Posted on 28-1-2003

Money Sickening For Many
John Carvel, The Guardian UK

If you feel sick when the bank statement arrives, or dizzy when a bill
drops through the letterbox, you are not alone in your suffering.

Researchers at Cambridge University have discovered a psychological
condition they are calling financial phobia, affecting more than 9 million
people in Britain. The sufferers are otherwise sane and well-adjusted, but
become seized with anxiety, guilt, or boredom when confronted with the need
to manage their money. They resort to avoidance techniques such as not
checking bank balances, and, in extreme cases, throwing away or filing
unopened statements to avoid dealing with personal finances.

Brendan Burchell, senior lecturer in social and political sciences, said
that financial phobia affected 20% of the population, and was particularly
prevalent among women and younger people. "Financial phobes can be
intelligent people who are high achievers in most areas of their lives," he
said. "They are not irresponsible, feckless, or spendthrifts. They get into
a psychological syndrome that makes it very difficult for them to deal
efficiently with their personal finances."

A poll of 1,000 adults found that a fifth experienced psychological and
physical symptoms that made victims incapable of consistent handling of
their financial affairs. Nearly half the sufferers experienced a racing
heart when faced with managing money, 15% felt immobilised, 12% ill. and
11% dizzy. More than half experienced apprehension, while 38% showed a
complete lack of interest in money matters. Although they were
dysfunctional in their financial behaviour, Dr Burchell found they were
otherwise well-adjusted in their personal relationships and careers. The
highest levels of financial phobia are among the 16-24 age group (30%), and
women (23% against 18% for men). Dr Burchell said that the onset of the
condition appeared to coincide with a financial upset outside the control
of the sufferer. Such upsets might include a decline in the value of life
savings, or becoming the victim of mis-selling of financial products. The
anxiety experienced by financial phobes was so great that 31% would prefer
to visit the dentist than sit down with a bank statement.