Money fear: How financial worries can determine everyday life – and 4 tips against the toxic thought spiral

Fear of money: 4 tips against “chrematophobia”

Do you tend to only check your account balance in urgent emergencies? Do you leave invoice letters unopened for several days? Or do you break out in a sweat when friends talk about investment options or retirement planning? Then you may suffer from “chrematophobia” rather than “money fear”. And you are not alone. According to a survey by R+V Versicherung entitled “The Fears of Germans”, almost two thirds of those surveyed in 2023 said they were most worried about not being able to afford certain things. In addition, 60% of those surveyed said they were afraid they would soon no longer be able to find affordable housing. And 57% fear tax increases and/or cuts in social benefits.

Fear of money is widespread in 2023 – and particularly affects women

Of course, the all-encompassing concern about money doesn’t come out of nowhere. With an inflation rate of 3.8% (as of October 2023), the purchasing power of many Germans has fallen significantly in recent years. Prices, on the other hand, continue to rise, which is an extreme problem for many households. Anyone who sees no way out of the financial emergency can quickly fall into a kind of avoidance strategy and – ironically – simply do nothing out of fear of being unable to act. Don’t even open invoices. Playing dead will hopefully pass.

As if that weren’t enough, various studies have found that women are disproportionately more likely to experience money anxiety than men due to traditional (and outdated) gender roles in parenting, as financial expert Pete Ridley notes. Women have often been raised to believe that money is “men’s business,” and so many women simply don’t have enough practice in dealing with money. “This discrepancy can lead to a lack of confidence when making financial decisions, which in turn can create anxiety around money,” explains Ridley. But of course it’s not just upbringing that leads to the fear gap between the genders, but also the immense wage gap that still exists. It is equally critical that more women are still taking on unpaid care work and are often reducing their hours at work or taking longer parental leave than men, which in turn leads to a greater risk of poverty in old age.

All of this is overwhelming. But one thing doesn’t help in financial crises: escapism. For this reason, we have collected 4 helpful tips to help reduce the fear of dealing with finances.

4 tips to combat money fear

First of all, a small disclaimer: Of course, these tips won’t help make living space suddenly cheaper or make us earn more all of a sudden. But they can help you feel less alone with money worries and gain the courage to pay bills earlier and so on. And that’s a big step in dealing with money.

1. Financial Literacy: Anyone who has the feeling that they simply don’t know enough to be able to make important financial decisions sensibly is not alone – and can benefit from a whole range of educational offers. Taking courses, workshops, or reading books about financial planning can help you gain confidence in your abilities. The adult education center, for example, regularly offers information courses that deal with investments, savings tips, retirement planning and questions about income tax. It’s worth taking a look at the course program!

2. Don’t stay alone: When it comes to entrenched fears around money, shame often plays a big role. But overcoming this can be a huge help in the fight against fear. For some, this can be achieved, for example, in open conversations with partners, friends or family members. “Body doubling” can also be a helpful practice. To do this, you ask someone you trust to come by on a certain day and open invoices together, sort tax documents or make transfers. You will see that there is almost nothing that is not easier with a friend and a cup of tea.

3. Set financial goals: Setting clear financial goals and developing a plan can help regain a sense of control and reduce fear of money. For example, do you know how much money you spend on food each month? Or how many subscriptions you pay per month that you could have canceled a long time ago? So-called cash stuffing can also help here. A technique in which you sort a certain amount into a folder for a specific purpose at the beginning of the month. This way you can really keep an eye on your expenses.

4. Professional help: Are you in deep crisis or don’t know where to start? Then tax advice or debt advice may be right for you. Especially with the latter, you not only deal with expert staff, but also with trained social workers who deal with worries and fears about money on a daily basis. There is usually an offer from the city directly or from non-profit organizations such as Caritas.

You can find out more about financial education, retirement planning and simple savings tips here:

This article was created with text passages from our GLAMOR colleagues in the UK.