Money and Mental Health

Money can be a stressful subject for many people, and this has heightened due to the current cost of living crisis. Many studies have shown that a person’s financial situation can have direct impact on their mental health, and vice versa: a person’s mental health can have a direct implication on how they manage their finances.

Research has demonstrated that there is an intricate relationship between financial stability and mental health. A person’s financial situation isn't just about numbers on a bank statement; it's intricately woven into their overall sense of security, self-worth, and peace of mind. When faced with economic uncertainty or financial strain, individuals often experience heightened levels of stress, anxiety, and depression. The burden of debt, the pressure to make ends meet, and the fear of an uncertain future can weigh heavily on an individual’s mental health, leading to a myriad of psychological challenges.

Mental health struggles can also significantly impact one's ability to manage their finances effectively. Conditions such as depression or anxiety can decrease energy and motivation, making tasks like budgeting, bill payments, or financial planning feel unachievable. Moreover, the stigma surrounding mental health issues may prevent individuals from seeking the support and guidance they need to navigate their financial challenges effectively, further exacerbating the cycle of distress.

It's crucial to recognise that the relationship between money and mental health is not one-sided. Just as financial instability can contribute to poor mental health, mental health difficulties can also lead to financial instability, creating a vicious cycle that's difficult to break free from.

Ultimately, we believe that addressing the complex relationship between money and mental health requires a multifaceted approach that prioritises empathy, education, and accessibility. By creating a culture and community of understanding and support, we can work towards relieving the burden of financial stress and promoting mental wellbeing for all.

Our Advice

Follow StepChange’s Six Step Guide:

StepChange have identified a six step debt stress guide. They can help you step by step to spot the signs of debt stress, and advise you from there. Please see the Helpful Links below to visit the StepChange website.

Seek Medical Advice

If you are struggling with your mental health, please seek medical advice from your local GP, or the NHS website.

Get the Money Toolkit

Mind Charity have a free, downloadable PDF that explores how we can manage our money and mood patterns, organising finances, talking about money, and getting support.

Contact Us

If you are interested in saving money, or need any advice, please contact us. Our team are happy to help. You can email us on ccu@cardiffcu.com or give us a call: 029 2111 1720.

Helpful Links

Anxiety, Depression, Mental Health & Debt. StepChange

Money worries and mental health - Every Mind Matters - NHS (www.nhs.uk)

Money and mental health - Mind

Home - Stop Loan Sharks Wales : Stop Loan Sharks Wales

Money Works (moneyworkswales.com)

Article Sources

Jiménez-Solomon, O., Garfinkel, I., Wall, M. and Wimer, C. (2024). When money and mental health problems pile up: The reciprocal relationship between income and psychological distress.

Anxiety, Depression, Mental Health & Debt. StepChange

Money worries and mental health - Every Mind Matters - NHS (www.nhs.uk)

Money Works (moneyworkswales.com)