What Is "Financial Avoidance"? Experts Say Stress & Shame Play A Big Role

"There's a very particular kind of dread that comes with even the most mundane daily routines when money is tight. Maybe you mentally tally up your groceries before you even get to the checkout line. Or you ignore that unopened bill sitting on top of your mail stack. You know you need to take a peek at your credit card balance, but when that thought pops into your head you tell yourself you'll "deal with it this weekend"... only for another month to pass before you actually do look."

"For a lot of people ( especially right now), avoiding money is less about irresponsibility and more about feeling overwhelmed. And experts say there's a name for that: financial avoidance. "Financial avoidance isn't about laziness or lack of discipline," says Jack Howard, Head of Money Wellness at Ally Bank. "It's often a stress response.""

"Think of it as a defense mechanism. When your money situation feels uncertain or even impossible to "fix," your brain tries to protect itself by looking the other way. Of course, most of us are also aware that this isn't a solution that typically works out well. While avoidance can provide short-term relief, experts say it can create a cycle that ultimately makes financial stress worse."

"The reality is that people's fears and feelings surrounding money right now are not irrational, and their financial anxiety isn't hypothetical. Grocery prices remain sky-high. Childcare costs are crushing. Housing, healthcare, the list goes on. We're out here just trying to absorb rising costs when our incomes aren't increasing to match. Everyday life has left us stretched impossibly thin."

Financial avoidance can appear in everyday routines when money is tight, such as delaying bill checks, mentally tallying groceries, or postponing credit card balance reviews. Many people avoid money not due to irresponsibility, but because they feel overwhelmed. Financial avoidance functions as a defense mechanism when uncertainty or perceived impossibility makes the brain try to look away. Avoidance may bring short-term relief, but it can create a cycle that increases financial stress. Fears about money are often grounded in real pressures like high grocery prices, expensive childcare, and rising housing and healthcare costs. Incomes may not rise enough to match these costs, leaving people stretched thin. Small, low-pressure steps can help reduce anxiety that drives avoidance.

Read at Scary Mommy