Almost a quarter of young people suffer from their family’s debt

The study, based on university research and previous studies by the British NGO The Children’s Society, sought to answer whether there is a connection between children’s mental health and their family’s poor financial situation and debt. It was found that in low-income families where loan repayments are also hampered, the rate of children’s psychological problems can reach 23 percent. In families where there is debt but repayments are not hampered, this rate is 14 percent. If a family’s finances are in order, only five percent of children experience such difficulties.

According to the researchers’ definition, those struggling with mental health problems:

• lose motivation, feel like they can’t handle money, can’t make ends meet, can’t pay their bills,
• often spend money on impulse purchases and make rash decisions,
• have difficulty coping with school or work,
• may experience a drop in income, while they have to deal with extra expenses, such as money spent on therapy.
• The debt of families is directly proportional to the psychological damage of children

According to the aforementioned research, there is a clear correlation between the debt of low-income families and the mental damage of children.

Financial insecurity not only affects parents – causing physical and mental symptoms – but also children, who feel embarrassed because they cannot afford the things their schoolmates can afford due to lack of money. More serious social integration problems occur when they are no longer able to properly integrate with their peers. Children may also feel guilty about not being able to help their parents solve their problems. This can lead to self-esteem problems. Another problem is that a financial crisis can lead to conflicts within the family, lead to loneliness, and make normal everyday life impossible.