Stressed About Money? Here’s How to Cope

Talk it out

Emily Garbinsky, an associate professor of marketing and behavioral science at Cornell University, says being open about your finances can help alleviate anxiety. “People think that talking about money is going to make them feel worse,” she says, but “it actually makes them feel better over time.”

Her research shows that consistently discussing money with a partner or friend reduces stress, particularly when the conversations focus on things the participants feel they can control, like their spending or saving behaviors. That helps establish a mindset that financial problems are solvable, not perpetual.

It’s especially important to discuss sensitive financial topics with your adult children, says Rachel Duncan, a certified financial therapist in Denver. Your kids will “want to have a compassionate conversation about money,” she says. “Getting the ball rolling can be uncomfortable at first, but it can deepen closeness.”

If money has been a source of contention, stress or conflict for your family in the past, consider consulting a financial therapist who can help facilitate these conversations.

Dig beyond the balance sheet

Financial stress isn’t just about dollars and cents — it’s also emotional. In Wealth Enhancement’s survey, 64 percent of Gen Xers reported having anxiety or frustration when thinking about their finances. Many said their financial situation negatively affects their self-worth.

Garbinsky says “financial mindfulness” — awareness of your finances and acceptance of your emotional responses — can help reduce stress.

That means doing the work to identify and address the root causes of your financial anxiety. Duncan often has clients engage in art therapy and journaling to help them process their emotions about money.

Take a holistic approach

After you’ve taken stock of your money and emotions, focus on finding ways to balance your financial priorities and mental health. Here are a few suggestions from the pros:

Create a pleasure list. Duncan says it’s important to find pleasures in everyday life that don’t cost a penny. Perhaps you enjoy chatting with friends on the phone or going on walks in the woods. Creating a list of free activities that you enjoy will help you fill your time without emptying your wallet. “Everyone should do at least one thing on their pleasure list every day,” she says.

Protect your well-being. Financial stress can chip away at your physical and mental health just as much as your bank account. “It has a lot of negative spillover effects,” says Garbinsky. A few science-backed tips:

• Move your body. Even light activities such as walking or stretching can help reduce cortisol levels and clear your mind.
• Stay social. “There’s nothing worse than struggling financially and then being isolated too,” says Faupl. Finding ways to connect with people, like meeting a friend for coffee, joining a sports league or volunteering at a food bank, can help combat loneliness.
• Practice mindfulness. Breathing exercises, journaling and meditation can help quiet negative thoughts.
• Improve your sleep hygiene. A recent study in the Journal of Business and Psychology found that workers who report greater financial strain, dependency on their job or work insecurity tend to experience poorer sleep quality and exhibit more symptoms of insomnia. Practicing good sleep habits, like limiting screen time before bed and creating a cool, dark sleep environment, can help break the cycle and make it easier for you to fall and stay asleep.

Assess how much you’re spending on others. “Older people sometimes over-support or over-give to their family in ways that put them in financial jeopardy,” says Duncan. If you’re accustomed to spoiling your grandchildren but your cash flow is tight, do fun activities with them that don’t involve gifts or money, such as taking them sledding or to a library event for kids. “Take all that incredible, generous spirit and shift it,” she says. “Plus, most adult children don’t want more junk. They just want you.”

Tap into free help. You don’t have to navigate financial stress alone or pay hefty fees for support from a professional. To find free financial wellness classes, check your local Area Agency on Aging using the federal Administration for Community Living’s Eldercare Locator; many libraries and community centers also offer them. If you need financial advice, the Financial Planning Association has 75 chapters and two state councils that offer pro-bono financial services.