Addressing financial anxiety

A lack of income or savings can be a major source of stress, and limits our access to many of the things we need to live and be happy. This short self-assessment is a first step in identifying causes of financial distress and building a plan to manage it.

Having a low income is not in and of itself a predictor of poor physical or emotional wellbeing, but financial scarcity does reduce access to healthcare, housing, food, social connections and social supports, travel, recreation, education and job opportunities.[1] 

Financial insecurity can also be a major source of stress, especially when we’re trying to plan for the future. Both the experience and anticipation of hardship or deprivation have negative effects on physical and mental health.[2] In this way, even a perceived lack of money can increase stress and reduce wellbeing. 

Being in financial stress also increases the probability of developing symptoms of depression, anxiety or PTSD following potentially traumatic events, and ongoing financial stress can hinder physical and emotional recovery.[3]

Past experiences of financial hardship, poverty, job loss or precarious employment can also lead to ongoing anxiety around money and an inability to feel financially sound, even when savings and income are both adequate. Studies have found that growing up in poverty can have an immense impact on mental health and lifelong attitudes and wellbeing, irrespective of financial status and stability as an adult.[4]

Whether stemming from a material shortage of money, precarity and worry about the future, or simply issues with budgeting and planning, identifying and understanding the root causes of financial anxiety is the first step to managing it. The self-assessment below examines four domains: shortage of money, lack of control, rumination and worry, and short-term focus. At the end of the survey, we’ll offer some tailored guidance based on your responses. 

Disclaimer

This assessment is based on the Psychological Inventory of Financial Scarcity (PIFS), a psychometrically-validated tool that is used in clinical and research settings to assess the psychological impact of real and perceived financial scarcity. While this is a metric used by doctors and mental health professionals to assist with diagnoses and as a part of health assessments, this survey should not be used on its own as a self-diagnosis. The advice given here is based on your responses to survey questions, but as we do not know the details of your financial or social situation, you should act on it only in accordance with your own needs and abilities.

References

  1. Cummins, R. A. (2000). Personal income and subjective well-being: a review. Journal of Happiness Studies, 1, 133-158.
  2. Sargent-Cox, K., Butterworth, P., & Anstey, K. J. (2011). The global financial crisis and psychological health in a sample of Australian older adults: A longitudinal study. Social Science & Medicine, 73(7), 1105–1112. https://doi.org/10.1016/j.socscimed.2011.06.063
  3. van der Velden, Peter G., Contino, C., Muffels, R., Verheijen, M. S., & Das, M. (2023). The impact of pre- and post-trauma financial problems on posttraumatic stress symptoms, anxiety and depression symptoms, and emotional support: A prospective population-based comparative study. Journal of Anxiety Disorders, 96, 102714-102714. https://doi.org/10.1016/j.janxdis.2023.102714
  4. Evans, G. W., & Cassells, R. C. (2014). Childhood poverty, cumulative risk exposure, and mental health in emerging adults. Clinical Psychological Science, 2(3), 287-296. https://doi.org/10.1177/2167702613501496