Money and the mind: How our relationship with wealth shapes our mental health

Money—just the thought of it can trigger stress, anxiety, or even a deep-seated fear. Our relationship with money is not just about numbers and bank balances; it’s woven into our upbringing, our environment, and even our identity.

How we view money can influence our self-worth, our stress levels, and our ability to thrive.

Many of us learn about money at an early age. If you grew up in a low-income household, you might have experienced first-hand the reality of scarcity.

When resources are limited, every shilling counts, and financial stability becomes a lifeline.

This experience can instil a mind-set where material things and security are prioritised above all else, a mind-set that, while practical, may also fuel anxiety about every expense or unexpected cost.

On the other hand, growing up in a high-income household might lead to an abundance mind-set, a belief that there is plenty to go around, which can reduce financial anxiety.

However, even an abundance mind-set isn’t without its pitfalls. It can sometimes lead to complacency or an underappreciation for hard work, leaving a person unprepared for real-life challenges.

In both cases, our mental health is affected by the way we internalise our financial reality.

The psychological underpinnings of money mind-set

Our beliefs about money are deeply rooted in psychology. For instance, the concept of a “scarcity mind-set” suggests that when we perceive resources as limited, our brain naturally becomes more focused on survival.

This heightened focus can cause chronic stress, where the fear of running out drives every decision. Over time, this stress can lead to anxiety and depression, affecting not just our bank accounts but our overall mental well-being.

Conversely, an “abundance mind-set” is associated with the belief that there is enough to go around. This outlook can reduce stress and increase resilience, as it allows for a more relaxed approach to financial challenges.

However, if not balanced with practicality, an abundance mind-set might lead to overspending or poor financial planning. Both extremes, scarcity and overabundance can create psychological strain if they are not managed with self-awareness.

Cultural context: Money in Tanzania

In Tanzania, money carries additional layers of meaning. Cultural values emphasise community, family support, and mutual aid.

For many young people, the pressure to succeed financially is not only personal but also communal.

Expectations from family members, whether to contribute to household expenses or to help lift the entire family out of poverty can be overwhelming.

For instance, a young person might feel compelled to secure a high-paying job not just for individual success but to honour family responsibilities.

This can lead to an internal conflict where the desire for personal growth clashes with the weight of familial expectations.

When the pressure mounts, the mind can become exhausted, and financial decisions are often made out of fear rather than thoughtful planning.

Building a healthy relationship with money

So, how can one create a healthier relationship with money that supports mental well-being? Here are some strategies:

1. Recognise your money story:

Take time to reflect on how your upbringing and environment have shaped your beliefs about money.

Are you operating from a place of fear and scarcity, or do you feel a sense of abundance?

Understanding your money story is the first step toward making conscious change

2. Practice mindfulness around spending:

Instead of letting stress drive your financial decisions, try to stay present.

Mindfulness can help you pause and assess whether a purchase is driven by need or by anxiety.

It’s about building awareness around the triggers that lead to impulsive spending.

3. Challenge negative self-talk:

When financial stress creeps in, notice the language you use with yourself. Replace thoughts like “I’ll never have enough” with “I’m doing the best I can.”

Over time, this can help shift your mind-set from one of scarcity to one of growth and resilience.

4. Set realistic goals:

Rather than chasing an elusive idea of financial perfection, set achievable, incremental goals.

This could mean building an emergency fund, tracking your spending for a month, or simply learning more about budgeting.

Celebrating small wins reinforces a positive relationship with money.

5. Seek balance between work and rest:

Financial stress often leads to overworking, which can further strain mental health.

It’s essential to set boundaries—know when to push forward and when to step back and recharge.

6. Engage in open conversations:

Discuss money matters with trusted friends or mentors. In a culture where financial topics are sometimes seen as taboo, breaking the silence can help normalise challenges and reduce anxiety.

Sharing experiences can provide new insights and coping strategies.

Our relationship with money is complex and deeply personal. It reflects our past, shapes our present, and influences our future.

By understanding and reshaping our money mind-set, we can alleviate some of the mental fatigue that comes with financial stress.

In societies, where community values and family expectations add another layer of complexity, nurturing a balanced view of money is key to overall well-being.

Haika Gerson is a writer and psychology student at the University of Derby, passionate about human behaviour and mental well-being.