Experts warn that poor financial health can lead to mental health problems. Unexpected expenses, the inability to save for retirement, and medical treatments that involve a significant outlay are often factors that can trigger stress, anxiety, and other disorders.

Poor financial health can affect a person’s mental health. The numbers speak for themselves. According to the American Psychological Association in the report ‘Paying with our health,’ the chronic stress caused by financial challenges affects 26% of Americans. Common challenges include unexpected expenses, lack of retirement savings, and cost-effective medical treatments. Families with children, younger generations, and people with low incomes (less than $50,000 a year) suffer the most health problems due to financial stress.

According to the report, ongoing anxiety about money can lead to high-risk behaviors such as alcohol and drug abuse, excesses with food, or sedentary behaviors that contribute to worsening a person’s mental and physical health. The most affected sectors of the population are women and young people, as they have a direct impact on the consequences of financial mismanagement by families.

Experts say there is a clear relationship between students’ financial difficulties and mental health problems. A Springer Link study, involving more than 400 British students, reveals that financial problems can lead to stress, depression, anxiety or alcoholism.

These ills are compounded in cases where young people are forced to drop out of school or are unable to go to university for economic reasons. On the other hand, alcoholism or anxiety caused by poor financial health can make the student’s economics worse, causing the situation to go backwards in both directions.

However, despite the complexity of this situation, there are ways to alleviate it. These are some of the steps Mental Health First Aid International recommends to improve the financial and mental health of those affected.

  1. Mentalizing: It is necessary to make the person see that ignoring problems is not going to make them go away. The longer it takes to take action, the more complicated the solution will be.
  2. Find a financial advisor: the time has come to put the finances in order, and to do so, it is advisable to ask for the help of an expert who analyzes the monetary situation of the person and indicates the steps to improve it. It is becoming increasingly common to find digital solutions that allow more inclusive access to this type of advice.
  3. Get informed: seek possible financial aid at the local or state level.
  4. Taking care of bills: If the person has trouble dealing with basic gas, electricity or water costs, it is advisable to contact the suppliercompanies and learn about social bonuses and other aids for customers with financial problems.
    Delay important expenses: It is recommended that the person put the highest-cost purchases on hold until he or she talks to a financial advisor and sees with him possible financing formulas.

Having good financial health and avoiding stress and other disruptions from monetary problems can be achieved, in many cases, with proper financial planning. Experts indicate that it is advisable to allocate a maximum of 50% of the revenue to fixed expenses, 30% to variable expenses and 20% to savings.