often shows up as a felt sense: dread when a bill arrives, freezing up at the idea of checking a bank balance, constant vigilance about money even when things are stable, or shame that keeps people from talking about it at all.
Financial trauma can emerge from:
- Underemployment or long-term unemployment
- Losing a job without having an emergency fund
- Living paycheck-to-paycheck
- Partner/spouse leaving
- Gambling
- Substance abuse
- Financial infidelity
- Compulsive purchasing
- Costly medical emergency or chronic diagnosis, accidents
- Unexpected pet emergencies
- Transgenerational trauma—little to no socioeconomic power
- Adverse childhood experiences from any of the above in family of origin
In Bankrate’s 2025 Money and Mental Health Survey, 43% of U.S. adults said money negatively affects their mental health at least occasionally. That was more than any other factor in the survey, including current events like politics (38%) and their own health (36%). Women were more likely to say this, 45%, than men, 41%. The most common worries were inflation, everyday expenses, not having enough emergency savings, and debt.
Those pressures are real, and how we respond to them depends a great deal on our beliefs about money, which often originate in childhood. What did your parents model or teach you about money? How did culture and society influence those beliefs? What intrapersonal and interpersonal financial conflicts have arisen for you?
Unhelpful money beliefs often lead to:
- Avoidance: not paying bills or taxes
- Overspending: charging on credit cards or buy now, pay later services
- Holding on: keeping money or items out of fear of not having enough later
- Underspending: going without, even when there is enough
- Shame connected to financial challenges
There is a way forward to a healthier relationship with money. At Our Healing Therapy, we will work with you to identify and articulate your money beliefs and connect them to your family of origin. We honor how those beliefs helped you in the past, then gently challenge them so you can find a more helpful perspective. Money is also one of the most common sources of conflict between partners, and we work with couples to understand each other’s money stories and create a shared financial vision. Contact us today.
Disclaimer: The information in this blog is provided for educational and informational purposes only. It is not intended to be a substitute for mental health care nor a recommendation or endorsement for any particular treatment plan, organization, provider, professional service, or product. The information may change without notice. No claims, promises, or guarantees are made about the completeness, accuracy, currency, content or quality of information linked. You assume all responsibility and risk for any use of the information.