Financial stress is about much more than just balancing the books. According to clinical psychologist Dougal Sutherland of employee wellness service Umbrella, money worries can affect everything from our relationships and self-esteem to our physical health, creating a cycle that can be difficult to break.

“Finances are obviously so crucial to our lives and such a fundamental part of them that if you see that fundamental pillar being weakened or under threat, it can create a whole sense of angst and anxiety,” he says.

The Mental Health Foundation identifies a range of emotional impacts associated with financial stress, including:

• Stress
• Worry
• Anxiety
• Frustration
• Shame
• Guilt

Money worries can affect sleep, concentration, digestion, and appetite. It can leave people feeling persistently tired, low in energy and generally lacking in enjoyment of life. 

“People often wear their stress as physical symptoms,” Sutherland says.

“A lot of people talk about having bad skin or bad hair or that I'm sick more often, or I just notice a lower level of physical health in general. And that can be part of stress.”

The impacts can flow through to relationships with money, a common source of arguments amongst partners, he says.

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A dangerous cycle

Sutherland says financial stress can contribute to depression and impact self-worth.

“If you don't have enough, if you don't feel like you're able to provide for your family or ‘I'm not able to do these things’, it can have a real impact on people’s sense of  self-worth as well.”

Feelings of shame and embarrassment around money problems can make it difficult to seek help, particularly when money remains a topic many New Zealanders are uncomfortable discussing.

“We don't tend to talk about money because it's quite awkward,” Sutherland says.

The overall result can be a vicious cycle. Stress can make it harder to think clearly, which in turn can affect financial decision-making at the very time people need to make important choices.