Healing financial trauma: steps to reclaim your money mindset

WHILE financial trauma has the power to unravel lives and cause analysis paralysis when it comes to money decisions, there are ways to address this underlying issue head-on to become financially fruitful.

- NONTOKOZO MADONSELA

Being born in January, a month when money was always tight, meant birthdays felt like an afterthought. Gifts were often necessities, like a school uniform or a replacement for a lost umbrella, rather than items I truly desired. These moments, though seemingly small, left lasting imprints on my relationship with money. For people with financial trauma, stress isn’t just an occasional burden; it runs deep, shaping the way they think, feel, and make financial decisions long into adulthood.

Money trauma can stem from a variety of factors, from large-scale issues, like the recent global pandemic or an economic recession. It can also emanate from personal experiences, such as losing a loved one who may have been the breadwinner, getting divorced, or losing a job. However, one significant factor contributing to financial trauma is a history of poverty or generational financial struggles.

The reality in South Africa is that some people are more vulnerable to financial trauma than others. Growing up experiencing persistent financial hardships can create a cycle of adversity that perpetuates the trauma across generations," she added. "Limited access to resources, education, and a stable job can make it challenging to escape financial distress.