Money is a loaded topic. It’s the elephant in the room at family dinners, the whispered concern behind closed doors, and sometimes, the source of those late-night Google searches about scholarships, therapy costs, or ways to trim the budget. If you’re a parent, you already know that financial stress impacts your mental health—but have you considered how it’s affecting your child’s mental health?
Let’s talk about why money stress is such a big deal and what you can do to help your child navigate it—without losing your own sanity in the process.
The Hidden Weight of Financial Stress on Young Adults
Financial stress doesn’t just mean not having enough money. It means the constant weight of feeling like you don’t have enough, worrying about the future, and managing expectations. Try as we might to spare them, when parents are stressed, the kids usually pick up on it.
Anxiety & Depression Increase
When money is tight, so is emotional bandwidth. Research consistently shows that financial insecurity is linked to increased anxiety and depression. If you’ve got a perceptive kid, they’ve probably picked up on your anxiety around money and may have even internalized it. They may carry guilt or pressure to be "successful" as quickly as possible—sometimes at the cost of their mental well-being.
Substance Use Becomes a Coping Mechanism
Stress of any kind, but especially monetary stress, can push young people into unhealthy coping mechanisms. Alcohol, drugs, and other compulsive behaviors offer temporary escapes from overwhelming anxiety. If your child is predisposed to addiction or already in recovery, unmanaged financial stress can be a serious trigger for relapse.
Self-Worth Takes a Hit
Our culture equates money with success. When your kid feels like they don’t measure up financially, it can have a real impact on their confidence and self-image. Maybe they have peers who don’t have to work while they’re in college or have a different lifestyle. Social media only amplifies this, making every financial gap seem like a chasm.
Unhealthy Family Dynamics Develop
Arguments about money can create tension, resentment, and even emotional distance. If your child feels like they are a burden or responsible for family financial problems, they might withdraw or act out in harmful ways.
Avoidance & Denial Replace Action
Young adults who feel overwhelmed by financial worries might start avoiding the topic altogether. They might ignore student loan bills, refuse to talk about career plans, or procrastinate on making important life decisions. This kind of avoidance can lead to deeper feelings of failure and hopelessness.
What Can Parents Do?
Talk About Money Openly & Honestly
If you think avoiding conversations around money is protecting your child, think again. They know what’s going on.
Instead of secrecy, try honesty. Share your experiences with financial ups and downs. Normalize the fact that money challenges are a part of life, not a personal failure.
Teach Healthy Coping Skills
Instead of letting financial stress turn into an emotional crisis, encourage healthy coping mechanisms like exercise, mindfulness, or therapy. If your child is in treatment for mental health or substance use, ensure financial stress is part of the conversation with their providers.
Model Financial Resilience
Be the example. How you handle financial stress will teach your child how to handle it. Show them that while financial difficulties can be tough, they’re not insurmountable. Talk through solutions together, whether that means budgeting, seeking financial aid, or adjusting expectations. Encourage financial literacy.
Encourage Small, Manageable Steps
If your child feels paralyzed by money stress, help them focus on small wins. Creating a budget, applying for one scholarship, or even setting up a savings account can provide a sense of control and progress.
The Bottom Line
Money stress isn’t just an adult problem. If your child is struggling with mental health and financial stress is making things worse, it might be time to consider professional help. Residential dual-diagnosis treatment can provide the structure and support they need to heal, grow, and face their future with confidence.
Because in the end, financial stress doesn’t have to define them. And it definitely doesn’t have to break them.