Money and mental health
Lots of families are feeling the impact of rising costs and financial pressure. Money worries can affect how you feel day to day, and children and young people may also pick up on these concerns.
You might be feeling anxious about bills, struggling to make ends meet, or unsure how things will work out for you financially. Your child might feel worried, left out, or affected by changes at home, even if you haven’t spoken about money directly. These experiences are common when finances are under strain.
This guide is here to support you and your child around these issues. It includes advice on coping with money worries, talking about what’s going on, and finding ways to feel more secure. You’ll also find information about practical and financial support that may be available to your family.
Understanding the link between money and mental health
Money worries can have a real impact on mental health.
Financial pressure — including poverty and social inequality — can increase the risk of mental health difficulties. Worrying about money, going without things you need, or feeling different from others can all affect how a young person feels.
This relationship can also work the other way, as this research from the Mental Health Foundation shows. When a young person is struggling with their mental health, it can be harder to manage everyday tasks, including things like budgeting, studying or working. This can then affect finances.
Because of this, money and mental health can sometimes become linked in a cycle that feels difficult to break. The following sections focus on practical ways to support your child and reduce the impact of money worries on your family’s wellbeing.
Not everyone will experience the same things, but some common impacts of money worries on your mental health might include:
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feeling anxious or panicked, especially when thinking about bills, debt or financial uncertainty
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finding it harder to sleep or switch off from worry
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feeling left out or isolated if you cannot afford the same things as others
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low mood or depression, particularly when basic needs or support feel harder to access
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feeling constantly stressed or overwhelmed
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feelings such as fear, shame or guilt, including worries about spending money
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lower confidence or self-esteem
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feelings of shame and lack of confidence around money
When you are struggling with your mental health, it can make it harder to manage finances.
You might:
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find it difficult to stay organised, plan ahead or manage their money
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feel overwhelmed by tasks like budgeting, paying for things or making financial decisions
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struggle with motivation, which can affect school, work, or opportunities to earn money
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act impulsively, including spending money without thinking things through
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need extra support, which can sometimes lead to additional costs.
Mental health difficulties can affect the whole family’s financial situation. For example, parents or carers may need to reduce working hours or stop working altogether to provide care for others or to look after their own mental health, or may need to pay for additional support.
Therapy is not very accessible and there are huge waiting lists. Private arrangements are costly… we really struggled to meet those costs.
Stress bucket activity
Money worries are a common source of anxiety. When combined with feelings of stress caused by other experiences, it can become overwhelming. This short video by Braive shows how this can happen and gives some suggestions to help manage stress.
Talking to your child about money
It’s natural to want to protect your young person from money worries. But not talking about what’s going on can sometimes make things feel more uncertain or overwhelming.
Children and young people often pick up on changes at home, even if you try to hide it. Having open, age-appropriate conversations can help them feel more reassured and supported.
Even if you don’t feel you have all the answers, it’s still better to say something than nothing. Read our tips for talking to your child about money and the financial situation.
Let your child know they can ask questions or talk to you at any time. Even if you don’t have all the answers, being available helps them feel supported.
They may feel embarrassed, awkward or resentful about having less money than peers. Tell them these feelings are understandable and that you’re there to listen.
They may notice differences between their life and their friends’ or what they see online. You could talk about how social media doesn’t always reflect real life.
Use this as an opportunity to discuss values, like spending time together, being creative, or making the most of what you have.
Give your child space to share what they are thinking about. Talking things through can make worries feel less overwhelming.
Help your child think about small, practical things your family can do. This can reduce feelings of helplessness and make the situation feel more manageable.
Helping your child learn about money
Helping your child understand money can make the situation feel less confusing or overwhelming. It can also help them see that financial pressures are not their fault, and not something they are expected to fix.
Conversations about money should be simple and reflect your child’s age and your family’s situation. You don’t need to explain everything at once — using everyday moments, like shopping or paying for things, can make it easier to talk about why certain choices are being made.
For example, teenagers and older young people could relate to the price of something they value, like a phone contract or piece of tech. A younger child might understand that they can buy less with their pocket money.
It can also help to talk about the difference between things we need and things we might like to have. Being clear about what is and isn’t possible can reduce confusion or repeated questions and help your child adjust to changes more gradually.
Where it feels appropriate, you could involve your child in small decisions, like choosing low-cost activities or helping to plan meals. This can help them feel more in control and less worried.
You could also use free resources aimed specifically at young children, such as BBC Newsround or the Beano workbooks on financial literacy, created with the Bank of England. If your child is older, you could watch or read the news together and talk about what you’ve learned.
What helps when money worries are affecting the family
When money worries are ongoing, there isn’t always a quick solution. But there are things that can help reduce stress and make the situation feel more manageable for you and your family.
One of the most important things is not dealing with everything alone. Talking to someone you trust, such as a partner, friend, family member or another parent, can help you feel less isolated and more able to think clearly about what to do next.
Support from family has been incredibly important, both practically and emotionally.
It can also help to break things down into smaller, more manageable steps. When everything feels uncertain, focusing on what needs to be done today or this week can make things feel less overwhelming. For example, you could write down your main outgoings, prioritise essential costs, or deal with one task at a time.
School-related costs can be another source of pressure, including things like uniforms, trips or social activities. If you’re finding these difficult to manage, it may help to speak to your child’s school. Many schools can offer support, flexibility or advice, and may be able to help your child feel included without adding extra pressure.
Childline have a guide to making a budget and organisations such as Citizen’s Advice have online budget tools.
Involving your child in small, practical steps
Focusing on practical steps you can take together can help money problems feel more manageable. It can also help your child feel more involved and less worried.
Where it feels appropriate, you could involve your child in small decisions or changes. This might include:
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Switching appliances off when not needed.
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Wearing an extra layer instead of turning the heating up.
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Cancelling subscriptions you no longer use.
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Being creative with leftovers.
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Choosing cheaper brands when shopping.
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Repairing or upcycling old items instead of replacing them.
Taking part in these changes can help children feel a sense of control, rather than feeling worried about something they don’t understand.
You could also plan free family treats appropriate for your child’s age, so that the changes feel positive as well as cost-saving. You could try:
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a family movie night or games tournament
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a visit to a free museum
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choosing books at the library
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making a homemade “fakeaway” or trying a new budget-friendly meal such as these from BBC Food.
Where to find practical support
Asking for help when you are struggling can feel difficult. But it is a sign of strength. As well as helping you find practical help, reaching out can reduce any feelings of hopelessness or isolation that you or your child may be experiencing.
Other support
For support and advice on specific needs that you may be struggling with financially, the following organisations may be able to help.
It’s a good idea to start with a written budget so you have a clear picture of your finances. You can also use this in conversations with organisations that may be able to help or benefits assessments.
Citizen’s Advice has a budgeting tool and benefits calculator you can use, as well as information about food banks, difficulties with rent, and debts. Turn2us also has a benefits calculator and information about grants you may be eligible for and other sources of support.
Your local authority website should have information about emergency grants and organisations offering support in your area. The government’s Help for Households site also lists information on benefits and support with costs such as childcare and transport.
If you are in debt, it’s best to ask for help rather than let bills and interest mount up. Banks and credit card companies can usually help to draw up repayment arrangements if they know you are struggling. The charity National Debtline has advice on how to do this as well as template letters you can use.
Find your local food bank through the Trussell Trust. See your local authority website for information about free school meals.
Ofgem’s guide to support sets out how your energy supplier can help if you’re struggling with gas and electricity bills. The Fuel Bank Foundation also has practical advice and offers emergency financial support.
You may be eligible for a grant of up to £200 to help with the cost of your child’s school uniform. Money Saving Expert has information.
End Furniture Poverty has a guide to finding furniture and white goods if you’re on a low-income.
Shelter offers advice and support with housing issues and homelessness, including one-to-one local support, online support, an emergency helpline and free legal support.
If you care for someone with a mental or other health condition or a disability, you may be eligible for financial support towards extra costs. Carers UK has information.
Useful helplines and websites
While we take care to ensure that the organisations we signpost to provide high quality information and advice, we cannot take responsibility for any specific pieces of advice they may offer. We encourage parents and carers to always explore the website of a linked service or organisation to understand who they are and what support they offer before engaging with them.
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YoungMinds Parents Helpline
We support parents and carers who are concerned about their child or young person's mental health. We can provide detailed information and advice, emotional support and signposting.
You can speak to us over the phone or chat to us online. When we’re closed, you can still leave us a message and we'll get back to you in 3-5 working days.
- Opening times:
- 9.30am-4pm on Mondays, Thursdays and Fridays; 9.30am-6pm on Tuesdays and Wednesdays
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Citizens Advice
Provides information and advice on issues such as divorce and separation, benefits, work, universal credit, debt, housing and immigration.
Webchat service available.
If you're experiencing problems with debt, you can call their debt helpline or use their debt webchat service.
- Opening times:
- 9am - 5pm, Monday - Friday
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Turn2us
Helps people in financial need gain access to welfare benefits, charitable grants and other help – online, by phone or face-to-face through partner organisations.
- Opening times:
- Monday - Friday, 9am-5pm
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Family Lives
Emotional support, information, advice and guidance on any aspect of parenting and family life.
- Opening times:
- 9am - 9pm, Monday to Friday; 10am - 3pm at weekends
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National Debtline
Information and advice on managing bills and debt, including debt management plans and council tax arrears. The charity offers template letters to use when contacting lenders and suppliers as well as a free helpline and webchat service.
0808 808 4000
- Opening times:
- Monday to Friday 9am - 8pm; Saturday 9:30am - 1pm
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Shelter
Provides information and advice about housing and homelessness.
Webchat service available 9am - 5pm on weekdays.
Access local support and advice.
- Opening times:
- 8am - 8pm on weekdays, 9am - 5pm on weekends
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