The link between money and mental health must not be overlooked

The Money and Mental Health Institute estimates that there are presently some three million people in the UK who suffer from mental health disorders while also struggling to make ends meet. 86% of respondents to a survey by the Institute said that their financial problems had worsened their mental health.

British teenagers might not be struggling to cover mortgage repayments, but this does not mean that they aren’t under financial pressures of their own. As two women in our mid-twenties, we both know just how much pressure there is on teenagers to buy into the latest trends or risk feeling inadequate and left out. Given how social media has grown and changed since our teenage years, we’re certain that this pressure has increased manifold.

The UK’s financial literacy problem highlights the very real risk that young people face when it comes to mental health issues brought on by financial trouble. With rising rents, student debt and worsening consumerist pressures, more and more young people are finding themselves woefully unequipped to deal with the costs of living.

Just 40% of UK schools teach personal finance, despite it being introduced to the curriculum way back in 2014. According to Young Money, teachers are often hesitant to teach a topic that they don’t feel totally comfortable with themselves. Furthermore, given that UK household debt is soaring and financial products are becoming ever more complex, parents often share these feelings.

The results of this are clear: 24% of young Brits are in chronic debt and have to borrow each month, according to the BBC. Perhaps surprisingly, this is a problem that transcends social divides: middle-class kids, who have never had to worry about cash, are often most at-risk of getting into “problem debt”.

The link between personal finance and mental health is a multifaceted problem that needs immense buy-in from numerous organisations if a solution is to be found. At Nebula Learning, we believe that educating teenagers about money is one step towards realising that goal.

Crucially, understanding finance is about much more than simply knowing the difference between credit and debit cards. Above all, it’s about understanding that having your finances in order gives you immense control over your life. It’s that feeling of being in control — being in charge of your own life — that mental illness takes away from you.

At the same time, being in financial trouble inevitably can lead to similar feelings of powerlessness. Constantly worrying about how you’re going to pay bills or, if you’re a teenager, how you’re going to afford the latest trends to keep up with friends and social media influencers is enormously damaging for one’s well-being. It’s no wonder, then, that there is such a strong link between money and mental health.

Mental health funding — particularly for teenagers and young people — is worryingly low at the moment and the pressure on teenagers to look good and dress well are only increasing. Given the precarious state of financial education, teenagers therefore risk being exposed to a double whammy of financial illiteracy and a lack of mental health support.

It’s high time that both of these issues gained the attention they deserve.