In 2025, the connection between financial health and mental well-being is clearer than ever. For women, who often face unique financial challenges, fostering financial wellness can significantly improve emotional resilience and overall quality of life. Thus, women must learn how to navigate the intertwined realms of money and mental health in order to achieve stability and peace of mind.
First, it is essential to discuss the connection between money and mental health. While money is often seen as a means to an end, it can significantly impact mental wellness, particularly as societal pressures equate financial success with happiness. Conversely, mental health can also affect financial stability.
A recent survey by the American Psychological Association reveals that 72 percent of people feel stressed about money, with 29 percent citing better job security as a potential solution to ease their financial stress. Moreover, money remains a significant source of conflict for 32 percent of Americans in their relationships, a percentage that escalates to almost 60 percent among millennials, highlighting generational differences in financial pressures.
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Financial stress is also a leading contributor to anxiety and depression. Research shows that women are disproportionately affected by financial insecurity due to the gender pay gap, caregiving responsibilities, and systemic inequities. The weight of unpaid labor and societal expectations often compounds these stressors, making financial health a critical component of emotional well-being.
Low income, debt and job loss can create financial stress as well, leading to psychological distress, anxiety and depression. Studies by the National Institute of Mental Health demonstrate that the risk for depression is greater for low-income households, particularly those making less than $14,500 per year. Moreover, financial stress can impact physical health, contributing to high blood pressure, heart disease, and sleep struggles — with more than half of financially stressed people living paycheck to paycheck.
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Conversely, mental health challenges can hinder financial decision-making. Anxiety, for instance, may lead to avoidance of budgeting, while depression can cause overspending in attempts to self-soothe. Impulsiveness and overspending are also known symptoms of bipolar disorder and ADHD. Recognizing this cyclical relationship is the first step toward breaking the pattern.
Now that we recognize the connection between financial well-being and mental health, implementing the below strategies is essential to addressing and overcoming this challenge.
Build financial literacy
Knowledge is power. Understanding the basics of budgeting, investing and debt management equips women to take control of their finances. Resources like online courses, podcasts and community workshops can demystify complex financial concepts.
Set realistic goals
Define what financial wellness means personally. Whether it’s building an emergency fund, paying off debt or saving for retirement, setting achievable milestones provides a sense of accomplishment and direction.
Leverage technology
Apps like Mint, YNAB (You Need A Budget), and Ellevest — designed specifically for women — can simplify tracking expenses, managing investments, and planning for the future.
Seek support
Financial wellness doesn’t have to be a solo journey. Joining support groups, attending financial counseling or seeking mentorship can provide encouragement and accountability.
Addressing mental health is crucial. Therapy, mindfulness practices and stress management techniques can help alleviate the psychological burdens of financial stress. Beyond that, progress must be made to break down societal barriers. Women of color, LGBTQ+ individuals and single mothers often face compounded financial and mental health challenges. Policymakers and organizations must continue advocating for systemic changes, such as pay equity, affordable childcare, and accessible mental health care. Furthermore, employers have a role to play. For instance, companies like Starbucks and Microsoft have implemented robust mental health programs, including counseling services and flexible work arrangements, which have shown measurable improvements in employee well-being. This is a smart business decision because 50 percent of employees report being less productive at work due to financial stress, which directly impacts productivity and the bottom line of businesses. On an individual level, overcoming the stigma surrounding money conversations is essential. Discussing finances openly with friends, family, or partners can reduce shame and foster collective growth. Communities also play a pivotal role in supporting women’s financial wellness. Networking groups, social media communities, and grassroots organizations offer safe spaces to share experiences, learn and grow. By leaning into these networks, women can build confidence and find solidarity. The journey toward financial wellness is not linear, but with persistence and support, it is entirely attainable. In the words of financial educator Tiffany Aliche, “Clarity brings confidence, and confidence creates financial freedom.” This idea is supported by studies from the National Endowment for Financial Education. As we move further into 2025, the synergy between financial health and emotional well-being becomes increasingly relevant. Women who prioritize financial literacy, seek support and address mental health challenges are better positioned to achieve both stability and peace of mind. By fostering financial wellness, women not only enhance their own lives but also contribute to broader societal improvements, such as lower poverty rates and better access to education for future generations. Let 2025 be the year women take charge of their financial and mental health with confidence and grace!
Pattie Ehsaei
Pattie Ehsaei is a director of mergers & acquisitions financing at a major lending institution, and the author of "Never Date A Broke Dude: The Financial Freedom Playbook." She has led many teams in the financial services industry, ranging from commercial banking to investment banking, where she was managing partner and head of business development at GRID Partners. She regularly provides commentary on personal finance topics to a variety of media outlets, including Good Morning America, Huffington Post, Yahoo, BBC, and on her TikTok channel, @DuchessOfDecorum; she holds a B.A. from the University of Colorado in Boulder, and a J.D. from Loyola Law School in Chicago. Recommended
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