How Financial Stress Affects Your Health

Are worries about tariffs, inflation, and the future of your 401(k) causing you to stress eat and lose sleep? Unfortunately, for most people, financial stress is nothing new.

“Studies have shown for decades that financial concerns are one of the leading causes of stress in our country, and until it is no longer a taboo topic, that’s not likely to change,” says Ashley Agnew, director of financial wellness and certified financial therapist at Centerpoint Advisors in Needham, Massachusetts.

Chronically high levels of anxiety about money can take a toll on your well-being, and even increase the likelihood of chronic illnesses like high blood pressure and heart disease.

All of this points to the importance of learning coping strategies that can help you manage financial stress and protect your mental and physical health.

“Normal financial stress tends to be situational; it’s often based on a specific event like moving or the holidays,” says Megan McCoy, PhD, associate professor at Kansas State and certified financial therapist in Manhattan.

If financial stress isn’t based around a specific event, and lasts more than three months, this may be a sign that your stress is turning into financial anxiety that may negatively impact your health, says Dr. McCoy.

According to McCoy, signs that could indicate severe or chronic financial stress include:

• Persistent worries, panic attacks, excessive rumination about bills or debts, and fear of checking bank balances — or going in the other direction, and compulsively checking bank or retirement balances
• Physical symptoms like recurrent headaches, stomachaches, or sleeping difficulties due to financial woes
• Avoiding looking at or paying bills
• Overusing alcohol and drugs to cope
• Overspending due to anxiety or hopelessness
• Relationship issues such as frequent arguments, withholding financial information from a partner, and lying about spending

Financial stress that’s gotten out of control can have health consequences.

Mental Health Issues

“People who have higher financial stress are at greater risk for anxiety disorders and clinical depression,” says McCoy.

Shame and guilt can creep in due to financial stress, says McCoy. “Clients in financial therapy often describe feelings of unworthiness or guilt around unpaid debts or perceived poor financial decisions, making mental distress even worse,” she says.

Financial stress can also lead to negative coping behaviors, says McCoy. “Alcohol or drugs may be used to numb stress, creating dual crises — financial and addictive — that require integrated therapy approaches,” she says.

Sleep Problems

“People often report difficulty falling asleep or staying asleep when debts or bill payments weigh heavily on the mind,” says McCoy.

Heart Disease and Other Chronic Illness

Stress triggers a series of physical reactions — your heart rate quickens, muscles tense, and breathing quickens — thanks to increased levels of the stress hormones cortisol and adrenaline (which act like messengers, readying the body to cope with a perceived threat).

And for people who already have chronic conditions or health issues, financial stress may exacerbate the problems. “When money is scarce, people are more likely to skip doctor visits, ignore recommended treatments, or fail to fill prescriptions,” says McCoy.

There are ways to manage financial stress that don’t involve winning the lottery. Remember, financial wellness is about feeling secure about your money matters (even if funds are low) and not feeling overwhelmed to the point where it takes a toll on your health.

“Acknowledging the problem is essential — avoidance only heightens fear,” says McCoy.

With her clients, McCoy normalizes stress around money and finances by reminding clients that many people struggle with the same issues and that help is available. “This helps them move past shame to tangible action,” she says.

From a financial therapy standpoint, improvement usually takes both practical financial steps and attention to emotional/behavioral patterns. McCoy suggests a potential plan of attacking your financial fears:

Create a realistic budget or spending plan. Track income and expenses, prioritize needs, and set attainable goals, like saving to create a small emergency savings target.

“A values-based approach can help you align spending with personal or family values, making the process more meaningful and less punitive,” McCoy says.

Engage professional support. Work with a financial counselor or planner to help with debt management, savings strategies, and long-term planning.

These financial wellness specialists include certified credit counselors, accredited financial counselors (AFC), or financial therapists who are trained to integrate financial knowledge with mental health.

Leverage workplace or community resources. Employee Assistance Programs (EAPs) often provide free short-term counseling and financial education. Additionally, community nonprofits like cooperative extension offices or local credit unions may host free classes on budgeting or debt management.

Incorporate stress-management techniques. Consistent exercise, mindfulness, or journaling about money anxieties can help reduce the emotional intensity of financial worries.

Build an emergency savings fund a little at a time. Even $50 a month can accumulate into a basic safety net. Small, steady progress fosters a sense of accomplishment, which is key to reducing stress.

• A certain amount of stress is normal, particularly when it is situational and related to a specific event.
• Chronic financial stress, however, can harm both mental and physical health, increasing the risk of anxiety, depression, sleep problems, and heart disease.
• While you can’t control all your financial stressors, you may be able to manage your response through realistic budgeting, professional support, and stress-reducing habits.