Frich Insights: Money & Mental Health
Last week we featured a week of questions around mental health and money. When we started Frich, one of our underlying motivators was our belief that money affects everything - it affects our risk tolerance, our friend circles and, as we'll discuss today, our mental wellbeing. Money is a huge cause of anxiety. In a 2023 Ernst & Young study, they reported that “financial worry is a top driver of anxiety among Gen Z”. So let's dive into it & remember - you are not alone.
Half of our users responded that their self-esteem is currently affected by their income & 17% said that they have experiences this in the past.
We all know that access to affordable mental health support is an issue in the US but we do believe that even just knowing that you are not alone can really help. We also encourage you to have open conversations with a trusted friend, a family member or a mental health professional.
27% said that money issues make them feel anxious "often, if not always". And not a single person answered that they've never felt anxious due to money issues.
There are certain steps you can take to ease the anxiety that money can cause. Note that we're not mental health professionals, but having an emergency buffer for unexpected situations can really help to ease the mind. Here's how to build your emergency fund:
Open a High Yield Savings Account (check some options here). A High Yield Savings Account (HYSA) is an online savings account that pays you higher interest rate just for saving money - they're basically rewarding you for having savings! It's also free to open this type of account.
Save the first $500-$1000 to build up momentum.
Save for an emergency fund. Knowing that you have money set aside for an emergency will give you some mental peace. Check out this free Emergency Fund Calculator from Mrs. Dow Jones (aka Haley Sacks) to know how much you should save up.
38% of you said that you're currently delaying seeking mental health help because you can't afford it and 25% said that it has been an issue in the past.
First of all, we want to applaud you for taking the first step and considering to seek mental health support! We know it's still a topic clouded by stigma so go you for being so brave!!!
There has been a lot of innovation in the industry and there are platforms making it easier to match you with a mental health professional (MyWellbeing, Better Help) but if you are in a crisis, there are free resources too. Please check them out here.
Also, just know that if your mental health is being affected specifically by money, you can search out for a Money Coach who is specifically trained to help you deal with money anxieties!
Good luck! You can do it☺️