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Financial trauma refers to problematic ways you emotionally react to money, cognitively processes about in your thinking and language, how you behavior with money, and the somatic symptoms that manifest when there is financial gain, loss or distress. Experiences of poverty, loss of physiological needs, and threats to one's safety needs will rewire the brain with a response of fight, flight, freeze, or fawn. These responses will create a negative feedback loop of reward and guilt, inhibiting healthy engagement of finances.
By Terrell & Taneisha PughFinancial trauma refers to problematic ways you emotionally react to money, cognitively processes about in your thinking and language, how you behavior with money, and the somatic symptoms that manifest when there is financial gain, loss or distress. Experiences of poverty, loss of physiological needs, and threats to one's safety needs will rewire the brain with a response of fight, flight, freeze, or fawn. These responses will create a negative feedback loop of reward and guilt, inhibiting healthy engagement of finances.