In late February, phones buzzed with news alerts reporting U.S. sanctions aimed at straining the Russian economy, after its invasion of Ukraine. The Financial Times, Barron’s and other financial media reported subsequent efforts by U.S. banks to ward off potential Russian cyberattacks on U.S. financial institutions in retaliation.
Major investment firms, like Charles Schwab, sent emails aiming to put their clients’ minds at ease as investment accounts tanked. These factors all add stress, worry and anxiety to peoples’ lives. “It’s natural to feel unsettled right now – these are uncertain times,” the Schwab email read. The COVID-19 pandemic has caused a global mental health and financial crisis, too. Approximately 64% of Americans reported feeling stressed about money, according to the American Psychological Association’s 2020 Stress in America survey. Even before the pandemic, experts at financial wellness company Payoff coined the term “acute financial stress,” for those who experienced financial stress at levels that resembled post-traumatic stress disorder. In the study, more than 20% of adults and 36% of millennials experienced financial stress at levels that qualified for a diagnosis of PTSD. “Financial anxiety is one of those things – even though it is not a DSM-5 diagnosis – our clients deal with anxiety about their finances, and it is often exacerbated by our sociopolitical climate – recession, increased gas and grocery prices …” says LaTonya M. Summers, Ph.D., publisher of Black Mental Health Today, in a recent interview. Other stressors: Work and community According to Linda Gallo, Ph.D., a professor in the psychology department at San Diego State University, people with lower incomes may also experience exposure to stress across other parts of their lives. They may work in demanding jobs without much control. Working environments can be stressful, including noise and exposure to toxins. And lower-income community environments with less green space, more traffic, crowding or even violence can add to the stress they feel. “Although clinicians do not recognize financial anxiety as a treatable disorder, the psychological community acknowledges it as a significant issue,” Summers noted in her research published in a 2018 edition of The Journal of Individual Psychology. “It is useful to use generalized anxiety disorder as a framework to conceptualize and define financial anxiety.” From this perspective, financial anxiety is defined as chronic and excessive worry about money that makes it difficult to carry out daily activities and responsibilities.”Summers also says, “Therapists can identify financial anxiety by clueing into certain behaviors their clients may exhibit, including avoiding bills and hoarding money.” In her research – coauthored by Daniel Gutierrez – Summers noted that patients also exhibit physical symptoms ranging from restlessness, fatigue and difficulty concentrating to irritability, sleep disturbance and muscle tension. They can also start to withdraw socially and turn to unhealthy coping mechanisms, such as drinking, drugs or gambling. Once identified, Adlerian therapy has been found to be effective in changing maladaptive behavioral patterns and distorted thinking, especially in those whose self-worth is tied to financial status, according to Summers. Exercises like replacing catastrophic thinking with more logical and positive self-talk can help. And by taking stock of a person’s financial situation, identifying where money causes the stress and then creating a plan to reduce expenses or manage money more efficiently, stress can be managed.
First published in Black Mental Health Today, Spring 2022 (No. 3).