Managing finances can be a daunting task, especially during the holiday season. It's no secret that financial stress is linked to feelings of insecurity and inadequacy. Many Americans suffer from PTSD-like symptoms due to financial stress, which can lead to detrimental financial habits like avoidance, denial, restlessness, irritability, and withdrawal from others. If you are dealing with financial PTSD, here's what you need to know.

What Causes Financial Trauma? 

A combination of inconsistent, low, or lost income, limited savings, and significant credit card debt can cause financial trauma. Financial emergencies, missed payments, housing troubles, and persistent debt collectors can also trigger it. Additionally, it can be rooted in generational, relational, societal, or systemic factors. For instance, you may have inherited a scarcity mindset from your family or succumbed to societal pressures to overspend during the holiday season or at other times. 

Symptoms of Financial PTSD

Financial PTSD can manifest in various ways, such as avoidance, overspending, and difficulties setting boundaries. Avoiding dealing with money due to fear, pain, or insecurity is common but can harm your financial well-being in the long run. Overspending and compulsive spending are also common responses to financial trauma. Struggling to establish financial boundaries could indicate an underlying trauma that affects your self-worth. 

Overcoming the Trauma

If financial issues cause anxiety, it's crucial to take a step back and regain emotional balance. Be mindful of your emotional state when dealing with financial challenges, and take measures to soothe your nervous system. Remember that your intrinsic worth remains intact regardless of your financial history. Reducing shame associated with your financial behavior and distancing yourself from negative beliefs can be helpful. Discuss your financial concerns with someone you trust, such as a loved one or a financial therapist. Working together and capitalizing on your distinct financial approaches can help if you have a partner. Understanding your financial mindset, which guides how you cope with financial stress, is helpful. The Financial Therapy Association is a great way to find a resource to help you deal with both the practical and emotional aspects of managing money. They have a directory of therapists, which you can find here. Be sure to reach out for assistance when you need it.