The Weight of Finances on the Emotional Well-being of Portuguese People

Financial anxiety has become a growing concern among Portuguese people. With the rising cost of living, salaries not keeping pace with inflation, and economic uncertainties, many people enter a cycle of constant worry about their finances.

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This phenomenon affects people of all ages, but it is especially intense among young people and university students. This feeling can manifest in various ways, mainly through insomnia, the constant fear of not being able to pay bills, or avoiding dealing with the budget. In Portugal, where salaries often do not cover basic expenses such as housing, food, and transport, the situation is even worse.

According to the study "Financial Well-being in Portugal: A Behavioral Perspective", carried out by Doutor Finanças in partnership with Laicos - Behavioural Change and institutions such as the Faculty of Psychology of the University of Lisbon and NOVA IMS, half of the population feels anxious when thinking about their personal finances. Furthermore, 22% of respondents state that this concern harms professional performance, affecting their success.

More than half of the population is dissatisfied with their financial life and 25% face difficulties paying bills. These data reflect the financial pressure many families face in Portugal. The study also highlighted low financial literacy as an aggravating factor, as many Portuguese do not have the necessary knowledge to manage their finances effectively.

Another equally alarming fact reveals that 18% of Portuguese people avoid even thinking about their personal finances, possibly out of fear of facing the situation or not knowing how to deal with it. 23% of respondents feel guilty when reflecting on the state of their finances, highlighting the strong emotional impact of this topic.

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Among the causes of financial anxiety in Portugal are high rents, accumulated debts, and economic uncertainty. The increase in interest rates in recent years, especially Euribor, had a direct negative impact on housing costs, representing a significant part of the family budget and worsening the situation for many Portuguese.

This anxiety is particularly evident among young people. Factors such as rising rental prices, difficulty entering the job market, and high education costs create scenarios of uncertainty. University students often need to balance studies and part-time jobs to cover expenses, which can lead to physical and mental exhaustion. Furthermore, the pressure on families, especially those with lower incomes, makes the situation even more difficult.

Despite the challenges, there are several solutions to address financial anxiety. Financial literacy is essential for better personal finance management. Greater financial control and a reduced feeling of disorganization can be achieved, for example, through courses, workshops, financial applications, and monthly budget planning. Additionally, psychological support is fundamental to dealing with the emotional impact of financial difficulties. Programs such as the Psychologist Voucher, offered by the Government for higher education students, are an accessible way to obtain support.

Financial anxiety is not insurmountable. With education, planning, and adequate support, it is possible to achieve greater financial and emotional tranquility. Society must continue to promote financial literacy and the Government must implement public policies that help citizens overcome these challenges and create a more stable and less anxious future.

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Author: Eduardo Beltrão - Business Developer nBanks

Image credits: Unsplash