financial therapy for financial ptsd
in california

Financial PTSD, or financial post-traumatic stress disorder, is a term used to describe the emotional and psychological impact of past financial traumas or distressing financial experiences on an individual's mental wellbeing. While not an official diagnosis in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5), the term is sometimes used colloquially to capture the lasting effects of severe financial stress or crises.

what are the symptoms of Financial ptsd

  • Financial PTSD may result from experiencing significant financial setbacks, such as bankruptcy, foreclosure, job loss, or a major economic downturn. These events can lead to a sense of loss, fear, and uncertainty that extends beyond the immediate crisis.

  • Individuals with financial PTSD may experience a range of intense emotions, including anxiety, depression, fear, guilt, and shame related to their financial struggles. These emotional responses can persist long after the initial financial trauma has occurred.

  • Certain events or situations can trigger intense emotional reactions in individuals with financial PTSD. For example, discussions about money, unexpected expenses, or experiences that remind them of past financial hardships may bring up strong emotional responses.

  • People with financial PTSD may develop a heightened state of vigilance and anxiety regarding financial matters. They may become excessively cautious or avoidant when it comes to money management, making it challenging to engage in healthy financial behaviors.

  • Financial PTSD can impact various aspects of daily life, including relationships, work, and overall well-being. Individuals may struggle with trust issues, have difficulty making financial decisions, or experience challenges in maintaining stable employment.

  • Individuals with financial PTSD may develop maladaptive coping mechanisms, such as excessive frugality, hoarding money, or avoiding financial discussions altogether. These behaviors can affect their ability to build and maintain healthy financial habits.

financial ptsd client examples

Here are examples of clients experiencing PTSD who would benefit from Financial Therapy.

LING LING

Ling Ling is in her mid-30s. In 2008 during the recession, she lost her house due to job loss. She was unemployed for a period of time and racked up credit card debt that she was eventually able to pay off when she acquired another job. She has saved for a down payment and now has a healthy emergency fund. She would like to buy another house but becomes increasingly anxious when meeting with a mortgage lender. The thought of potentially losing her house is overwhelming to her. She has not healed from her prior loss.

pedro

Pedro is in his early 40s and his marriage recently ended following identifying that his ex-wife had run them into large amounts of debt without his knowledge. He spent many months identifying and reconciling debts. He is in another relationship but is untrusting financially of his partner. He wants to be able to trust again so that it does not impact future relationships.

Financial PTSD Financial Therapy in California

Koru Financial Therapy can help you heal from from financial ptsd

Koru Financial Therapy can be a valuable resource for individuals experiencing financial PTSD, as it addresses both the financial and emotional aspects of their distress. Read below for ways in which Koru Financial Therapy can help.

  • Koru Financial Therapy provides a safe and supportive environment for individuals to express their emotions related to past financial traumas.

    We help clients process feelings of anxiety, guilt, shame, or fear associated with their financial experiences.

  • Koru Financial Therapy works with individuals, couples, and entrepreneurs to identify specific triggers that exacerbate their financial PTSD.

    Understanding the situations or events that provoke intense emotional responses allows individuals to develop coping strategies.

  • Koru Financial Therapy focuses on helping individuals recognize and change maladaptive behaviors related to their finances.

    We assist clients in developing healthier money management habits and breaking cycles of avoidance or hypervigilance.

  • Koru Financial Therapy helps individuals develop resilience in the face of financial challenges.

    This may involve setting realistic financial goals, creating a budget, and implementing strategies to improve financial well-being.

  • Financial therapy often involves working with couples or families to improve communication about money matters.

    Better communication helps build trust and understanding, reducing the emotional impact of financial stress on relationships.

  • Koru Financial Therapy provides education on money management, budgeting, and other practical financial skills.

    Improving financial literacy empowers individuals to make informed decisions and feel more in control of their financial situations.

  • Koru Financial Therapy explores the underlying beliefs and attitudes that contribute to financial PTSD.

    Addressing these deeper issues helps individuals gain insight into their financial behaviors and fosters lasting change.

  • Koru Financial Therapy assists individuals in setting realistic financial goals and creating a plan to achieve them.

    Establishing a sense of financial direction and progress can positively impact an individual's overall well-being.

  • Koru Financial Therapy can collaborate with financial planners, advisors, accountants, mental health therapists, or other professionals to provide a comprehensive approach to financial healing.

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