Financial Stress, Cost of Living, and Mental Health: Why So Many People Are Struggling Right Now

What Our Ottawa Therapists Wants You to Know

For many people, financial stress has become a constant presence in daily life. After the holidays, that pressure often intensifies. Credit card balances may be higher, savings lower, and the cost of living continues to rise across Ontario. When financial stress is paired with job uncertainty, housing concerns, and economic instability, it can deeply affect mental health.

If you are struggling financially right now, you are not alone. Many people are experiencing money anxiety, financial overwhelm, and stress related to the cost of living. This is especially true for younger adults trying to build stability in a challenging economic climate.

Why Financial Stress Feels Especially Intense Right Now

Across Canada, the cost of living has increased significantly in recent years. Rent, groceries, utilities, transportation, and basic necessities all cost more, while wages have not always kept pace. For many people, this creates ongoing anxiety about money and financial security.

Job insecurity is another major contributor to financial stress. Younger people, in particular, may be navigating contract work, underemployment, layoffs, or difficulty finding stable jobs. Even those who are employed may feel uncertain about the future, making it hard to feel safe or plan ahead.

For some, this creates a sense of being stuck financially, despite working hard or doing everything they were told would lead to stability. Financial stress is not just about money. It is about safety, control, and the ability to imagine a future that feels manageable.

How Financial Stress Affects Mental Health

Ongoing financial stress can have a significant impact on mental health. Money anxiety often shows up emotionally before people connect it to finances. You might notice constant worry, racing thoughts, or difficulty relaxing. Others experience low mood, emotional exhaustion, or symptoms that feel similar to depression.

Financial stress can also affect motivation. When you feel overwhelmed by bills, debt, or uncertainty, even small tasks can feel impossible. This lack of motivation is not laziness. It is a common response to chronic stress and anxiety.

Common mental health effects of financial stress include:

• Anxiety about money and the future

• Feeling overwhelmed or emotionally drained

• Low mood or symptoms of depression

• Difficulty sleeping or constant tiredness

• Irritability or emotional reactivity

• Avoidance of financial responsibilities

• Increased conflict or strain in relationships

  
  

Over time, carrying financial stress alone can lead to burnout, emotional shutdown, or a sense of hopelessness.

Why Financial Stress Can Feel So Personal

Many people internalize financial stress as a personal failure. You may find yourself thinking that you should be doing better, earning more, or handling things more effectively. Social comparison can intensify this, especially when it seems like others are moving ahead more easily.

In reality, financial stress is often shaped by broader economic factors that are outside individual control. The cost of living, job market conditions, housing availability, and systemic barriers all influence financial stability. Feeling anxious, discouraged, or overwhelmed in this context is not a sign of weakness. It is a human response to prolonged stress.

Financial stress also impacts identity. Money is tied to independence, security, and self worth, which is why struggles in this area can feel deeply emotional and isolating.

Why Financial Stress Can Be Hard to Talk About

Money stress often comes with shame, which can make it difficult to reach out for support. Many people worry they will be judged or told to simply budget better or work harder. This can lead to isolation, even when the emotional burden feels heavy.

Therapy offers a space where financial stress can be talked about without judgment. It is not about giving financial advice. It is about understanding how money anxiety and economic pressure are affecting your mental health, relationships, and sense of self.

How Therapy Can Help With Financial Stress and Anxiety

While therapy cannot change the economy, it can help you manage the emotional impact of financial stress in meaningful and supportive ways.

In therapy, you can:

• Explore anxiety, fear, or shame related to money

• Understand how financial stress is contributing to low mood or depression

• Learn tools to manage overwhelm and chronic stress

• Address avoidance patterns linked to anxiety

• Build emotional resilience during financial uncertainty

• Reconnect with a sense of agency and self compassion

  
  

Therapy helps shift the focus from self blame to understanding. It offers support when things feel uncertain and overwhelming, and helps you feel less alone while navigating financial stress.

You Are Not Alone in Feeling This Way

If you are feeling anxious about money, struggling financially after the holidays, or overwhelmed by the cost of living, you are not alone. Many people across Ontario are quietly carrying similar worries, even if it does not always show on the surface.

Reaching out for mental health support does not mean you are failing. It means you are responding with care to a difficult situation.

Accessing Therapy When Finances Are a Concern

We know that financial stress can make it harder to reach out for support, especially when therapy itself feels out of reach. At Catharsis, we believe mental health care should be as accessible as possible, particularly during times of economic strain.

To help reduce financial barriers, we offer a range of options depending on eligibility and availability. This includes sliding scale therapy, as well as working with programs such as Employee Assistance Programs (EAP), NIHB, and Blue Cross. These options can help make therapy more affordable for many people.

We also offer pro bono and low-cost therapy through our therapy interns, who are supervised and supported by experienced clinicians. This can be a helpful option for individuals seeking support while navigating financial stress. Availability and eligibility vary, so we encourage you to inquire to learn more.

If you’re unsure what options might apply to you, we’re happy to talk it through. Financial stress should not be a reason you have to face things alone, and exploring your options can be a meaningful first step.

Looking for Support?

Catharsis Psychology and Psychotherapy offers in person therapy in Ottawa and virtual therapy sessions across Ontario. Our team includes BIPOC therapists who provide culturally responsive, affirming mental health care.

If financial stress, money anxiety, low mood, or lack of motivation has been affecting your well being, therapy can offer support, understanding, and practical tools to help you cope during a challenging time.

When you are ready, we are here to help. Book a Consultation to learn more 💜

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