3 Signs You Had a Toxic Relationship With Money Last Year
Written by
Nicole Spector
Edited by
Cory Dudak
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Everyone — even the ultra-wealthy — is at risk of developing a toxic relationship with money. As with so many other relationship red flags, you may not even realize they’re there; or, you may be perfectly aware but feel like you can’t change the dynamic now that it’s become your way of life.
What are some of the key signs you were in a toxic relationship with money this past year, and how can you create healthier habits to navigate your finances in 2026? Financial experts shared their insights and tips for building a healthier connection with money.
1. You Partook in Social Media Trends That Can Promote Overspending
Most of us are aware social media is designed to make us spend as we scroll, but that’s not the only financial problem with these social networking platforms. Participating in extreme and temporary money challenges can also push you in the wrong direction.
Jeanine Skowronski, CEPF at Money As If, cited trendy TikTok movements like No Spend January and the $20 Grocery Challenge as examples of challenges that can warp your relationship with money.
“These are noble endeavors in theory, but, in actuality, they normalize and glorify conspicuous deprivation as a healthy money-saving strategy,” Skowronski said. “They also rarely work long-term. They’re essentially a fad diet. You risk spending all you saved and then some once the challenge is over.”
Instead of turning to a drastic social media test of financial endurance, stay focused on consistent, manageable money habits.
“You’re better served building smart budgeting habits over time, like regularly negotiating bills that have gotten way too high, canceling subscriptions you’re no longer using and setting up auto-save so some of each paycheck goes into a savings account,” Skowronski said.
2. You Were in Denial About Needing To Manage Your Money
If you’re anxious about taking action to manage your finances, you may fall into a trap of denial or believing that ignorance is bliss. If you’re not practicing habits such as routinely checking your banking and credit card accounts or letting bills pile up and pretending they’re not there, it’s a sign your relationship with money is strained.
“Denial makes the situation worse, creating stress and anxiety about money,” said Bobbi Rebell, CFP and personal finance expert at CardRates.com. “The best way to work through this is to take it easy by committing even 10 minutes a week to check in with your money related accounts. Usually the news is better than expected, and if not, at least facing reality can hopefully be a motivation to take action.”
3. You Spent To Cope
Constance McConnell, entrepreneur, financial coach at Money Minded Healing and social worker at Courageous Healing PC, explained how she sees people using spending as a coping mechanism, often related to things that don’t have anything to do with money.
“Many of my clients recognize that they spend to self-soothe, splurge to reward themselves, chase status to feel worthy or avoid finances altogether out of shame and scarcity fears,” she said. “These are signs that money is being used for emotional regulation rather than intentional decision-making.”
You can break this cycle by getting to the root of the feeling that compels you to spend so as to feel better. From there, working on keeping your feelings in check and not a factor in your spending habits is key.
“Healing your relationship with money starts with understanding the emotional drivers behind your habits, then creating structure,” McConnell said. She then advised to create “clear goals, values-based spending plans and systems that support behavior change while separating self-worth from net worth.”
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