Effects of a mental health intervention on financial well-being

Abstract

Financial well-being and perceived stress contribute reciprocally to each other, as well as significantly influencing overall personal well-being. Financial difficulties can exacerbate mental health problems, which in turn can worsen financial state, creating a vicious cycle. It has been shown that evidence-based, low-intensity interventions can independently improve both financial and psychological well being. However, targeting both constructs simultaneously has not yet been explored. The aim of this thesis was to investigate whether short-term use of mindfulness-based mental health app could improve both financial wellbeing and perceived stress. I conducted a randomised controlled trial among working adults aged 25–55 in Estonia. Participants in the experimental group (n=68) used a free trial of the Headspace mindfulness app for 10 consecutive days, whereas the control group (n=100) listened to the TED Talks addressing general mental health topics. Financial wellbeing and Perceived Stress Scale scores were assessed pre-intervention, immediately postintervention, and 30 days after the intervention. Participants in both groups showed statistically significant improvements in financial well-being and perceived stress over time, with no between-group differences. This study is the first to demonstrate promising outcomes from a short-term low-intensity intervention targeting both financial and psychological well-being concurrently, suggesting that equipping individuals with accessible mental health self-help tools could help disrupt the vicious cycle of financial stress and mental health deterioration.