8 Ways to Cope With Money Anxiety and Financial Worry
Living with money anxiety and feeling financial stress can make it hard to see the future you want for yourself. Trying to balance school work with paid work, needing to help support your family as a young person, and losing your job can be a lot of pressure. And saving for the future can seem impossible when just getting by is a struggle.
These feelings are understandable. Here are some ways to cope when financial anxiety and stress strike:
Know That You’re Not Alone
It may seem like your friends or the people you follow on social media are financially stable, and that could make you feel like the odd one out for being worried about your finances. But it’s normal for young people to feel stress, fear, or frustration when they think about the future. One in six young adults experiences challenges repaying debt burdens, according to Urban Institute. You may have been raised by parents and caregivers who lived through the Great Recession and perhaps you have faced pandemic job loss or financial instability yourself. There are real reasons for your feelings, and you are not alone.
Recognize That the Barriers Are Real
Many of our systems are broken by design. Wages are too low for many people, and some lenders take advantage of people who need money right away. Historically, institutions and systems have perpetuated disparities based on a person’s race, sexual orientation, nationality, and other factors. That prejudice and bias has made it harder for groups of people to accumulate wealth, and it means we’re not all on equal footing. These barriers are real. Coming up against them is a very real source of stress and despair.
Think About Your Relationship to Money
It’s helpful to consider your own relationship to money and where it comes from. The way your family handles finances, among other factors, may shape how you view money. Maybe your parents had a hard time paying bills and you had to support your family starting at a young age. Or maybe your family had wealth and used it as leverage in stressful situations. Connecting those dots and identifying your emotions may help get you on the path toward easing some of your anxiety about finances.
Take Action
Dread or worry can often creep in when things feel — or are — out of your control. Taking action can empower you to fight those feelings. Focus on the basics, such as putting a small amount in savings, creating a basic budget, or talking to a financial expert for advice.
Learn More About Managing Money
Just like taking action, learning more about managing money can help you feel like you’re in control. You can find financial educators or counselors through community organizations, your employer, or your school (whether it’s high school or college). Keep in mind that everyone has a different financial situation. Always check with reputable sources before making financial decisions based on advice you received from a financial influencer on social media. What worked for one person may not be the best move for you.
Find Mentors
Seeing mentors who share your culture or identities can show you that people with experiences similar to yours can have financial success. Explore organizations at your school to connect with first-generation college graduates, people of color, trans people, or formerly homeless youth who mirror your experiences and who are financially stable. They’ll be able to understand your unique challenges and give you hope for the future.
If you have trouble finding someone in your community to offer financial advice, talking with a mentor of any kind may be beneficial.
Get the Financial Help You Need
You’re already working on learning about finances, but finding specific financial resources can be very helpful too. Here are some great resources that address specific issues related to money anxiety:
- On Our Own: A Survival Guide for Independent LBGTQ+ Youth is a resource for teens who don’t have financial support from their families and covers everything from getting identification to creating a budget. It’s designed for LGBTQIA+ teens, but anyone can benefit from it.
- The Student Debt Crisis Center provides information about college loan repayment.
- Creating a Healthier Life has worksheets on pages 11 and 22 for creating financial wellness.
Get the Emotional Help You Need
Start with the steps above. If you’re still struggling with financial worry, you may need professional support. A therapist or counselor can help you process your feelings, especially when you’re feeling stuck. Your school or community mental health center may be able to help you find affordable health care.
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