Four ways financial security impacts mental and physical health

GUEST BLOG: This article was written by United Way volunteer writer Victoria Fajenyo, a public health professional and research coordinator with expertise in research methodologies. Committed to community empowerment, Victoria has coordinated mentorship programs for Black youth, fostering leadership and cultural identity. Her career reflects her dedication to advancing health equity through research, advocacy, and collaboration, driving meaningful change in public health policies and practices.

Financial stability, mental health, and physical well-being are deeply connected, with challenges in one area often affecting the others.

Financial insecurity is a leading cause of stress, contributing to mental health struggles such as anxiety and depression, which can also worsen physical health conditions. Barriers to healthcare access, relationship difficulties, and food insecurity further intensify these issues, creating a cycle that is difficult to break.

United Way of the Alberta Capital Region helps address these interconnected challenges through our initiatives, programs, and funding, including financial empowerment programs, improving access to mental health support, employment programs, and more.

By encouraging holistic systemic changes that recognize the connection between health and finances, we can help build stronger, more vibrant communities that promote long-term well-being.

Stress significantly impacts mental and physical health, often creating a self-perpetuating cycle. Financial strains are a major driver, closely linked to anxiety, depression, and overall mental distress (CIHI, 2025).

Chronic financial stress, triggered by unemployment, debt, or insufficient savings, activates prolonged cortisol release, contributing to issues like high blood pressure, cardiovascular problems, and weakened immunity. The World Health Organization (2024) reports that social determinants of health, such as income and housing, have a larger impact on a person’s health outcomes than lifestyle factors. Poor health can also reduce work productivity, exacerbating financial instability, while medical expenses compound the strain.

United Way’s Each One, Teach One program directly addresses the root causes of financial stress by equipping individuals with practical skills to manage their finances. Through free workshops on budgeting, saving, and credit management, participants gain confidence and reduce the anxiety caused by financial uncertainty.

United Way partners with volunteer bankers, financial literacy experts, and community organizations to deliver these life-changing workshops, empowering individuals to break the cycle of stress and financial instability. By helping individuals take charge of their financial situations, the program creates a ripple effect that improves overall mental and physical health.

Financial constraints significantly limit access to essential healthcare services, worsening both mental and physical health. While the Canada Health Act provides universal coverage for hospital and physician services, critical needs such as prescription medications, dental care, and mental health services are often excluded. Without private insurance or sufficient funds, individuals face high out-of-pocket costs, leading many to delay or skip necessary treatments, exacerbating untreated conditions.

The Canadian Institute for Health Information highlights that financial barriers frequently block access to , which are not fully covered by public insurance. Additionally, issues such as high costs, lack of awareness, long wait times, and insufficient funding further restrict access (Moroz et al., 2020).

While United Way doesn’t fund health care services, the positive ripple effects of many of our programs or funded agency work do improve physical health. For instance, United Way funding towards job training programs could mean that people who are unemployed or underemployed can find better paying jobs with better health benefits.

As well, United Way-funded agencies Sage Seniors Association and Jewish Family Services participate in the Edmonton Seniors 55+ Social Prescribing Project, which bridges the healthcare system and community-based senior serving organizations, connecting seniors to a range of supports from social engagement to help with transportation or meals.

Financial stress reduces communication between partners, eroding trust and intimacy and often leading to conflict and emotional disconnection. It can also strain relationships with peers and colleagues, fostering isolation, envy, and workplace tension. Financial hardship may cause individuals to avoid social events due to embarrassment, weakening social and professional networks. Disparities in pay and benefits can heighten jealousy and competition, worsening relational stress.

These dynamics create a cycle where financial difficulties amplify tensions, further increasing stress. Open communication, empathy, and support are key to sustaining healthy relationships and mitigating financial challenges.

United Way focuses on programs that address the root causes of financial stress. Empower U can help equip individuals with tools to manage their finances and foster open, productive conversations within households. These programs also build confidence and reduce the relational strain caused by financial challenges.

Food insecurity significantly impacts mental and physical health. Physically, it increases risks of malnutrition, obesity, and chronic diseases like heart disease. The Canadian Community Health Survey links food insecurity to higher rates of chronic conditions and poorer health outcomes. Reliance on low-cost, unhealthy food options worsens nutrient deficiencies, impairing well-being. Mentally, food insecurity is tied to higher levels of stress, anxiety, and depression, as constant worry over meals heightens psychological distress.

United Way, in collaboration with food banks, local agencies, and community stakeholders, ensures that no one in the Alberta Capital Region has to choose between feeding their family and meeting other essential needs. United Way’s collaborative approach includes funding food assistance programs that integrate financial education or cooking skills, such as Alberta Parenting for the Future Association and Fort Saskatchewan Families First Society.

For children, the effects extend to cognitive development, emotional regulation, and academic performance, with long-term consequences. Addressing food insecurity requires improved access to nutritious food, mental health support, and comprehensive policies like enhanced social safety nets and targeted food assistance programs to break this cycle.

United Way’s All in for Youth collaborative provides wraparound supports for students at eight local schools, including providing healthy meals and snacks. Funded front-line agency partners like e4C and Leduc & District Food Bank also support local students by providing a variety of breakfast, snacks, and lunch programs.

Financial security plays a crucial role in shaping both mental and physical health. When individuals face financial instability, they experience heightened stress, limited access to healthcare, strained relationships, and food insecurity — all of which negatively impact overall well-being.

Programs that promote financial literacy and economic empowerment, such as those offered by United Way, help individuals break the cycle of financial hardship, reduce stress, and improve quality of life. By investing in financial stability, we can build stronger, healthier communities where people do not have to choose between economic survival and their well-being.