Can you Have Financial Trauma?
Recently, I spoke with my Platform Launchers group about 1) teaching a graduate class on Trauma, and 2) how I couldn’t think of a topic to write about on my blog.
There was an immediate outpouring of “You should write about Financial Trauma!” When I gave a skeptical look to the group, one friend replied with the financial lessons and fears that she inherited from her family.
My skepticism melted away. “Ok,” I thought. “Let’s look into this.”
So, I decided to research a little about Financial Trauma and see where these two topics merge — and also where they don’t meet up.
What is Trauma?
Let’s first define Trauma.
Actual psychological trauma is defined in the DSM-5, which is where we therapists base our diagnoses. Trauma, better defined as Post Traumatic Stress Disorder has criteria that must be met to be diagnosed:
Exposure to threatened death, serious injury or intimate violence (i.e., the Traumatic Event, or TE) plus:
Presence of one or more intrusive symptoms such as: intrusive distressing memories, recurrent distressing dreams, flashbacks or loss of awareness, distress at external cues (triggers).
Persistent avoidance to stimuli associated with the TE (avoidance of the memories; avoidance of external reminders)
Negative alterations in mood, such as: Inability to remember aspects of the TE; distorted thoughts about the cause or consequences of the TE leading to self-blame; Persistent and negative beliefs about the world or self (i.e., I am bad; the world is completely dangerous); Persistent negative emotional state (fear, horror, anger, guilt, shame); Persistent negative emotional state (e.g., fear, horror, anger, guilt, or shame);Markedly diminished interest or participation in significant activities; Feelings of detachment or estrangement from others; Persistent inability to experience positive emotions (e.g., inability to experience happiness, satisfaction, or loving feelings).
Marked alterations in arousal and reactivity regarding the TE: Irritation, anger, recklessness, hyper-vigilance, easily startled, problems with concentration, sleep disturbance.
So where can we look at the criteria for trauma and integrate the financial aspect?
To be honest, it's uncommon for financial situations to expose us to life-threatening danger (death), severe injury, or intimate violence (mafia violence and human trafficking come to mind). While such cases can and do happen, they are rare and not usually what people mean when they describe themselves as financially traumatized.
And, as a practicing therapist and a professor in the university system, I’m very careful with the use of the word ‘trauma.’ After being overused for the last 5-10 years, the profession is seeing the need to protect the definition for those people who have experienced a catastrophic event and are need professional support and help.
What do we mean when we talk about financial trauma?
I think it’s fair to say that most people, when they say ‘trauma,’ they mean significant harm or distress. Some have called this experience a “little ‘t’ trauma.” And specifically, when we talk about financial trauma, some may, like my friend, discuss the overwhelming crises or circumstances, or their family’s unhealthy financial beliefs and behaviors.
So what could occur if we have severe adverse financial experiences? What deleterious lessons might be learned and impressed on us that arise throughout our lives? How might the experiences described by PTSD criteria unfold in a person’s financial life? And what do you do? What lessons and healing can we experience from treatments for PTSD?
Over the next few weeks, we’ll dissect the parts of Trauma/PTSD that can apply to severe financial distress.
The World Shatters
Darby Strickland is one of the most thoughtful insightful experts on abuse and trauma I’ve read. She says this about Trauma:
“Trauma changes the way that people think about the world, other people, and God. It’s important to gently, carefully, and tenderly help them see God accurately… Inviting people to see Jesus and his care for them, I think that’s what’s going to heal and impact their hearts the most.”
Let’s apply Darby’s quote to our view of money: How could a dire financial situation change the way someone, or you, might think about the world, other people, or God?
Some possible examples:
Parents who choose substance use (drugs or alcohol) over providing sustenance and housing for their children
You lose your job and must move repeatedly to worsening living conditions
Facing overwhelming debt, resulting in mounting anxiety and fear, causing arguments with your spouse or partner
Your parent or spouse has a gambling addiction, and you’re overwhelmed with fear because of impending bills.
Facing foreclosure, feeling as though God and others have abandoned you.
When studying PTSD, researchers often highlight that each person’s resources and internal resiliency influences the how trauma symptoms manifest in the person experiencing a potentially traumatic event.
This is an important point, when thinking about financial harm, as well. The fewer resources a person has when facing crises and emergencies often result in the person experiencing more intense emotional responses. The emotional responses can range, depending on each person. A person can experience anxiety, fear, depression, anger, irritation, etc., which then impact their decisions and behavior.
Where do we go from here?
I’ve only scratched the surface of what trauma is and how it impacts a person. Next time, we’ll continue discussing the impact of trauma, especially in our bodies. Does the Body really Keep The Score? Does it keep the financial score?
That’s next time.
Do you wonder if you have financial trauma? Contact me here. I’d love to help.
