Could you be suffering from financial trauma?

In our ever-evolving society we are the most mentally health-conscious than we’ve ever been. Trauma has become a buzz word in media today and many people are seeking help to undo the years of repressed memories that past traumas have caused them. But what about financial trauma? Is that even a real thing? Though you would be hard pressed to find financial trauma listed in the criteria of PTSD within the DSM-5, it doesn’t negate the visceral effects of financial trauma. As best-selling author Dr. Gabor Mate puts it, “Trauma is not what happens to a person, but what happens within them. In line with its Greek origins, trauma means a wound - an unhealed one, and one the person is compelled to defend against by means of constricting his/her own ability to feel, to be present, to respond flexibly to situations.”

So I propose the question again, is financial trauma a real thing? The answer is a resounding yes! One can develop an unhealed wound to finances. Here are some examples of what a traumatic relationship with money might look like:

• Negative thought patterns related to money

• Chronic worrying about finances

• Overspending

• Hoarding

• Displaying careless or destructive behaviors around finances

• Fear when spending money

Financial trauma can be caused by learned generational behaviors to finances, inadequate financial resources, or abrupt financial loss, among many other factors. As our present economy continues to head towards a recession and inflation continues to rise, anxiety surrounding financial means is likely to increase. However, there are ways to cope by seeking help from a professional to explore the root of your trauma and to learn effective ways to cope and also challenge unhelpful mindsets towards money. Also, seeking out a financial planner to help develop practical strategies and further understanding on money mindsets.