Money and Mental Health 

As an ethical lender, we at Lendology, understand the link between mental and financial health, and the impact they can have on each other. That is why we believe it is important for us to share this article, from Paul Fox, the Head of the Government’s Money & Pensions Service for SW England, on Money and Mental Health.  

The below information does not constitute financial advice and should not be considered as such. It is intended to support individuals by signposting them to relevant services that may be able to support them.  

Paul Fox – Regional Manager SW 

Money and Pensions Service 

Money and Mental Health 

Living with a mental health condition can make it more challenging to engage with and manage your finances, such as payments to banks and credit cards, creditors and utility providers. With 1 in 4 of the UK population experiencing a mental health concern annually, we need to talk about this. Nearly 50% of people in problem debt experience a mental health concern, and people in problem debt are also three times more likely to think about suicide. The many different symptoms of mental health problems can make choosing, using, and paying for essential financial services harder. 

The cycle of money and mental health problems 

(Money and Mental Health Policy Institute. 2019)               (Mind. 2024) 

Many people with mental health problems often rely on friends or family for help with managing their money, particularly when unwell. Existing tools for sharing decision making do not always work effectively and can create a barrier for some people with mental health problems. This increases the risk of using alternative and insecure means of third party support, such as sharing passwords and PINs. The symptoms of certain mental health concerns can include reduced or a complete lack of impulse control, which could make over-spending and getting into financial difficulty more likely. 

Feeling depressed, stressed, anxious or experiencing mania can make it difficult to manage money. For example: 

• You might find it harder to make budgeting and spending decisions. 

• To make yourself feel better, you might spend money you don’t have on things for other people or that you don’t need and then regret it later. 

• You might feel anxious or stressed about talking on the phone, going to the bank or opening your bills. 

• The symptoms of a mental illness might cause you to behave impulsively like spending a lot of money all in one go. (MaPS. 2024) and (Mind. 2024 below) 

Understanding patterns in the way you spend your money 

The first step to understanding how your mental health affects your money management is to search for patterns in your behaviour to identify any potential habits. You may already have some insight into this and be aware that you manage your money differently depending on how your mental health is at certain times. It may also be useful to ask family members or professionals that know you well if they have any awareness. 

The steps below are proactive and practical ways of taking back control of your spending. It is a great way to see how your mood can trigger different situations, or lead you to behave differently to managing your money. To gain a further understanding of how your mental health affects the way you spend money, it may help to: 

• Keep a diary of your mood, and rate it out of 10 at multiple points in the day. 

• Make a note of any situations that are connected to money management. … 

• Each time you spend money record how you were feeling both before and after. 

• Keep this diary for a few weeks and see if you notice any patterns emerging. 

Information and Support 

We know that there is a lot of information out there about what people could do to assist their circumstances, but it may be difficult for you to know where to start. 

• The Hub of Hope (www.hubofhope.co.uk) is a directory of both national and local mental health support services 

• MoneyHelper (www.moneyhelper.org.uk) provides free, independent money guidance, online and over the telephone (0800 138 7777) 

• MoneyHelper – the Debt Advice Locator Tool lists free, independent debt advice services. 

        (Mind. 2021) 

• Citizens Advice (www.citizensadvice.org.uk) provides free advice on your rights around money, housing and legal problems. 

• Mental Health and Money Advice (www.mentalhealthandmoneyadvice.org) has guides on claiming benefits when you have a mental health problem. 

• Money and Mental Health Policy Institute (www.moneyandmentalhealth.org.uk) you can download Martin Lewis’s free guide for everyone struggling with their finances and a mental health problem. It will provide useful resources whether you’re looking for advice for yourself or for someone you care about. 

We hope Paul’s expertise and information has encouraged you to check up on your own and others mental wellbeing, and conveyed that financial well-being can be a significant factor in mental wellbeing. Hopefully you can use and share the resources within the article, to help someone take steps towards gaining control of financial health, whilst remaining considerate of mental wellbeing.