A fear of money can stem from a variety of causes such as money trauma from𒐪 early poverty, divorce, or a significant financial lo💙ss. It can result from a lack of financial education. Managing personal finances can be stressful for anyone and that stress can go above and beyond your typical day-to-day worries, especially for young people.

No matter the sꦛource of yo൩ur money fear, you have options to deal with it. We spoke with three financial professionals to learn what people can do to address and overcome it.

What Is Fear of Money?

There’s a clinical diagnosis for fear of money and managing money: chrometophobia. It can lead to symptoms like anxiety, excessive worry, obsessive behaviors, and even physical ailments. Those with chrometophobia can’t avoid the thing they’re afraid of entirely unlike wit♔h other phobias. It’s a central part of our lives.

It can still hold you back from progressing in your finances and reaching your goals even if your financial anxiety isn’t extreme.

What Causes Fear of Money?

Their fear of money dates back to their childhood for many people and the messages they received abou♒t money. Perhaps you had traumatizing experiences with money as a child or you watched your parents struggle with money issues. Maybe you were affected by their mo🃏ney beliefs.

“Children often absorb and mirror their parents’ financial attitudes which means parental anxiety or negativity about money can directly impact their children’s financial perceptions,” says , a certified financial plan🅺ner and certified financial therapist with Epiphany Financial Therapy.

Their fear of money results from a lack of education about it f🧜or many young people. “Many young individuals feel ill-equipped to handle their finances due to a glaring absence of formal financial literacy education in their upbringing. This educational gap leaves them unprepared and anxious about managing money,” Hathai says.

This fear can manifest in several ways that can have a significant negative impact on someone’s finances. “Some young people may resort ▨to avoidance, steering clear of financial responsibilities, or ignoring bank statements,” says Hathai. “Others might find themselves in the throes of overspending, using it as a form of escapism or a way to seek validation.”

She notes that another common manifestation of a fear of money is the underutilization of financial products. Some might avoid investing in their employer’s 澳洲幸运5开奖号码历史查询:401(k) plan becaus🌌e they either do🔜n’t understand how it works or they're afraid of losing money.

How to Address Your Fear of Money

The first step in addressing your feไar of money has nothing to do with money management and everything to do with your relationship with money. “To begin addressing these fears, the f🦹irst and most crucial step is acknowledgment and reflection,” Hathai says.

Some young people may be able to draw a straight line from their fear of money to a traumatic event that happened in their childhood. Perhaps they grew up in poverty or watched their parents lose their wealth. People with a fear of money may not be aware of the root causes, however. This is where reflection can be particularly h𓃲elpful.

“It involves recognizing your fear of money and introspectively examining your emotions a🀅nd thoughts about money,” Hathai says. “This process of reflection, perhaps through journaling, can shed light on the underlying causes of your financial anxieties.”

Common underlying causes Hathai has seen include a lack of financial education, parental influence, societal pressures, and past experiences with money. You can take tangible financial steps to address your fear of money and starജt making progress toward a more stable financial future when you’ve gone through this introspective exercise,

Take Time to Educate Yourself

Their fear of money stems from a澳洲幸运5开奖号码历史查询: lack of education and knowledge of personal finance for many young people. More states are passing laws requiring 澳洲幸运5开奖号码历史查询:financial education in schools but many people in their 20s haven’t benefited from those laws.

“Thanks to technology, more resources are available than ever before to learn about money and take steps toward a strong financial future,” says , an accredited financial counselor and founder of Beworth Finance. “From books to online co༒urses and podcasts, there are more learning opportunities available today with more minority representation than ever before.”

He🌠re are a few rꦰesources that may help you improve your financial literacy:

• Websites, podcasts, and social media pages by financial professionals, such as the “” podcast by Farnoosh Torabi or “” by Tori Dunlap

Identify Your Goals

Settꦬing specific and achievable financial goals can help you take your first steps on your financial journey. Having s✃omething to aim for gives you a starting point.

“These may be things like building credit, paying down debt, or building up an 澳洲幸运5开奖号码历史查询:emergency fund but each should have an associated dollar amount and date (🐲I will have $1,000 in my em♚ergency fund by May 2025),” Hamilton says.

Break them down into small, tangible steps when yo♐u’ve identified your financial goals. Rath൲er than adding “pay off debt” to your to-do list, break the goal down into smaller steps that may include:

• Making a list of all your debts
• Adding up your total debt balance
• Listing your debts in order of importance to pay off
• Deciding how much to allocate toward debt each month
• Setting up autopay on your debt accounts

“Ultimately, it is a lot easier to be good with mone🌜y once you’ve mapped 🗹out what you’re trying to achieve and it doesn’t have to be as complicated as you think,” Hamilton says.

Start Small

You can’t get over your fear of money and master your finances all in one sitting. Starting small instead can help you ease into money management in a way that you’re comfortable with. You're more likely to stay consistent if your financial to-do list is more approachable.

One of the best ways to start small is by slowly building savings. Having an 澳洲幸运5开奖号码历史查询:emergency fund can do wonders to eꦫase your fear of money but it can take time to build. Set the goal of saving just a small amount per week rather than pressuring yourself to build y🌄our entire emergency fund all at once, Even $5 is better than nothing.

You might reach your goal more quickly if you try to buil🐭d your entire emergency fund 🔯in just a month or two but you could also burn out and give up entirely. You might devote all your disposable income toward your emergency fund for a couple of months only to pull that money out a month or two later because you haven’t prioritized your other financial responsibilities.

澳洲幸运5开奖号码历史查询:Investing is another example of how you can start small. “You no longer need a ♏financial advis🅘or or $100,000 to start investing,” Hamilton says. “Instead, starting with as little as $5 or $20 on your phone or laptop can reduce the fear that you’ll make a big mistake or the necessity to talk to someone, which can feel intimidating.”

Create Appointments With Yourself to Check in

An excellent way to ensure that you’re on the right track is to make appointments to check in with yourself. You can revisit the financial goal♏s and tasks you’ve set for yourself to make sure you’re gradually checking things off your 🥃list.

“Consistency in reviewing♊ and adjusting financial plans and celebrating each milestone, no matter how small, can foster a healthier relationship with money,” Hathai says.

These regular check-ins are also a g꧑ood opportunity to consider other financial goals. You may feel comfortable setting more aggressive goals around saving, investing, and income as your financial education and confidence grow,

When to Seek Professional Advice

It may be worth seꦚeking out the help of a professional such as a financial thera🐈pist if your fear of money is preventing you from living a normal life or addressing your financial obligations.

“Financial therapists work with people on the intersection of their emotions and their finances,” says , a💞n associate professor and licensed professional counselor at Shades of You Counseling and Consulting. “A financial therapist can help facilitate an understanding of your money behaviors and the underlying emotio💙ns driving those behaviors to help you develop a different relationship with money and be successful in engaging in new money behaviors.”

A financial planner or advisor is another type of professional to consider working with. Theꦐy may not be qualified to help address all the emotional aspects of your🦂 fear of money but they can help you establish a money management plan that can give you peace of mind and reduce your money anxieties.

The Bottom Line

A fear of money may be holding you back and causing you to overspend, over-save, or even ignore your finances entirely. You can add♔ress and overcome it, however, regardless of whether your money fear is a result of a lack of education or past financial experiences.

“The more you understand about how money works, the more you can optimize what you have instead of letting f🎃ear limit your true financial po🌸tential. And for young people especially, the sky’s the limit,” Hamilton says.