Marriage and family psychologist Megan McCoy discusses the lasting impact of financial trauma on mental health and relationships. The podcast explores coping strategies, redefining money mindset, navigating financial infidelity, managing debt, and seeking guidance to overcome financial trauma.
Financial trauma can lead to negative self-talk and self-doubt affecting financial decisions.
Financial stress is a top stressor for many individuals, impacting outlook on finances.
Deep dives
Recognizing the Impact of Financial Trauma on Self-Perception
Experiencing financial trauma, like losing money due to a mistake, can lead to negative self-talk and self-doubt that shape one's behavior and financial decisions. These self-critical conversations can become deeply ingrained, affecting one's relationship with money over time, even causing a ripple effect of further negative behaviors and self-blame.
Understanding the Prevalence and Effects of Financial Trauma
Financial trauma, whether from major events like job loss during a financial crisis or smaller incidents such as familial money struggles, can deeply impact individuals and their outlook on finances. Studies show that financial stress ranks as a top stressor for many individuals, regardless of financial status, highlighting the pervasive nature of financial anxiety.
Coping Strategies and Long-Term Effects of Financial Trauma
Dealing with financial trauma often requires separating financial decisions from one's self-worth and seeking support to navigate the emotional toll. Strategies like goal setting, bucketing finances, and managing worries through designated 'worry hours' can help individuals tackle debt and build financial literacy. Additionally, activities like celebrating small financial wins can lead to a sense of accomplishment and prolonged happiness.
Guest-hosted by Julia Carpenter: Losing your job. Being evicted. Hearing your parents fight about money. These can all be forms of financial trauma. Megan McCoy, a marriage and family psychologist specializing in financial therapy, explains how these traumas can have a long-standing effect on your relationship with money and how to break the cycle.
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