May is Mental Health Awareness Month, a timely reminder that financial well-being and mental well-being are closely connected. While money can be a practical tool for meeting needs and building security, financial stress can also weigh heavily on mood, sleep, relationships, and decision-making. At the same time, mental health challenges can influence spending, saving, and planning behaviors in ways that may be hard to recognize in the moment.
This article is for educational purposes only. It is not financial, investment, tax, or legal advice. If you’re experiencing persistent stress, anxiety, depression, or thoughts of self-harm, please seek help from a qualified mental health professional or call/text 988 in the U.S. for the Suicide & Crisis Lifeline.
How money can affect mental health
1) Financial stress is a common and real source of anxiety
When bills, debt, or uncertainty pile up, it can trigger a constant “fight-or-flight” feeling—worrying about what happens if the car breaks down, hours get cut, or prices rise again. Over time, this can contribute to irritability, difficulty concentrating, and sleep problems.
In national surveys, adults frequently report that money is a significant source of stress. For example, the American Psychological Association has repeatedly found that finances are among the most commonly cited stressors in the U.S. population. (APA, Stress in America reports: https://www.apa.org/topics/stress)
2) Chronic stress can change how we think and decide
Under stress, the brain tends to prioritize short-term relief over long-term outcomes. That can show up as avoidance (not opening statements), decision fatigue (putting off calls or paperwork), or “quick fixes” (taking on expensive debt, missing insurance deadlines, or neglecting important forms).
The Consumer Financial Protection Bureau (CFPB) describes how financial stress can make it harder to process information and follow through, which can create a cycle where stress leads to decisions that generate more stress. (CFPB, financial well-being resources: https://www.consumerfinance.gov/consumer-tools/financial-well-being/)
3) Shame and silence can make the problem feel bigger
Money stress often comes with embarrassment—especially for people who feel they “should” have it together by a certain age or life stage. That shame can reduce help-seeking and increase isolation, which often intensifies anxiety or depression.
Mental Health America notes that financial concerns can be linked with mental health struggles and can make it harder to seek care or support. (Mental Health America, resources on mental health: https://mhanational.org/)
How mental health can affect money
1) Depression can reduce energy, organization, and follow-through
Depression often affects motivation and executive function—tasks like planning, sequencing, and completing steps. That can translate into missed bills, unopened mail, delayed tax prep, or difficulty taking action even when action would be helpful.
The National Institute of Mental Health (NIMH) outlines common symptoms of depression, including fatigue, difficulty concentrating, and loss of interest—factors that can interfere with day-to-day financial tasks. (NIMH, Depression: https://www.nimh.nih.gov/health/topics/depression)
2) Anxiety can cause avoidance—or over-control
Anxiety can lead to avoiding financial information (because it spikes worry), or it can lead to over-monitoring and constant checking. Either pattern can be exhausting. Avoidance can allow small issues to become bigger; over-control can heighten stress and reduce quality of life.
Anxiety disorders are among the most common mental health concerns, and symptoms like persistent worry and trouble concentrating can interfere with daily functioning. (NIMH, Anxiety Disorders: https://www.nimh.nih.gov/health/topics/anxiety-disorders)
3) Substance use can increase financial instability
Substance use disorders can affect employment stability, increase medical and legal costs, and contribute to impulsive decisions. They may also strain relationships and support systems that help people navigate financial challenges.
The National Institute on Drug Abuse (NIDA) provides research-based information on how substance use can affect health, families, and daily life. (NIDA: https://nida.nih.gov/)
4) Major mental health episodes can create “administrative overload”
During periods of acute mental health difficulty—such as severe depression, intense anxiety, or other episodes—ordinary tasks can feel impossible. Even people who are typically organized may fall behind on paperwork, benefits forms, or account maintenance.
If you’ve ever felt this way, it’s not a character flaw. It’s a human response to cognitive and emotional overload.
Practical, non-clinical steps that may help (without giving financial advice)
Because this is an educational post (not advice), the ideas below are general and may or may not fit your situation. Consider them as options to discuss with trusted professionals.
1) Name the stressor and reduce it to one next step
When money worries feel “everywhere,” try writing down one specific concern (e.g., “I’m anxious about credit card balances”) and one next action (e.g., “gather statements in one folder”). A single achievable step can reduce overwhelm.
2) Use “automation” to reduce decision fatigue
For some people, setting up automatic bill pay and automatic savings (when appropriate and feasible) can reduce the mental load of remembering due dates. If automation isn’t feasible, a simple calendar reminder may still help.
3) Create a “money meeting” routine that is short and predictable
Instead of trying to tackle everything at once, consider a brief weekly check-in (10–20 minutes) to review upcoming bills and account balances. Keeping it short can help make it less intimidating.
4) Consider separating roles: “support for money” and “support for mental health”
A financial professional may help you organize information and discuss goals, while a mental health professional can help you address anxiety, depression, stress responses, or relationship dynamics around money. You don’t have to choose one or the other.
5) Know when it’s more than stress
If worry or sadness is persistent, interferes with work or relationships, increases substance use, or leads to thoughts of self-harm, it’s important to seek professional help. In the U.S., you can call or text 988 for immediate support. (988 Lifeline: https://988lifeline.org/)
A helpful perspective: you’re not alone, and you’re not behind
Money can be emotional because it’s tied to safety, identity, family expectations, and uncertainty about the future. If financial stress has impacted your sleep, mood, or relationships—or if mental health has made financial tasks harder—you’re not the only one.
Mental Health Awareness Month is a good moment to normalize these conversations. If you’d like, you can bring questions to the professionals you trust—whether that’s a therapist, a financial professional, or both—so the burden doesn’t stay stuck on your shoulders.
Sources (for further reading):
- American Psychological Association (APA), Stress resources and reports: https://www.apa.org/topics/stress
- Consumer Financial Protection Bureau (CFPB), Financial well-being: https://www.consumerfinance.gov/consumer-tools/financial-well-being/
- National Institute of Mental Health (NIMH), Depression: https://www.nimh.nih.gov/health/topics/depression
- National Institute of Mental Health (NIMH), Anxiety Disorders: https://www.nimh.nih.gov/health/topics/anxiety-disorders
- National Institute on Drug Abuse (NIDA): https://nida.nih.gov/
- 988 Suicide & Crisis Lifeline: https://988lifeline.org/
- Mental Health America (MHA): https://mhanational.org/