We often talk about money in numbers: budgets, credit scores, and savings goals. But the truth is, money is emotional, too. And, for many of us, it carries a heavy past.

 

Maybe you grew up watching your parents argue over bills. You might have lost everything during a crisis. Or, maybe you've been told that you are "bad with money" so many times that you have started to believe it. These experiences can leave deep wounds that we call "financial trauma." 

 

Like any kind of trauma, financial trauma can affect how you think, feel, and behave. If you have ever avoided opening a bill or checking your bank balance, you may have financial trauma. You are not lazy, broken, or irresponsible. You are human. Financial wounds need care, not criticism!

 

What is financial trauma?

Financial trauma is the emotional pain caused by past money-related experiences that felt unsafe, overwhelming, or deeply stressful. It can come from:

• Childhood poverty or instability
• Losing a job or home
• Going through divorce, bankruptcy, or foreclosure
• Losing a large amount of money or investments
• Being financially controlled or abused
• Growing up in a household where money was a source of fear or shame

Over time, these experiences can create subconscious patterns: avoidance, guilt, impulsive spending, or hoarding. Because our culture often ties money to self-worth, financial trauma can damage our self-esteem.

 

Signs you may be carrying financial trauma

Everyone processes trauma differently, but some common signs are:

• Anxiety when thinking about or handling money
• Panic or shutdown when unexpected expenses come up
• Avoiding budgeting or opening mail related to finances
• Feeling ashamed of your income, debt, or financial choices
• A sense of hopelessness when trying to improve things

 

Financial trauma can be healed!

Here are a few steps to healing financial trauma:

1. Name it without shame

• The first step to healing is acknowledging your experiences without judgement. You are not weak for feeling the way you do. Your emotions make sense in the context of what you have lived through. Try saying, "It's okay to feel this way. I've been through a lot, and I'm allowed to take my time."

2. Create a safe space for money

• Instead of diving into spreadsheets and strict budgets, begin my making money feel less scary. You can listen to music while you balance your accounts, set a timer for 5-10 minutes of "money time" per week, or use affirming language ("I'm learning" or "I'm allowed to get better at this." Doing these actions, creates a calm nervous system response, helping you slowly rebuild trust with your money and yourself.

3. Practice financial self-compassion

• If you have made mistakes, let it remain in the past. Resist the urge to beat yourself up. Instead of "I'm so bad with money," try: "I did what I could with what I knew." You cannot punish yourself into progress, but you can support yourself into healing.

4. Start with small, empowering wins

• Healing trauma doesn't happen all at once. Start small and celebrate your wins! Every small action is a message to your brain that you are safe, growing, and can handle what comes your way.

5. Work with supportive professionals

• You don't have to do it alone. Financial counselors can help you rebuild your financial confidence, without judgement. And, if you need to do a deep dive into your emotional wounds, you may consider seeing a financial therapist. Another valuable resource is community support groups or online spaces offer encouragement from other people who may understand your situation.

 

Your financial peace is possible

At Walters Financial Wellness, I believe that true financial health includes emotional wellness. If you are ready to take steps toward healing, rebuilding, and feeling confident with money again, I'm here to walk beside you!