Understanding Financial Stress and Anxiety: A Psychodynamic Perspective

Money stress is something almost everyone experiences at some point. Bills pile up, unexpected expenses appear, and suddenly our stomachs twist in knots thinking about finances. While creating a budget or cutting expenses can help, sometimes these solutions only scratch the surface. If your money worries feel overwhelming, there might be deeper emotional roots, this is where a psychodynamic approach can offer insight (McWilliams, 2011). Psychodynamic theory focuses on the unconscious mind and how early experiences shape adult behavior (Freud, 1915; Fonagy & Target, 2007). When it comes to money, childhood experiences often play a huge role. For example, someone who grew up in a household where money was always tight may carry a deep-seated fear of scarcity, even as an adult. On the other hand, inconsistent financial support during childhood may link money with stress, conflict, or feelings of inadequacy. These early experiences can create patterns that show up in adult life. Maybe you overspend to feel temporary comfort, avoid bills out of fear, or struggle to save despite knowing it’s important. Psychodynamic theory suggests these behaviors are coping strategies shaped by unconscious fears and past experiences (Kernberg, 2016).

Another key idea in psychodynamic thinking is defense mechanisms, the unconscious ways we protect ourselves from uncomfortable feelings (Vaillant, 1992). In financial matters, these might include:

Denial: Ignoring bills or bank statements.

Projection: Blaming others for your financial problems.

Regression: Expecting others to provide for you like a child.

Recognizing these patterns can help you understand why money sometimes feels like an emotional minefield.

Money isn’t just dollars and cents, it carries symbolic meaning. It can represent independence, security, self-worth, or even love (McWilliams, 2011). Financial anxiety may arise when these symbolic associations clash with our fears. For example, someone might feel guilty about spending on themselves or fear losing love if they don’t meet certain financial expectations. Psychodynamic therapy helps uncover these unconscious beliefs, giving clients insight into the emotional forces driving their financial decisions. In therapy, questions like:

“What feelings come up when you think about paying bills?”

“How did your family talk about money when you were growing up?”

These can reveal patterns that have shaped your relationship with money for years. 

Financial stress isn’t just about money, it’s about emotions, beliefs, and patterns that live beneath the surface. By exploring the unconscious roots of financial anxiety, psychodynamic therapy can help you understand your behavior, reduce stress, and build a healthier relationship with money. After all, the more we understand ourselves, the freer we are to make decisions that truly serve us.

Written by: Brikena Gjylameti