“Bag Lady Syndrome is a fear of running out of money and ending up financially destitute,” Lindsay Bryan-Podvin, a financial therapist and licensed master social worker with Cash App, told HuffPost.
It tends to be a deep-seated anxiety around not being able to support your lifestyle as you get older. Bag Lady Syndrome is often irrational and unrelated to one’s actual financial standing.
“Even when someone is doing OK on paper, there’s this constant worry of things all falling apart,” said Bola Sokunbi, the founder of the personal finance platform Clever Girl Finance. “I’ve found that oftentimes [it’s] less about the actual money and more about fear, safety and wanting control.”
She noted that many people with this mindset maintain a tight grip on their money and feel guilty about spending, even on things they can easily afford.
“Money starts to feel stressful instead of supportive toward their goals, and emotionally it can lead to anxiety, burnout and never feeling like you have enough,” Sokunbi said.
Bag Lady Syndrome can also lead people to keep too much money in cash or avoid investing altogether, giving up on the longer-term benefits.
“Being overly conservative financially can get to the point where it becomes ‘penny-wise, pound-foolish,” Bryan-Podvin said. “For example, driving across town to get gas that is $0.05 cheaper without considering the fuel needed to get to and from the so-called ‘cheaper’ gas station.”
She noted that those with Bag Lady Syndrome might also hoard multiples or duplicates of things “just in case.” They might also struggle to “not use” an item if they spent money on it ― even if they don’t like or need to use it.
“Emotional consequences include anxiety, fear and helplessness,” Bryan-Podvin said. “I see a lot of hypervigilance, which looks like imagining the worst-case scenario about the future, constantly rechecking income and expenses, or looking for news that confirms their fears about financial threats.”
She also pointed to the risk of community isolation, as people with Bag Lady Syndrome often withdraw from social events that involve spending money. And rather than suggesting alternate ways to socialize, they tend to simply say ‘no’ and ultimately stop getting invited to places. Over time, these effects can compound, impacting mental health and personal relationships.
“This isn’t just about money ― it’s about emotional security,” said Cathleen Bell, vice president of customer research and insights with National Debt Relief. “Many people carry the burden of financial trauma, whether from divorce, caregiving, job loss, growing up in a financially unstable household or even the last few years of rising cost of living for many Americans.”
That history can foster persistent anxiety in the form of Bag Lady Syndrome. As the name suggests, this condition tends to occur in women.
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