How Does Managing Personal Finances Affect Mental Health

Poor income management can lead to sadness, stress, anguish, and, in extreme cases, suicide. 

People in Mexico believe personal finances are intricately linked to mental health. According to the Ministry of Health, there were 3,332 suicides reported in the country. Financial education has a significant impact on this mental health problem.

Several factors like income level, age, and even gender largely determine how people manage their income, as well as the perception they have about their financial situation.

Men are the ones who stand out since at least 3 out of 10 have considered suicide as a way out of their financial problems. In addition, 27 percent are men who spend more compared to their income level, indicating financial mismanagement.

The emotional impact of personal finances

Personal finances evoke varied emotional impacts, not only on the person but also affect the entire family. having healthy finances represents one less concern, and financial independence allows you to make better decisions with money. 

More ways finances impact mental health

Among the Mexican population, 79 percent consider that their finances control their life. 89 percent feel sad if they can’t afford something. 85 percent spend a large part of the day thinking about their finances.

Less control over finances means greater guilt

Research from financial coach Coru reveals that 18 percent of Mexicans have several difficulties covering basic monthly expenses like paying for electricity, rent, gas, or water. This can have a detrimental effect on the mental health of people. Financial institutions in the country must focus on creating solutions that give people better control of their financial life. 

Almost 9 out of 10 Mexican men and women feel stressed when they think about their financial situation. 45 percent of them go shopping when they feel sad. However, when they make unnecessary expenses, the sight of their inflated bank account statements induces feelings of guilt, which can become a never-ending circle. 

Closing thoughts 

Society as a whole must carry out solid strategies to encourage financial education, particularly focused on the most susceptible population groups. This will equip them with the necessary tools to have healthy finances.

Also read: The Benefits And Perils Of Technology In Pandemic Times

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