Factors Associated with Money Mismanagement Among Adults with Severe Mental Illness and Substance Abuse

Abstract

People with severe mental illness often have substantial problems with money mismanagement such as losing or lending money to other people and making impulsive or unnecessary purchases, including drugs and alcohol. Money mismanagement in turn affects patients’ health and social functioning, and can lead to homelessness and other harm. This cross-sectional study evaluated demographic and clinical predictors of money mismanagement among SSI/SSDI recipients. SSI/SSDI beneficiaries (N = 95) with recent cocaine use initiating a clinical trial were assessed at intake with demographic, cognitive, psychiatric, social/family, substance abuse, and financial measures. In multivariate regression analyses, psychiatric functioning and drug dependence diagnosis were independent predictors of self-reported money mismanagement. Even within individuals whom all had recently used cocaine, those with drug dependence and those with more psychiatric symptomatology had more difficulty managing their funds. Future studies might determine whether people who reduce their drug use and psychiatric symptomatology go on to better manage their funds.

Peer-supported economic empowerment: A financial wellness intervention framework for people with psychiatric disabilities.

“…Some studies may fail to contextualize the challenges individuals face in making sound financial decisions, by concluding or implying that their financial struggles are primarily due to a lack of financial capacity resulting from cognitive impairment or addiction (Marson, Savage, & Phillips, 2006; Moore, Black, & Rosen, 2015; Patterson, Goldman, McKibbin, Hughs, & Jeste, 2001; Rosen et al, 2002). In our opinion, any approach that fails to take into account a person’s socioeconomic context is likely to be insufficient or even harmful.…”

A Systematic Review of Health Outcomes Associated With Provision of Representative Payee Services

“…Eight of 18 studies assessed the effect of representative payee services on secondary outcomes (12,14,16,18,(33)(34)(35)(36).…”

“…Other outcomes. Another outcome examined was money mismanagement (12,34). Conrad et al (12) used a 22-item Money Mismanagement Measure to assess money management skill change over time (a lower score indicated better money management).…”

“…Post hoc analyses showed no difference in money mismanagement score change between the experimental groups with and without a representative payee; however, the experimental group with a representative payee had a 0.5-point lower score than the control group over the 12-month period (p=0.02). Moore et al (34) analyzed baseline data of 107 participants in a randomized trial assessing a money management intervention. At baseline, those receiving representative payee services were no different than those not receiving such services in terms of self-reported money mismanagement.…”

Financial Acumen Improves After Financial Literacy Training in Individuals With Substance Use Disorder

“…Financial literacy is an important life skill that may be affected by decreased cognitive processes or behavioral deficits that arise from SUD as the skills involved in managing finances can range from the very simple, such as counting money, to the complexity of online banking (Dreer et al, 2012). Individuals who are diagnosed with SUD may have poor financial literacy skills and therefore may have difficulty managing finances such as paying bills on time, or at all, saving, or budgeting money to live and setting financial goals for the future (Moore et al, 2016; Rosen et al, 2009). Using data gathered from 5,000 SUD clients, 78% of clients feel that money management skills are important to their recovery and are interested in developing financial skills (Jones-Sanpei & Nance, 2021).…”