Do you get a sense of dread or your heart starts to race when checking your bank account? Maybe feel guilt when you look at where you have spent your money. Maybe you avoid looking at your finances all together. It can show up as the panic you feel after a bill notification. This financial anxiety stems from financial trauma. And for many BIPOC and first-gen communities, financial trauma is not just about one bad money decision. It is often tied to family survival, systemic barriers, cultural expectations, and the pressure to “figure it out” without a map.
In this blog post, financial therapist, author, and speaker Rahkim Sabree breaks down how financial trauma shapes the way we think, feel, and behave with money. His work focuses on financial empowerment, financial trauma, and culturally aware money healing.
Rahkim breaks down how to identify money anxiety, confront limiting beliefs, and start your financial healing journey. He offers a blueprint to reclaim your financial power, align your goals with your values, and build intergenerational wealth with intention. You’ll learn why financial self-awareness, intergenerational conversations, and accountability are key to breaking toxic money cycles—for good.
What is Financial Trauma?
In his book Overcoming Financial Trauma, Rahkim Sabree defines it as “any instance observed or experienced that has a negative impact on the way you view, interact with or believe about money.” This can be watching your parents struggle to pay bills, lose a job or rack up a large debt. It can even be the money advice we receive as children. For example, staying away from debt or living frugally.
Financial trauma can turn into money anxiety, avoidance, shame, overworking, or perfectionism. Many of us still deal with this even when we achieve a high salary job. Your finances may be stable but it may still rise up when an unexpected expense pops up. The money wounds run deep. Your nervous system remembers. Til this day, I can have financial anxiety rise up.
Additionally, Rahkim shares how broader issues like capitalism make these stresses worse. This trauma can manifest itself as fear and resistance toward addressing anything that has to do with finances. Someone may avoid a financial problem rather than tackling it head on. It can trigger an anxiety that relates to money called financial anxiety.
Why BIPOC communities feel money wounds differently
For BIPOC communities, financial trauma is often layered. It isn’t just one single incident. It comes from several directions. Rahkim points to the impact of systemic racism, economic marginalization, capitalism.
The Federal Reserve’s 2025 report found that financial well-being still differs across racial and ethnic groups; in 2024, 63% of Hispanic adults and 65% of Black adults reported doing okay financially or living comfortably, compared with 77% of White adults. Additionally, many faced hardships ranging from not being able to fully pay bills on time to skipping medical care due to cost.
Hispanic/Latino Economic Hardship U.S. Households in 2025
| Characteristics | Percent |
|---|---|
| Did not pay all bills in full in prior month | 25 (Table 19) |
| Sometimes or often did not have enough to eat in the prior month | 13 (Table 21) |
| Had a major unexpected expense in the prior 12 months | 58 (Table 24) |
This gap matters because money stress is not just numbers. A National Library of Medicine Research has also linked financial worries with psychological distress among U.S. adults.
So when someone says, “Just invest,” “just save,” or “just stop spending,” they are missing the whole chisme. Financial healing requires more than math. It requires safety, education, and compassion.
Social Effects on Financial Trauma
Systemic racism, economic marginalization, and capitalism create deep money wounds that don’t just hurt our wallets—they shape our entire mindset around wealth, survival, and self-worth. It’s the stress of being first-generation. The stress of having to figure out our finances on our own.
Additionally, disparities in financial education and wealth gaps, along with cultural differences, shape how communities handle money. Historical and intergenerational trauma heavily influence today’s financial behaviors, especially in marginalized communities. Rahkim explains how financial stress and anxiety are often tied to systemic challenges, particularly for BIPOC communities. Systemic racism and marginalization create unique obstacles that traditional financial education often misses.
The sandwich generation and cultural pressure
Many first-gen Latinas and BIPOC wealth builders are not just building for themselves. Our parents immigrated and did not understand low income. We are the generation that is going to school, getting a high salary job. We are the bridge in between We are working towards financial security and retirement for ourselves, our parents and ensuring the future generation is set up for financial success.
Rahkim talks about how the sandwich generation, those supporting aging parents while also raising kids or planning their own future, can carry extra financial anxiety. In many communities of color, money is communal. That can be beautiful, but also heavy. Navigating the individualistic American culture and the collective culture can leave you confused.
Aligning financial goals with personal values can cause some disconnect as well. Childhood financial experiences often shape adult financial behavior. Many people carry a scarcity mindset from their upbringing into adulthood, even if their financial situation has improved. Cultural influences can push people into certain career paths, even when they’re not passionate about them. Generational expectations often dictate career choices and financial stability within communities. (Does this sound familiar?)
You may want to build generational wealth, but you may also feel guilty for setting boundaries. You may want to buy a house, invest in real estate, or start a business, but still hear that little voice saying, “Who do you think you are?”
Overcoming Your Money Wounds
Recognizing and dealing with financial anxiety and financial trauma is key for financial well-being. Rahkim advises taking a clear look at your current finances and past decisions without shame. This self-awareness and accountability are crucial for making smart financial plans. He dives into the importance of aligning your financial goals with your personal values, offering tips to break the cycle of financial trauma.
He uses the metaphor of a wounded runner to highlight the importance of healing before moving forward. He stresses the need to face these financial wounds and navigate around them, rather than ignore them. He wants to inspire listeners to rethink their money habits and embrace generational healing. Continuous learning and adapting in financial education are essential for addressing financial trauma.
For more on how to overcome your money wounds, check out his book!
FAQ
What is financial trauma?
Financial trauma is the emotional impact of painful money experiences that affect how you think, feel, and act with money.
Is money anxiety normal?
Yes. Money anxiety is common, especially if you grew up around scarcity, instability, debt shame, or financial stress.
Can financial trauma affect investing?
Absolutely. It can make you avoid decisions, fear debt, distrust opportunities, or feel guilty for wanting wealth.
How do I start healing financial trauma?
Start with awareness. Notice your triggers, review your money without shame, and get education that feels safe and culturally relevant.
Who is Rahkim Sabree?
Rahkim is a financial therapist, author/columnist and speaker, who focuses on the intersection of financial education and financial trauma as a barrier to achieving financial empowerment. His early experiences with poverty on his relationship with money and, the nuances of financial trauma, culture, and race and their impact on the wealth gap in the Black community.
Instagram: RahkimSabree
