How Can We Address Financial Trauma with Na Li
On this episode of Financially Naked: Stories from The Financial Gym, our host is Rachel Adaline, HR Manager at The Financial Gym and she is joined by Joy Liu, Certified Level 2 Financial Trainer, and licensed therapist Na Li, one of Joy’s clients.
The Financial Gym has a Diversity, Equity, Inclusion, & Belonging (DEIB) Program. To share that internal program with the community, this show's last episode of each month is dedicated to a financial topic with a DEIB twist.
In today's episode, we'll explore a crucial aspect of personal finance that often goes overlooked: financial trauma. We'll shed light on what financial trauma is, how it specifically impacts marginalized communities, and discuss actionable strategies to confront and conquer our financial traumas head-on.
Podcast Notes
Na is a licensed therapist and social worker who works with primarily Asian, BIPOC, women, immigrant, and queer communities.
Na first learned about mental health when she was in college. Therapy and mental health were stigmatized in the community she grew up in, as it is in many communities. This has been changing, and Na wanted to be part of that change and help her community.
Financial trauma affects everyone, but marginalized individuals and communities face additional challenges in navigating financial systems, accessing resources, and building wealth.
Addressing financial trauma is an important step in healing from the impact. By acknowledging trauma, you can take steps to seek support and develop a positive action plan.
Mental health and financial health are directly related, but it’s not necessarily about the amount of money in the bank, but rather how you feel about and relate to your money and financial situations. There are people with both negative net worth and millions of dollars of net worth afraid of running out of money.
When we talk about financial trauma, it’s important to avoid phrases like, ‘pull yourself up by your bootstraps.’ We must approach financial trauma with empathy and understanding, both on an individual and systemic level. Without addressing the systemic issues, we cannot work towards community healing.
What is Financial Trauma?
Financial trauma is the psychological, emotional, and physical symptoms triggered by various financial stressors. It encompasses the impacts on a personal well-being caused by a person’s financial circumstances. Can be sudden or prolonged.
Financial trauma, like any other form of trauma, can deeply affect our lives, leaving lasting imprints on our emotional, mental, and even physical well-being as trauma is stored in our body and our brains.
It encompasses a range of experiences, from sudden economic downturns, overwhelming debt burdens, and unemployment, to systemic inequalities and cycles of poverty. These feelings come from a very real place and experiences. Our brains are not just making these feelings up out of nowhere.
For people who have experienced financial trauma, it’s very common to have a scarcity mindset. It feels like there are not enough resources and we get trapped in survival mode. When this happens, regulating our emotions is challenging and making decisions becomes difficult. Decisions are made from fear, rather than a place of empowered choice.
What are some signs of financial trauma?
It is important to acknowledge our trauma and scarcity mindset comes from a very real place.
Financial trauma can show up in a number of ways and will look different for everyone. Some common symptoms are:
Feelings of anxiety or stress. You may be constantly worried about money or feel a sense of impending doom related to your finances.
Avoidance and Denial. For some people, it is too challenging to even think about their finances so they avoid it altogether. They may ignore bills or avoid talking about money all together. While this can provide temporary relief, it is not a healthy long term solution.
Relationship Strain: Financial trauma can strain relationships with everyone in our lives, leading to communication breakdowns and even long term feelings of resentment.
Excessive Frugality or Over Spending: Some folks become extremely frugal as a trauma response, being afraid to spend any money. For others, overspending is a way to help cope with emotional distress.
How can we address our financial trauma head on?
Understand there is no magic button to push that will magically solve the systemic issues that cause financial trauma or fix our own feelings. Getting financially healthy is a lifelong journey and addressing your financial trauma is just one aspect of it.
If you can afford to, work with a professional who can help you navigate the healing process. This can be a therapist, counselor, or Financial Trainer. There is no shame in asking for help. We all have areas of life that can benefit from the support of a professional.
Knowledge is power. Most of us weren’t taught a lot about money growing up, as our parents were doing the best they could. Like any language, you can learn the basics of personal finance and expand your knowledge.
Let go of any feelings of shame and talk about it with others. The more we are alone, or sit in secrecy, we allow the shame to brew. Understand your feelings about money and where they come from.
Practice discipline through self compassion. It’s okay to be scared or nervous, but if you want to make a change, stick with it. Make a promise to yourself and follow through. Understand this is a process and approach it with mindfulness and intention.
A financial journey and working through financial trauma takes time and work. Give yourself the permission to go through the process. Know there is an abundance of resources out there, but you don’t just manifest things out of nowhere. In addition to working on your mindset, there is learning and logistical work to do. It’s a combination of everything.
If you want to work with a Certified Financial Trainer to help navigate your money minder, financial trauma, or overall finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.
Resources
What My Bones Know: A Memoir of Healing from Complex Trauma - Book by Stephanie Foo
Connect with Na Li, LCSW
Website: therapywithna.com
Meet The Trainer
Rachel Adaline, Human Resources Manager
Joy Liu, Level 2 Certified Financial Trainer