Financial PTSD
When unbidden overwhelming mental, emotional, and physical stress responses (often referred to as flight, flight, freeze) are triggered by financial issues, this is called Financial PTSD. This may come as a surprise, but Financial PTSD is quite common and affects between 20-30% of the population.
The term was coined by Dr. Galen Buckwalter a research psychologist who studied people's relationship with money. While he was creating a method of identifying people’s financial personality types, he noticed that some people elicited PTSD symptoms in response to their financial circumstances.
Common Symptoms
The mental, emotional and physical signs and signals are similar to other kinds of PTSD, the difference being in the situations that trigger you. Financial PTSD can manifest as a “big T” or “little t” trauma. Among the many possible symptoms, some common ones are a combination of the following:
Intrusive thoughts, Low Self Worth, Anxiety, Panic Attacks, Nervousness, Sleep Disturbances, Relationship Issues, Hypervigilance, Avoidance, Procrastination, Depression, Irritability, Angry Outbursts, Compulsions, Catastrophizing, Shame...and the list goes on.
Common Causes
Financial PTSD stems from not having enough monetary support and resources to meet the needs and expenses in your life over a short or long period of time. The economic, social, and cultural attitudes, practices, and structures within our society contribute to the complexity of this matter. The following factors have a significant impact on who is most susceptible to experiencing Financial PTSD:
● Low socioeconomic status and other cultural and class related inequities
● Intergenerational poverty
● Current, past, short term, or ongoing financial instability
● Sudden, and/or major losses in resources due to major life changes including divorce,
job loss, bankruptcy, etc.
● Significant fluctuations within the overall economy, such as inflation, recession, etc.
● Lack of sufficient access to practical financial training and education
A Paradox
Healing from financial PTSD presents a unique dilemma. On one hand, there is usually a need to make some practical changes in one’s life and situation to overcome the real-time issues around your finances. On the other hand, this kind of trauma can leave people feeling overwhelmed, hopeless, helpless, and paralyzed, so that it becomes difficult to figure out what to do, focus on a goal and achieve it. PTSD is characterized by overwhelm, which makes it hard to think clearly, focus, make a game plan, and follow through.
Addressing mental and emotional distress is key to creating more calm and peace of mind, while gaining more insight and perspective on the internal and external factors that have contributed to your trauma. EMDR is especially effective for integrating trauma and is highly recommended for those with financial PTSD. Somatic therapy is also highly beneficial when working to heal from financial trauma.
Hope is in the Healing
Support for Financial PTSD will be different depending on the individual, but commonly includes the following multi-faceted approach:
● Talking with and staying connected with trusted family and friends
● Meeting with a financial advisor or counselor
● Help with career development
● Work related education and training
● Human services supports
● Trauma informed psychotherapy
Talking about money is taboo in our culture in general, so when trouble hits people generally feel a lot of shame and the impulse to isolate. If you find yourself isolating, remember that Financial PTSD is much more common than you think. Talking with family and friends and sharing what you are struggling with will get you out of isolation, and connect you with others who, chances are, have been there, are going through something similar, or may be able to help.
The key to taking back your life when you have been hit by financial PTSD is developing resilience on the inside and on the outside. Seek out financial and career advisors and professionals for practical budgeting, strategizing, financial planning, job searching, and education. For emotional support and healing seek out those people in your life who you trust that know and love you, and get some professional mental health support too. If you are interested, reach out and set up a free initial consultation with one of our psychotherapists today.
Learn more about PTSD therapy in Colorado. Serving Boulder, Longmont, Denver.
