Many people who are leaving prison and trying to adjust to life in reentry will encounter serious financial stress.
Whether it’s figuring out how to open a bank account, worries about earning enough money for food and rent, or not being able to save enough to put a down payment on a car or future housing, this financial stress, intensified by systemic barriers, can result in conditions like anxiety and a lack of ability to concentrate. And it can seriously affect one’s daily life and health.
But those in reentry are not alone. According to the 2024 Wellness Barometer Survey conducted by financial tech company Bright Plan:
- 91% of workers are stressed because of their finances.
- 39% are overwhelmed by financial stress.
- Only 18% have basic financial literacy.
- And 38% have either no emergency savings or just enough money to last for up to two months.
Financial trauma is an even greater problem
In spite of the fact that financial stress affects the majority of people, for those in reentry, it can develop into something even worse – financial trauma.
In a recent online seminar sponsored by Patelco Credit Union, a northern California-based financial institution, Jennifer Esperanza, vice president of organizational strategy at Coopera Consulting, explained how this trauma might play out in people’s behavior.
They may:
- Have constant difficulty focusing.
- Avoid responsibly dealing with money and financial issues.
- Seem to be annoyed, anxious, frustrated and irritable.
- Find it difficult to share their feelings.
- Have fears related to money.
These responses are not signs of irresponsibility or lack of motivation. They are often trauma responses rooted in past experiences with scarcity, instability or financial harm.
Employers can help by better understanding the problem
After laying out the problem, Esperanza offered some solutions. There are ways that executives and managers can help employees heal from whatever financial trauma and stress they may be facing. Here are the main ones she recommends:
- Reflect on your own life experiences concerning your attitude toward money.
- Be patient, and let people process their feelings about finances at their own pace.
- Acknowledge whatever experience they have had.
- Be empathetic and an active listener, giving your full attention to your employees when they discuss their feelings about money.
- Avoid criticism or judgment about financial situations.
- Offer access to resources that support healthier financial habits.
Viewing financial stress through a trauma-informed lens, rather than as a personal failure, allows employers and service providers to respond with empathy and practical support, improving mental health, job retention, and reentry success.
Once employers and nonprofits working with those in reentry become aware of clients who are suffering serious financial stress or trauma they can refer them to educational resources and assistance. In our next blog article, we’ll explore specific educational resources and support options available to people in reentry.
Editor’s note: If you’d like to know more about financial trauma, check out the recently published book, The Trauma of Money: Mapping Compassionate Pathways to Healing Financial Trauma and Disempowering Financial Shame, by Chantel Chapman.
