Financial Well-Being and Mental Health: Exploring the Connection and the Financial Well-Being for All Bootcamp

The link between financial well-being and mental health is becoming increasingly evident, with financial struggles often leading to stress, anxiety, and other mental health challenges. According to the American Psychological Association (APA), 72% of Americans report feeling stressed about money at least some of the time. This financial stress can have a profound effect on mental health, contributing to feelings of anxiety, depression, and strained relationships.

However, improving financial literacy and gaining control over one’s finances can help reduce this stress. Financial therapy offers a valuable approach by addressing both the emotional and practical aspects of financial well-being. The Financial Therapy Association (FTA) defines financial therapy as a process that combines therapeutic and financial competencies to help individuals and families navigate the emotions, behaviors, and relationships tied to their finances.
 

How Finances Impact Mental Health

It’s no secret that financial instability can take a toll on mental health. According to the National Endowment for Financial Education (NEFE), financial stress is often linked to emotional and relational challenges. Financial struggles can result in feelings of shame, guilt, and hopelessness, and in severe cases, contribute to anxiety and depression.

A recent study by Salary Finance found that people with financial worries are five times more likely to feel anxious and four times more likely to experience depression. Furthermore, money-related stress can negatively impact job performance and productivity, exacerbating the cycle of financial instability.

On the other hand, improving financial literacy and gaining control over finances has been shown to reduce stress and improve mental health outcomes. A study from Northwestern Mutual found that 92% of people who feel financially secure also feel good about their overall well-being. Developing healthier financial habits not only boosts confidence but also helps reduce the stress caused by financial worries.

The Role of Financial Therapy

Financial therapy combines behavioral therapy and financial coaching to address the emotions and behaviors surrounding money. A certified financial therapist, like those supported by the FTA, is equipped to help clients work through money-related fears and build healthier relationships with their finances. This process not only enhances financial literacy but also creates a space to heal emotional wounds related to money.

In this growing field, professionals with backgrounds in mental health or financial planning offer tailored support, helping individuals break free from limiting beliefs and develop strategies for achieving financial stability. This approach not only helps individuals understand their financial situation but also equips them with the tools to manage emotional responses to financial stress.

Explore More: Financial Well-Being for All Bootcamp

For those looking to dive deeper into the intersection of financial well-being and mental health, the Financial Well-Being for All Bootcamp, on October 24, 2024 at 10 AM, offers an in-depth exploration of this vital topic. This free and virtual boot camp is designed to equip credit union professionals and members with practical tools and strategies to improve their financial health while addressing the mental and emotional aspects of money management.

The event will provide insights from financial education experts, equipping participants with the resources they need to tailor their programs, products, and services to better meet their members’ financial needs. Participants will also gain an understanding of the connection between financial health and mental wellness, helping them guide their members toward financial security and emotional well-being.

Why Attend?

The event will provide insights from financial education experts, equipping participants with the resources they need to tailor their programs, products, and services to better meet their members’ financial needs. Participants will also gain an understanding of the connection between financial health and mental wellness, helping them guide their members toward financial security and emotional well-being.

Register here