Financial stress and mental health struggles often feed into each other, making it harder to manage both money and emotional well-being. In this interview, Dr. Tecsia Evans explains how emotional spending, comparison, lack of support, and life transitions can create unhealthy financial habits — and shares practical steps people can take to regain stability through small, consistent changes.
Key Takeaways
- Financial stress and mental health problems reinforce each other in a “vicious cycle” that affects 1 in 5 people with problem debt.
- Recognizing your emotional spending triggers is the first step toward breaking the cycle and building a healthier financial life.
- Small, consistent actions — like creating a simple budget or protecting sleep time — can restore both financial stability and mental well-being.
An Interview with Dr. Tecsia Evans, PhD
The link between money and mental health is a heavy cycle, often leaving people feeling isolated and overwhelmed. According to the Money and Mental Health Policy Institute, one in five people with mental health problems are in problem debt—a “vicious cycle” where financial and emotional distress reinforce each other.
To better understand this connection, we spoke with Dr. Tecsia Evans, founder and CEO of Your Therapy Now, to discuss how to manage the triggers that damage our financial and psychological well-being.
Identifying the Triggers
[Q]: Dr. Evans, what are the primary triggers that can damage both our money and our mental health?
Dr. Evans: Triggers that damage our mental and financial health often stem from a lack of stability or unresolved conflict. Key factors include:
- Life Transitions: Loss in the family, relocation, a new baby, marriage, or job loss.
- Lack of Support: Not having, or not relying on, a healthy support system.
- Unmanaged Illness: Depression, anxiety, or bipolar disorder that isn’t being professionally treated.
- Neglect of Self-Care: Poor eating, lack of sleep, and unhealthy relationships.
When healthy coping skills are absent, these triggers often lead people to engage in riskier spending habits as a way to self-medicate.
Recognizing “Risky” Financial Behavior
[Q]: How do you define “risky” spending habits?
Dr. Evans: It isn’t just about spending too much. It can include avoiding financial responsibilities, choosing to be “blind” to your budget, or being so conservative due to anxiety that you cannot enjoy your resources.
[Q]: What are the common signs that a financial situation is actively harming someone’s mental health?
Dr. Evans: Rumination is a major red flag. If you spend a significant amount of time dwelling on finances without producing a viable plan, that stress fuels anxiety and depression. Another sign is “emotional spending,” which is using money to cover up an insecurity or to cope with a bad day at work.
“A viable plan reduces stress. Without one, rumination only fuels the fire of anxiety.” — Dr. Tecsia Evans
The Role of Comparison and Poverty
[Q]: We live in a world of social media. What role does comparison play here?
Dr. Evans: Comparison leads people to feel they aren’t “good enough” compared to an idolized persona. This fuels insecurity, which negatively impacts both mental wellness and financial habits. If comparison is hurting you, seek support to find the underlying cause of that insecurity.
[Q]: Does poverty change the physiological impact of this stress?
Dr. Evans: Absolutely. Poverty can induce severe stress and sadness, especially when coupled with limited coping skills and a low sense of hope. Anxiety grows where there is uncertainty.
Preserving Your Well-being
[Q]: How can someone preserve their mental health while struggling financially?
Dr. Evans: I recommend two main steps:
- Reduce Uncertainty: Use free resources or a professional to create a simple budget. Following a plan frees up mental energy.
- Protect Your Time: Even in “worst-case” scenarios, carve out time for one small wellness win, like going to bed on time, taking a 15-minute walk, or avoiding a friend who makes you feel worse about your situation.
Raising Financially Healthy Children
[Q]: What can parents—both low-income and wealthy—do to help children form a positive relationship with money?
Dr. Evans: Start early. This can be around age five. Let them observe money’s different purposes: spending, saving, giving, and investing.
- For low-income families: Have them earn quarters for chores or join you when paying bills.
- For wealthy families: It is vital to limit and regulate access to money. Without limits, children may believe that rules don’t apply to them. Highlight the importance of giving to balance their perspective.
Moving Forward
[Q]: What should we do once we realize our mental health is negatively affecting our finances?
Dr. Evans: If therapy or an Accredited Financial Counselor isn’t an option, start small:
- Pick ONE area: (e.g., “I want to pay my phone bill on time.”)
- Define the mental goal: (e.g., “I want to sleep seven hours tonight.”)
- Take two steps per week: Small actions build the confidence needed to tackle larger goals later.
[Q]: Finally, who should we share these struggles with?
Dr. Evans: Only those you trust to support your changes, not those who will judge you or encourage poor choices.
Disclaimer
Please note that the financial advice and information presented on this blog are not personalized to your specific financial circumstances. This post is for informational purposes only and is not tax, legal, accounting, or investment advice. The Little CPA does not create a professional-client relationship by publishing this content. Please consult a qualified professional before making decisions based on this information. Any reliance you place on the information provided is strictly at your own risk.
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