What is Financial Trauma? Understanding how our psyche impacts our spending
This Morning: Wind devours me like a whole life left open. Space, allowance, stars—everything I’ll take. — Hannah Bonner
What is Financial trauma?
Financial trauma is a profoundly distressing experience that arises from the ongoing stress of financial difficulties, a lack of resources, or the pain of economic abuse. Financial trauma is a deeply personal experience that varies from individual to individual. Many people struggling with spending and budgeting often carry the weight of early experiences that shape their ability to manage financial responsibilities. This journey can be intimidating, especially for those who have made sincere efforts to change their habits and approach their finances in a new way. It’s essential to recognize that these feelings are valid.
The emotional consequences of financial trauma
Financial issues can lead to significant emotional turmoil, often causing confusion. It’s completely normal to feel overwhelmed and stuck in a cycle of anxiety, fear, or anger during these challenging times. These emotions can trigger repetitive responses based on past experiences, making evaluating and managing your current situation difficult. Acknowledging that these reactions exist is crucial for examining the roots of your financial trauma.
How do I know if I am suffering from financial trauma?
How can you recognize if you’re dealing with financial trauma? It’s understandable to feel overwhelmed by the pressures of managing finances. One sign might be that you know you should create and stick to a budget, but you resist this idea. You may also feel the urge to avoid opening bills or feel anxious about making necessary payments. Sometimes, you may neglect essential spending when you genuinely need to prioritize it. Because your financial experiences are unique, signs that you may be struggling with your money concerns could manifest as binge eating, difficulty sleeping, obsessive thoughts, and compulsive behaviors.
How can therapy help address financial trauma?
Psychodynamic psychotherapy explores symptoms as reflections of deeper aspects of the self. Some psychoanalysts refer to this as the “afflicted ego” (Geltner, P.), which represents the part of the mind that experiences and reacts to the world based on past experiences and behavior patterns. This concept includes the repetition compulsion—the tendency to repeat past intrapsychic and interpersonal experiences—and the defensive structures that developed over time to cope with them. The afflicted ego operates in an emotional context rooted in the past rather than responding to the current interpersonal reality. In our work together, we will examine and soften the layers of defenses that prevent individuals from engaging in behaviors that can positively impact spending and finances. Addressing these emotional aspects aims to empower individuals to break free from restrictions, enabling them to access meaningful change and financial growth.
Working with a therapist who understands issues with money
Working with a therapist who understands financial issues is essential for addressing the difficulties and shame often associated with money. Discussions about financial competency and incompetence can be challenging, as they frequently evoke frustration and embarrassment. It’s understandable to want to take immediate action and make changes, especially when your financial situation feels overwhelming and disabling. A capable therapist will meet you where you are, acknowledge your determination to change, and respect your preferred pace. It’s vital to ensure that you have both emotional insulation and guidance for behavioral change. A qualified specialist should be able to provide the necessary balance to help you navigate these issues effectively.
Dealing with the lasting effects of financial trauma can be incredibly difficult, and it’s completely understandable to feel overwhelmed. The therapy process is often challenging and requires both time and effort, as our minds tend to defend against the pain. While seeking quick fixes during such trying times may be tempting, lasting change takes time. Contacting a specialized therapist as soon as possible is vital to establishing a more secure and confident sense of your financial identity.