May is Mental Health Awareness Month and research continues to show a strong connection between financial stress and struggles with physical and mental health. Read on for facts about money and mental health, how financial education is one part of the solution, and activity ideas to prepare students for difficult financial decisions. 

When you're struggling financially, you're likely to be suffering mentally. And the reverse is also true - people experiencing mental health problems are more likely to have trouble earning money, managing money well, and controlling spending.

10 stats that bring attention to this connection 

1. Among the serious life challenges that people often face—including divorce, disability, caregiving, illness, and bereavement—financial strain is the most detrimental to health, according to a study published earlier this year by a team of British researchers. (Time)
2. People with medical debt are also three times more likely than others to grapple with mental health issues like anxiety and depression. (Time)
3. 54% of U.S. adults with debt say they always or often feel stressed because of their debt. (Forbes)
4. Due to debt-related stress, 48% reported sleep problems, 40% had higher anxiety, 38% led diminished social lives and 34% experienced depression. (Forbes)

5. When people are stressed about money, it often leads to even more financial trouble. In fact, 72% of respondents say they’re somewhat or very likely to go further into debt when they're feeling stressed. (Forbes)

6. A significant 28% of those surveyed shared that carrying debt triggers impulsive spending. This means that, for some, the pressure and stress of owing money can sometimes lead to seeking temporary relief or comfort through buying. This, in turn, exacerbates the financial strain. (Forbes)

7.  65% of U.S. adults who say money negatively impacts their mental health cite inflation and/or rising prices as a reason. (Forbes)
8. Financially anxious and stressed individuals are less likely to plan for retirement (WSJ)
9. Around half (51 percent) of women say money negatively affects their mental health, compared to 42 percent of men (Bankrate)
10. Research suggests that people who engage in sports betting appear to develop gambling problems at particularly high rates and are at higher risk for mental health and substance use problems compared with other kinds of gamblers. (APA)

Your work teaching personal finance to the next generation is part of the solution. 

Recent research published in PLoSOne underscores the importance of financial literacy, mental budgeting, and self-control in shaping an individual’s financial well-being. The authors call for policy interventions to implement effective financial education initiatives that focus on improving financial literacy. 

While financial behavior changes alone are not enough to heal mental health challenges, these activities may help students be better prepared to navigate whatever money stressors come their way throughout their lifetimes.

5 Activities to Help Students Prepare

Create a plan to improve financial habits

The activity ANALYZE: Change a Bad Financial Habit teaches students about how habits work and then has them apply that knowledge to a financial habit they'd like to change.

Explore how life experiences shape money beliefs

Use MOVE: Your Money Values to give students a chance to consider how individual values and circumstances impact people’s financial decisions.

Introduce budgeting skills

In MOVE: Build Your Budget, students collaborate to build a zero-based budget for the class.

Share strategies for debt reduction

Use CASE STUDY: Get Me Out of My Debt Dungeon! to have students role play how they would advise someone in financial distress.

Understand the risks of gambling and sports betting

Stay tuned in early June for the release of our new Gambling and Sports Betting Mini-Unit, which will help you equip students with the knowledge and tools they need to make informed decisions about gambling.

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Want to dig deeper? Listen to our podcast episode with Dr. Nicole Huff on the relationship between financial and mental health. 

About the Author

Hannah Rael

As NGPF's Marketing Communications Manager, Hannah (she/her) helps spread the word about NGPF's mission to improve the financial lives of the next generation of Americans.