It hardly bears repeating, but money is emotional!

No matter how hard we try, we inevitably move from scanning spreadsheets to stressing about security, survival, self-worth, and status. So when something goes wrong, a job loss, a business failure, a debt spiral, or a traumatic period of being “flat broke” — the impact isn’t just practical. It can be deeply personal.

Post-Traumatic Broke Syndrome, or PTBS, is a term gaining traction to describe the lingering psychological effects of financial trauma. Like other forms of trauma, it often lives beneath the surface, shaping behaviour long after the crisis is over.

Someone who’s experienced PTBS might have a stable income now, a healthy savings balance, or even a growing investment portfolio, and yet still feel anxious, panicked, or irrationally fearful about money.

This is because it’s not about logic. It’s about memory. Our nervous system remembers what it was like to feel completely exposed.

Post-traumatic broke syndrome doesn’t always look like reckless spending. More often, it shows up as:

- Hypervigilance: Constantly checking bank balances, rereading statements, or needing to feel “in control” of every cent.

- Avoidance: Procrastinating on financial admin, ignoring tax notices, or putting off investment decisions out of fear of getting it wrong.

- Guilt or shame: Feeling like a failure for past mistakes, even when they were circumstantial and outside of one’s control.

- Scarcity mindset: Struggling to enjoy money, even when there’s enough. Feeling like it could all disappear tomorrow.

It’s especially common in people who’ve been through systemic inequality, unstable employment, immigration, divorce, or a major health crises. The experience of not having enough — and not knowing what will happen next — can leave deep, emotional scars.

Acknowledging financial trauma doesn’t mean staying stuck in it. In fact, naming it can be the first step toward healing.

If you’ve felt this way, you’re not weak, irrational, or bad with money. You’re human. And your nervous system is doing what it’s designed to do… trying to protect you! But just like with any trauma, unprocessed fear can start running the show.

Financial planning can help, but not just in the traditional sense. It’s not about creating the “perfect” spreadsheet or chasing some ideal net worth. It’s about gently reintroducing a sense of safety. It’s about building a plan that honours where you’ve been, and helps you move forward with clarity, confidence, and support.

One of the most powerful things we can do as planners, partners, or friends is create space for these conversations. Not every financial wound is healed by a budget. Sometimes, what’s needed most is empathy, education, and a steady hand.

If this resonates with you or someone you care about, let’s talk. Not just about the money you have, but the story it’s telling, and the new one you’d like to write.

Because healing isn’t just possible. It’s powerful.

Disclaimer: If you recognise yourself in some of this, know that you’re not broken — you’re responding in very human ways to difficult experiences. If your anxiety or financial stress feels overwhelming or unshakable, it might be time to speak to a mental health professional. Healing — both emotional and financial — is possible, and you don’t have to walk it alone.