In today’s fast-paced world, where the cost of living seems to be perpetually on the rise and the pressure to keep up with societal expectations is ever-present, it’s no wonder that many Australians are feeling the pinch. But what may come as a surprise is that financial insecurity and feeling guilty for spending money, more than any other factor, is taking a significant toll on the mental well-being of Australians.
Recent research has highlighted that worries about money are not just a practical concern but a profound psychological one, ranking higher than stress and anxiety in a major survey conducted by News Corp Australia’s Growth Distillery with Medibank. This revelation comes at a time when News Corp, in partnership with Medibank, has launched the Can We Talk? campaign, aiming to open up conversations about mental health and advocate for increased government support.
The survey found that a staggering 48 per cent of respondents cited money and financial issues as their most significant stress factor, with high levels of stress (46 per cent) and anxiety (41 per cent) following closely behind. These findings underscore the deep-seated nature of financial anxiety and its pervasive impact on our daily lives.
Take the story of Megan ‘Megs’ Freeman, for example. The birth of her son 10 years ago marked a significant life transition, not only in terms of becoming a parent but also in her relationship with money. As she stepped away from earning an income to care for her child, she found herself grappling with a sense of lost independence and autonomy. Despite having a supportive partner, the psychological burden of feeling financially dependent and the guilt associated with spending money that she felt wasn’t hers to spend began to weigh heavily on her.
Megs’ experience is far from unique. Many Australians, particularly millennials in their early 40s like her, are struggling with the financial strain of housing and childcare costs while trying to balance burgeoning careers with family life. The stress of these financial pressures can lead to a sense of being trapped in a cycle of living pay cheque to pay cheque, unable to move forward.
Recognising the need for help, Megs turned to financial coach Suzanne Alexander, who emphasises the importance of understanding both the numbers and one’s emotional relationship with money. Alexander points out that our financial beliefs are often formed early in life and can unconsciously influence our decisions well into adulthood. She works with clients to help them gain clarity on their financial position, track expenses, align spending with personal values, and reframe negative money beliefs.
For those feeling overwhelmed by their financial situation, Alexander suggests that the first steps to regaining control involve practical measures such as tracking expenses and aligning spending with personal values. She also explores with clients whether cutting back expenses or finding ways to increase income—or a combination of both—is the best path forward.
Moreover, Alexander is a strong advocate for early financial literacy, encouraging parents to involve their children in everyday financial decisions and to teach them the value of financial independence from a young age.
Through hard work and a shift in mindset, Megs has made significant progress. She has become more confident and capable as an earner and is now reaping the rewards in her design consultancy practice, Creative in My Pocket. Her journey reflects a broader narrative among Australians who are finding ways to navigate financial insecurity and improve their mental well-being.
The Can We Talk? campaign serves as a reminder that mental health is inextricably linked to various aspects of our lives, including our financial health. By addressing the root causes of financial anxiety and fostering open discussions about mental well-being, we can work towards a future where Australians feel more secure and less stressed about their finances.
What are your thoughts on the impact of financial stress on mental well-being? Have you encountered effective strategies for managing financial anxiety? We’d love to hear your insights and experiences—feel free to share them in the comments below and join the conversation.
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