The steady rise in inflation, food prices, and currency devaluation in Nigeria is not only affecting people’s wallets; it’s wounding their sense of safety, identity, and mental wellbeing. But beyond the spreadsheets and headlines, a more subtle crisis is unfolding: financial trauma, JOSEPHINE OGUNDEJI writes

Francis David always felt like his money had legs. Every month, after receiving his salary, he would take a deep breath and promise himself: this time will be different.

He would draw up a budget, transfer some money into savings, and plan meals to cut costs. But somehow, by the second or third week, the balance would drop again, drastically and silently. He would stare at his bank app in disbelief, racking his brain for what went wrong.

He hadn’t bought anything extravagant, hadn’t travelled, and hadn’t splurged. Yet the money had vanished, like mist in the morning sun.




It wasn’t that he lacked income, as his job paid him enough to live decently.

Still, he felt constantly short. His money would trickle out in small, unmemorable expenses: N3,000 here for fuel, N2,000 there for airtime, a few transfers for family support, then daily expenses that didn’t look like much on their own but collectively bled his account dry. He tried keeping a ledger once.

By the end of the month, he felt even more defeated, not by what he spent, but by how little room he had to breathe. No matter how well he planned, something always came up to eat the margin.

However lately, what disturbed David wasn’t just the numbers; it was the feeling behind them.

“I don’t think this is just poor planning anymore,” he admitted, voice low and tired.

“I have done the work, I have tracked my spending, cut down on unnecessary things, and even cancelled things that brought me joy, just to stay afloat. But money doesn’t stay with me. It comes in, and then it just… evaporates. And sometimes, I can’t even point to what I used it for. It feels spiritual, like my village people are monitoring me, like I’m fighting something I can’t see.”

He went quiet for a moment, then continued, “There are times I just lie on my bed and talk to God, not even praying loud, just thinking, asking, what am I doing wrong? Because I pay my tithe, I give; I don’t hoard. I help when I can. I work hard. But it’s like the more I try to do the right thing, the harder it becomes. I’ve even started feeling like money avoids me. Like I have this invisible hole somewhere, and it’s not just painful, it’s embarrassing. Because how do you explain this to people? They think you’re careless or lazy. But you’re not. You’re just exhausted.”

The worst part, for David, was the emotional toll it took. Every debit alert, no matter how small, triggered anxiety. Every unexpected expense felt like punishment. He started dreading the end of the month more than the beginning.

“I just want to feel safe. I don’t even care about being rich. I just want to be able to hold money and know it will last until the next one comes. I want to stop waking up in fear of my own balance. I want to stop associating money with shame,” he retorted.

In the face of Nigeria’s worsening economic conditions, soaring inflation, high unemployment, and rising poverty, many people are grappling not only with financial pressure but also with a deeper, more silent burden: money trauma.

Money trauma refers to the psychological distress caused by prolonged financial instability, poverty, or negative experiences around money, especially from childhood or past crises. It goes beyond budgeting mishaps or failed investments. It manifests in deeply ingrained fear, anxiety, and shame around earning, spending, saving, or discussing money.

Experts say this issue was widespread, though not always recognised.

In Nigeria, where survivalism often takes precedence over mental wellness, financial trauma is easily overlooked or dismissed.

Yet, the effects are profound: chronic anxiety about the future, avoidance of bank statements or investment opportunities, hoarding, impulsive spending, or extreme guilt after financial decisions.

According to Maryville University, many people worry about money, but when faced with a serious financial setback, worry can become crippling anxiety.

It said in a statement, “It doesn’t take a pandemic to send people’s finances into a tailspin, but the economic turmoil that a pandemic can cause heightens the immediate need for financial therapists who are trained in helping people overcome money-related fears and re-establish control over their finances.

“Financial therapy is counsel that combines financial advice and emotional support to help people manage financial stress. Worrying about money and financial matters can have a crippling effect on people, negatively impacting their family life, work, and all other aspects of their lives.”

The field of financial therapy arose in the aftermath of the Great Recession of 2007-2008, although its roots go back to the 1990s, when researchers began to look more closely at the psychological and emotional aspects of money. In 2019 the Financial Therapy Association External implemented its Certified Financial Therapist programme for both financial and mental health professionals.

One of the founders of the FTA is Rick Kahler, a financial planner and therapist whose research on people’s emotional and psychological relationship with money found that 90 per cent of financial decisions are made emotionally.

However, financial planners aren’t trained in behavioural therapy, and therapists don’t have a background in financial planning. The goal of financial therapy is to instil in people a positive attitude about their finances, which is the first step in setting and achieving financial goals.

Like many other aspects of life, when people change their perspective about money from negative to positive, they are more likely to think and behave in ways that allow them to build real wealth.

An assistant professor for Maryville University’s online finance programme, Erika Rasure, emphasised the importance of individuals having confidence and faith in themselves to make the right [financial] decisions no matter what life throws at you.

“Mindset and attitude tend to mirror a person’s financial success. If you’ve got a negative mindset, your finances are likely to reflect that bad attitude. Sometimes when a person feels that they aren’t making headway toward meeting their goals, they find themselves in a very crowded negative headspace.

“That personal financial success is a continuous learning process. We all must be flexible, make changes, and adapt as we go along. Ultimately, confidence and faith in yourself to make the right decisions no matter what life throws at you is a huge part of financial success. It is trusting yourself to get out there and find the answers to your questions, the people that can help you, and the tools that make it easier for you to do what you want to do. People who can’t seem to take that initiative and put their ego away will have a hard time finding themselves successful.”

In a country where many are told to hustle harder, prioritising emotional healing around money may seem like a luxury. But in reality, it is a necessity.

Money wounds left unattended fester into cycles of self-sabotage and financial stagnation.

The future of financial freedom, especially in a volatile economy, doesn’t lie in hustle culture alone; it lies in unlearning fear, rewriting money narratives, and building emotionally intelligent financial habits.

Healing your relationship with money might not change the economy, but it can change how you navigate it, with clarity, confidence, and peace.

Money trauma isn’t just about lack; it’s about the emotional wounds we carry from past financial distress.

These wounds shape how we see money, ourselves, and even our future. Whether it’s the child who witnessed constant arguments about money or the adult who lost everything to a failed investment, financial trauma lingers not just in our bank accounts but in our nervous systems. Healing from it is possible, but it requires honesty, structure, and self-compassion.

Healing is possible. It involves intentional reflection, compassionate action, and often, spiritual and therapeutic support. Here’s how to begin the journey.

Recognise the signs of financial trauma

The first step in healing from money trauma is awareness. Pay close attention to how you feel and behave around money. Do you constantly fear being broke, even when your account is not empty? Do you feel guilty every time you spend, even on necessities? Or maybe you avoid checking your bank balance entirely because it brings panic. Other signs include compulsive saving, financial secrecy, and emotional shutdowns during money discussions. These are not just bad habits; they may be trauma responses rooted in past financial hurt. Recognising these patterns with compassion is the foundation of healing.

Explore your money story

Everyone has a money story. It is shaped by early experiences, family dynamics, and societal messages. To heal, you must explore yours. What did you witness growing up? Was money a source of peace or pressure in your home? Were you taught that wealth equals worth or that money is evil? Write a “money autobiography” detailing your first memory of money, the emotions you associate with it, and any painful turning points. This self-inquiry helps bring subconscious patterns into the light, so you can begin to rewrite the narrative.

Reframe limiting beliefs

Many people unconsciously carry limiting beliefs such as “I’m bad with money”, “I’ll never have enough”, or “Rich people are selfish”. These beliefs can sabotage financial progress and keep you trapped in fear or shame. Start by identifying the beliefs you’ve internalised, then gently challenge them. Replace them with affirmations grounded in possibility and truth, like “I am learning to manage money wisely” or “I am worthy of financial peace.” Over time, and with repetition, your mind begins to internalise new, empowering scripts that support your healing and growth.

Practise financial mindfulness

Money decisions are often emotional, not logical. Practising mindfulness helps you become aware of the feelings and triggers behind your financial behaviours. Before making a purchase, take a moment to breathe. When a bill arrives, observe your body’s reaction. Do you feel dread, guilt, or avoidance? Journaling can help process these emotions. Grounding techniques like deep breathing, affirmations, or prayer can restore calm and clarity. Financial mindfulness also means noticing your progress, celebrating small wins, and being present with your choices. You’re not just managing money; you’re tending to your nervous system.

Create safety with structure

When you’ve experienced financial chaos, structure feels like safety. Setting up a simple, flexible budget isn’t just about controlling spending; it’s about creating peace of mind. Allocate money for essentials, savings, and even joy. Yes, joy. Having a line in your budget for rest, celebration, or self-care reminds your brain that money is not only for survival. Building even a modest emergency fund, no matter how small, can provide a sense of security and empowerment. The goal is not rigid perfection, but stability and calm.

Seek support and professional help

You don’t have to do this work alone. A financial therapist or trauma-informed counsellor can help you unpack the deeper roots of your money behaviours and rewire your emotional responses. In Nigeria and other African contexts, this support is emerging through platforms like MoneyAfrica, FinTribe, and community-led wellness groups. Group coaching, therapy circles, and faith-based financial workshops are increasingly recognising the emotional and spiritual components of money. Healing accelerates when you feel seen, understood, and supported in community.

Allow progress, not perfection

Healing from money trauma is not linear. Some days you’ll feel empowered; other days, you might overspend, shut down, or feel afraid. That’s okay. The goal isn’t to become a perfect money manager; it’s to respond with more awareness, grace, and self-compassion. Progress looks like checking your balance without anxiety, asking questions instead of avoiding, and choosing calm over chaos. Celebrate these small steps. Remember: you are not your past mistakes. You are a person in the process of healing, and that is sacred work.

Reclaim a spiritual view of money

Money trauma can cause spiritual disconnection, leading us to either idolise wealth or see it as evil. But from a spiritual lens, money is simply a tool. It is not your source; it is not your identity. Let this truth silence the panic that often clouds financial decision-making. Your value is not tied to your income.

Build a new relationship with money

Your relationship with money doesn’t have to mirror your past. You can build new memories and healthier habits that reflect peace, agency, and abundance. Start small: track your wins, celebrate your boundaries, give generously, and invest wisely. Treat money as a relationship, not a transaction. Be kind to yourself when you slip. Speak gently when reviewing your finances. Just like any healing relationship, it takes time, grace, and consistency. But it’s worth it, because you’re worth it.

Break the cycle for the next generation

Healing your money trauma isn’t just for you; it’s for those coming after you. By confronting your pain, restructuring your habits, and cultivating peace, you break generational cycles of fear, lack, and shame. You become a model of wisdom and wholeness. You teach your children that money is not a master but a servant. You show your community that healing is possible. Let your story be one of redemption, not perfection, but progress. The financial freedom you long for is not just in your future; it’s in your daily choice to heal.