Depression doesn’t just take a toll on your mental and physical health. It can also have a significant impact on your financial decisions. From impulsive spending to avoiding budgeting altogether, depression can affect the way people manage their money in ways that aren’t always obvious.
In this article, we’ll break down how depression influences both spending and saving habits and offer tips for finding a healthier financial balance.
Contents
Emotional Spending and Retail Therapy
When someone is feeling low or overwhelmed, shopping can become a temporary mood booster. This impulse buying is often referred to as “retail therapy.” The dopamine hit from buying something new may feel good in the moment, but that feeling is usually short-lived—and often followed by regret.
People with depression may:
- Shop online late at night out of boredom or sadness
- Buy items they don’t need just to feel something
- Use credit cards to numb emotions, racking up debt without realizing it
Tip: If you find yourself reaching for your wallet during emotional lows, try setting a “cooling off” period. Wait 24–48 hours before making any non-essential purchase to help break the cycle of impulsive spending.
Avoidance of Financial Tasks
Depression can drain your energy and motivation, making even small tasks feel overwhelming. This can lead to putting off important financial responsibilities like:
- Paying bills on time
- Checking bank accounts
- Creating or maintaining a budget
- Responding to financial notices or emails
This kind of avoidance can result in late fees, overdrafts, or missed payments that only add to the stress and guilt.
Tip: Automate as many financial tasks as possible, such as setting up automatic payments and savings transfers, to reduce the burden of having to do it manually when your energy is low.
Guilt and Shame Around Finances
People with depression may already feel a deep sense of worthlessness or failure. Add in debt, overspending, or a lack of savings, and those feelings can intensify. It becomes a vicious cycle:
Depression → poor financial choices → guilt → more depression → more poor financial choices
Some may even avoid reaching out for financial help or support due to embarrassment.
Tip: Be kind to yourself. Your financial challenges do not define your worth. Reaching out to a trusted friend, therapist, or financial coach can help you start untangling the emotional and financial threads.
Saving May Feel Impossible
When someone is dealing with depression, thinking about the future, especially long-term goals like retirement or emergency funds, can feel meaningless or overwhelming. This might lead to not saving at all, or constantly dipping into savings for temporary relief.
Tip: Start small. Even saving $5 a week is a step in the right direction. Use automatic transfers to build a savings habit without having to think about it too much.
When to Seek Help
If you notice that your financial habits have drastically changed or are causing you distress, it may be time to talk to a mental health professional. Depression is a medical condition, and support is available. Likewise, financial counselors or nonprofit credit counselors can help with budgeting and debt if money management feels unmanageable.
Final Thoughts
Depression doesn’t mean you’re bad with money. It means you’re struggling, and that’s okay. Understanding the link between your mental health and financial behavior is the first step toward creating a healthier relationship with both. Small changes can lead to big shifts over time.
Remember: You are not alone, and support is out there for both your emotional and financial well-being.
