Why we need to talk about money and mental health

Money and our mental health are intrinsically linked. So, in this post, we’re going to look at the relationship between the two. We’re also going to look at what you can do if you or someone you know is struggling.

How your mental health can affect your finances

Sometimes, events in your life can lead to problems with both mental health and money. For example, you could experience a relationship breakdown, job loss, or physical health issues.

But even when you’re not experiencing problems in other areas of your life, mental ill-health can lead to trouble with your income, your spending, and your ability to manage money.

Your income

If you can’t work, or have to take time off work, your income may be affected as a result. The Money and Mental Health Policy Institute recently found that people who have experienced mental health problems have a lower average income than those who have never had a mental health problem.

Your spending

A number of mental health problems can affect how you spend money. For example, you might make impulsive credit card purchases that can have long-term effects on your finances and your credit file. Or if you experience low motivation, you may end up spending money on conveniences, such as takeaway deliveries.

You may also find it harder to save money on essential services. Citizens Advice have found that, on average, someone with a mental illness pays over £1,000 more for services per year. (You can read about this research in this article about mental health issues and money.) This is largely because people experiencing mental health problems may find it harder to ‘shop and switch’.

Dealing with debt and mental health problems

You might find it difficult to do things like talking on the phone, going to the bank or opening your post. You may also forget to do things you need to do, like paying bills. All of these can make it easier to fall into problem debt, and harder to deal with debts once they start to mount up.

How your finances can affect your mental health

Sometimes there is a direct link between money and mental health. Worrying about money might cause you to feel stressed, anxious or depressed. But there are also other ways money worries can affect your mental health:

Work

Some people find it difficult to do their jobs while experiencing mental health problems. But they might feel unable to take time off because of their financial worries.

Some people with mental health problems claim benefits. This can help if you need to stop work or get a little extra income from disability benefits. (See the link to our benefits calculator under ‘Getting money advice and help’, below.) However, some people find that dealing with the benefits system can have a negative effect on their mental health.

And if you can’t afford to pay for the basics – like food, shelter, and medication – your mental health may suffer, along with your physical health.

Relationships with others

Problem debt, and other financial problems, can put a lot of strain on relationships and families. People in problem debt may try to keep it from their partners, which can result in a lot of stress. And debt can even lead to the breakdown of a relationship. This in turn is often a huge mental health challenge.

Conversely, the fear of financial difficulty sometimes makes it harder to leave an unhappy relationship. You’re three times more likely to experience depression in an unhappy relationship, according to Relate.

Sleep

Getting plenty of good-quality sleep is vital for your physical and mental wellbeing – and money worries can impact your sleep! Customers tell us all the time that they were struggling to sleep until they called us.

How has the pandemic affected our money and our mental health?

Many people have seen their finances, and their mental health both hugely impacted by Covid-19 and the resulting restrictions on our way of life. You might find these blogs helpful:

Coronavirus and your mental health

Looking after your mental health as lockdown begins to lift

Where to get help if you’ve been laid off

It’s good to talk

Money and mental health problems are still two of the things we find it hardest to talk about. But in both cases, talking about it is the first step to getting help. However bad you think things are, there is always a solution.

Where to get help

If you’re concerned about your mental health or someone else’s, Mind can give you advice on your next steps.

Call 999 if you are in immediate danger. If you need someone to talk to, the Samaritans are there 24 hours a day, 365 days a year.

Getting money advice and help

If you are struggling with money it may be worth looking into whether you are entitled to any financial help. Have a look at this benefits calculator on our website.

And if you’re struggling with your debts, get specialist debt advice as soon as you can. You can find a source of debt advice on the Money Advice Service website, and you can find details of the range of debt solutions available in the UK on our website.