Money problems can affect teen mental health in several ways. Under financial stress, some teens may feel anxious or responsible for helping their family. Others may experience lasting difficulties linked to childhood financial hardship.
Helping your teen navigate financial stress begins with understanding how it can affect teen mental health. In this article, you’ll learn:
Financial stress is the emotional and psychological strain that’s caused by money-related problems. Financial well-being includes being able to meet current and ongoing financial obligations.[1] When this ability is reduced, families can experience stress.
Financial hardship can be brought on by:[1]
Family changes like financial stress, as well as things like divorce, parental illness, and moving, can put significant strain on the whole family system. Even when you try to keep adult concerns from your children, it’s likely that they have some sense of the difficulties.
Crucially, “financial stress” doesn’t always mean poverty. Some of the research discussed in this article is centered around families living in poverty; other sources examine financial strain more broadly. Many families can face financial insecurity, even those with higher incomes.[2]
What matters when it comes to financial anxiety in teens is the effect of money problems on teen mental health. This can be seen in the following research:
So, while poverty and teen mental health are closely linked, money problems in middle- and higher-income families can still affect well-being.
Research shows that children and teenagers are more likely to struggle with mental health difficulties if they grow up in a family that has significant debt or a low income. Children in these situations report feeling:[3]
For some teens, these feelings may persist and contribute to longer-term mental health difficulties.
One of the main ways financial stress impacts teen mental health is by creating anxiety. There are several different anxiety disorders, characterized by:
This may occur in children witnessing their parents’ financial stress, as they’re exposed to a high sense of risk.[4] Anxiety may reflect a desire for control, or it could link to a belief that the world is risky and difficult.
Research reported by The Children’s Society found that one fifth of children said that they were “always” or “often” worrying about their family’s finances and that half worried about it “sometimes.”[2]
“Parentification” occurs when parents impose inappropriate expectations on their children to:
Typically, it’s talked about in the context of children caring for their younger siblings or taking care of their parent who may be struggling physically or emotionally.[5] This goes beyond normal and appropriate childhood responsibilities such as household chores. Instead, it refers to excessive or developmentally inappropriate levels of responsibility.
This phenomenon tends to occur in stressed family systems. Whether there is disability, alcoholism, divorce, or financial stress, parentification can occur unintentionally when the family system is under strain.[5]
In the context of financial strain, children might be parentified in the following ways:
Parentification can affect a child’s psychology and well-being. It is associated with:[5]
Parental financial stress may be experienced by teens who witness their caregivers trying to cope with their own money-related stress or depression. This can be hard on children, and witnessing conflict about finances is known to be harmful.[3]
Children who grow up in financial instability are more likely to experience turmoil and conflict.[4] This can put them at risk of emotional and behavioral issues, like those mentioned above. Witnessing conflict at home may make children feel scared, which can lead to:
Depression is another risk of growing up with financial issues. Research suggests that this link is due to exposure to cumulative risk. This means that it’s not just the money-related concerns, but other poverty-related social challenges that come with it.[4]
Some young people contacting support services described financial pressures affecting their self-esteem and making them feel like a burden. Experts find children growing up in a financially strained environment may struggle with their self-esteem, particularly if they compare themselves to their peers who can afford what they can’t.[6]
Children in these circumstances may feel like a burden, feel a lack of independence and autonomy, and experience poor relationships with family members.[6] These factors may be risk factors for developing depression, along with other mental health issues.
Mission Prep is here to help you or your loved one take the next steps towards an improved mental well-being.
When financial stress affects teen mental health, it can show up in a variety of different ways. Signs that family money problems are affecting your teenager can include:
If you notice any of these signs or you’re worried about how the family finances are affecting your children, it might be time to seek professional support.
Parents can help by discussing money honestly in ways that suit their teen’s age and understanding. Explain what is changing and what steps you are taking, while making clear that solving the family’s financial problems is an adult responsibility.
Give your teen space to ask questions and share worries without judgment. They may feel guilty about needing clothes, school supplies, or money for activities, even if you have never suggested they should.
Reassure them that their needs matter. Support from friends, relatives, and school counselors can also help families cope with financial strain and give teens somewhere to discuss concerns.[3]
Counseling and psychotherapy can feel out of reach for families that are stressed about money. However, many U.S. states have charitable and low-cost counseling services available. Some may even have particular services for people on a low income. So, it’s always worth exploring those options for teen anxiety about money.
If you can find low-cost services or access others within your means, there is a wide range of therapies that can treat financial stress and teen mental health. You might come across the following:
Mission Prep provides treatment for teens experiencing various mental health conditions. Mental Health support is a phone call away – call 866-901-4047 to learn about your treatment options.
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If you’re worried about your teen’s mental health as a result of financial hardship, there is support available. Understandably, you may be limited due to financial reasons, but Mission Prep Teen Treatment offers a wide range of therapeutic support and tailored treatment programs for adolescents.
Whether your teen could benefit from residential treatment at one of our locations or something more flexible, like an outpatient mental health program delivered virtually, our team can help.
Mission Prep Teen Treatment accepts insurance and is in-network with most major providers. We are happy to help you check your insurance coverage for mental health care.
Learn more about our admissions process online or call 866-901-4047 to speak with a caring member of our team who can answer any questions you might have. Reach out for a free, no-obligation conversation.
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