How Your Money Habits Impact Your Mental Health

When we talk about wellness, conversations often center around nutrition, movement, relationships, or sleep. But there’s another key area that deserves attention—financial wellbeing. It’s a topic that affects nearly every domain of life, and more importantly, your sense of peace, purpose and vitality. At Modern Minds, we believe true wellness is about aligning with what matters most, and yes, that includes your relationship with money.

“Financial health isn’t just about having a certain number in your bank account,” says Tina Kaminski, Director of Clinical Education at Modern Minds. “It’s about how you relate to your finances. Are your financial behaviors in line with your values? Do you feel empowered—or trapped?”

According to research from Columbia University Irving Medical Center, people with significant debt are at a much higher risk for depression and anxiety. The reason? Two powerful emotional states often emerge with indebtedness: hopelessness and shame. These can be isolating and overwhelming, making it difficult to see a way forward.

“Many people carry a heavy emotional load when it comes to money—feelings like guilt, fear, or embarrassment,” Kaminski explains. “Rather than judging those emotions, we can use them as a starting point for reflection. What are they trying to tell you about what matters most?”

Improving financial wellbeing isn’t just about crunching numbers—it’s about creating a life that feels more free, sustainable and aligned with who you want to be.

Here are some ways to begin shifting your relationship with money:

1. Practice Awareness

Take an honest, nonjudgmental look at your financial life. What’s working? What’s not? What emotions come up when you think about money?

2. Name What Matters

What does financial stability mean to you? Maybe it’s providing for your family, feeling less stress, or having the freedom to travel. Clarifying what’s important helps you make choices that support your overall wellbeing.

3. Make Room for Discomfort

Money can stir up a lot—fear, shame, comparison. Instead of avoiding these feelings, try to acknowledge them gently. Noticing what’s showing up creates space for change.

4. Take Small, Intentional Steps

Set realistic goals that feel meaningful. That might look like reviewing your budget weekly, starting a savings habit, or asking for help when you need it.

“Wellness isn’t just about green smoothies and gym sessions,” says Kaminski. . “It’s about building a life that feels whole and sustainable. Financial wellbeing is a key part of that picture.”

And the research backs it up: people with more financial stability are more likely to afford better nutrition, engage in regular exercise, and have more free time, all of which contribute to slower aging and improved mental health.

So, whether you’re exploring your own path to wellness or simply taking stock of where you are—don’t overlook the money piece. Not because it’s all about dollars and cents—but because your financial life deeply impacts your sense of freedom, possibility and vitality.