Mental wellbeing in focus amid cost-of-living pain

Posted on 12 Nov 2024

By Greg Thom, journalist, Institute of Community Directors Australia

Mental health advocacy body Beyond Blue has launched a new online tool designed to help Australians who are struggling with the cost-of-living crisis to manage the effects on their mental wellbeing.

Developed in cooperation with Financial Counselling Australia, the Money and Mental Health Quiz anonymously measures the financial wellbeing and mental health indicators of people in need of help.

Beyond Blue CEO Georgie Harman said the tool allows people to better understand where they sit on a financial and mental wellbeing scale and then directs them to resources such as the free 24/7 Beyond Blue support service or the National Debt Helpline.

“Money worries can take a major toll on our mental health, and declining mental health can make it harder to manage our finances,” Harman said.

“It creates a downward spiral that can be difficult to break out of without support.”

Mental health experts believe financial pressure and mental health issues are two sides of the coin, with one exacerbating the other.

Financial stress can lead to anxiety and depression, which in turn can worsen efforts to manage personal finances, trapping victims in a downward spiral of debt and mental fatigue.

Graphic showing cyclical relationship between financial wellbeing and mental health — The cyclical relationship between financial wellbeing and mental health.

A recent survey conducted by Beyond Blue found financial pressure was the leading cause of distress for almost half (46%) of respondents.

The study also revealed:

more women (51%) than men reported higher than average distress from financial pressure

36% of people surveyed said they were only just breaking even most weeks

11% of people surveyed said they spent more money than they received

65% of Australians aged between 25-34 reported the highest level of distress caused by financial pressure.

“Money worries can take a major toll on our mental health, and declining mental health can make it harder to manage our finances."

Beyond Blue CEO Georgie Harman.

Beyond Blue snip — The Money and Mental Health Quiz allows people to better understand where they sit on a financial and mental wellbeing scale before directing them to the help they need.

The statistics lend weight to a study by the MoneySmart consumer advice division of the Australian Securities and Investments Commission (ASIC) released in June, which found that 47% of Australian adults in debt – an estimated 5.8 million people – hade struggled to make repayments over the previous year.

The research findings prompted ASIC to launch a public campaign called Just Ask! aimed at encouraging those drowning in debt to seek help, particularly from their bank.

Georgie Harman Beyond Blue CEO — Beyond Blue CEO Georgie Harman.

The not-for-profit and charity sector has played a leading role in highlighting the plight of Australians struggling in financial hardship.

Initiatives range from an ambitious fundraising campaign by food relief agency SecondBite aimed at providing a million meals for hungry Australians, to Anglicare’s cost-of-living index which revealed that welfare recipients in Australia can’t afford essentials such as food, rent and transport.

In this year’s federal budget, the Albanese government announced more than $4.7 million over three years from 2025–26 to fund a range of financial help programs, such as the National Debt Helpline (NDH).

Beyond Blue's Georgie Harman said many people experienced increased financial stress in the run up to Christmas, resulting in behaviour such as avoiding opening bills, answering the phone, or connecting with others.

“While avoidance might make you feel better temporarily, it won’t help address the underlying issue, which can build up the more you avoid it,” said Harmon.

“Unfortunately, this issue is not going away, and it brings with it a lot of shame and stigma.

“We hope this tool will help those who are just getting by, or really struggling, feel like they are not alone and encourage them to reach out for support well before they hit crisis point.”