Financial
Trauma
Financial wounds may hurt, but they also teach us that healing and thriving are not just possibilities – they’re promises we make to ourselves.
What Is Financial Trauma?
Past experiences with money can shape how we view and receive it moving forward. Having traumatic experiences with money, such as job loss, repossessions, poverty, money loss, business loss, and other events, can rest in our bodies and minds, creating repeated events and the inability for financial recovery.
Trauma Of Money
Chantel Chapman, co-founder of the Trauma of Money Method and founder of What The Finances, takes a trauma-informed approach to financial education. She believes it’s crucial to look at financial trauma on both an individual and collective level.
In general, trauma is most widely understood as the kind caused by a singular traumatic event, such as a natural disaster, assault, or car crash. The same can be applied to individual trauma related to money.
"A couple of examples of this would be living in poverty for more than a few months, or let's say you invested your entire retirement savings in some stock deal, and you lost it all, or maybe there was a divorce, and you ran into some challenges with your finances with your partner."
Collective Or Generational Trauma
We can also explore financial trauma from a wider lens. As Chapman explains, the trauma around money can also be generational, intergenerational, relational, societal, or systemic. These larger-scale forms of financial trauma might look like the scarcity mindset passed down from your parents or the societal pressure to over-consume. Financial trauma, no matter the source, can have a debilitating or destructive impact on the way we interact with money, so it’s important to recognize the signs and work to understand our behaviors on a deeper level.
Causes Of Financial Trauma
Financial trauma can stem from various sources. Sometimes, it’s those unexpected life events like medical emergencies, job instability, or a significant market crash. Other times, it could be a result of your upbringing – if you were raised in an environment where money was a constant source of tension, that can leave a lasting impact, too. The pressure to meet societal expectations, dealing with student loans, or simply the weight of living in an expensive world can also contribute. Each person’s journey is unique, but remember, there’s no shame in seeking help to navigate these challenges.
Then there’s that nagging scarcity mindset that takes root in your thoughts. It’s like a lens that tints everything you see, making you believe there’s never enough to go around. You’re trapped in a cycle of rumination, replaying financial missteps, and you start to avoid certain situations, places, or even people that trigger these thoughts.
A History Of Poverty
Intergenerational Trauma
"Emotional DNA" Of Family Members
Increasing Debt
Financial Losses
Financial Discrimination
Lack of Resources
Symptoms Of Financial Trauma
Let’s talk about how financial trauma might appear in your life. Do you find yourself avoiding conversations about money? Maybe you’re experiencing sleepless nights, racing thoughts, or anxiety when thinking about your finances. Some folks start overspending to cope, while others become overly frugal. Need help to set financial goals or feeling a sense of dread when bills arrive? These could all be signs of financial trauma. Recognizing these symptoms is essential, as they can impact your relationships, career, and overall well-being.
Hypervigilance & Being On Edge
Avoidance Behaviors
Sleep Disturbances
Money Anxiety
Excessive Second Guessing
Analysis Paralysis
Physical Symptoms
Appetite Disorders
How Awkward Money Can Help
Financial Confidence
Healthy Money Mindset
Identify Meaningful Goals
Combat Decision Fatigue
Let's Work Together
Healing from financial trauma isn’t just about numbers; it’s about rediscovering your sense of agency, peace, and possibility. Our coaching services are here to be your compass, helping you navigate through the darkness toward a brighter financial future.
- Personal coaching that tailors a plan specifically for you and maps out a path towards healing.
- Equipping you with specific tools and strategies to stop spinning in financial chaos. You will rewire your money mindset, fostering a healthy relationship with your finances.
- Join a community where you can share stories, learn from others' journeys, and find solace in the collective wisdom.
Awkward Money Services
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