Quote:
Originally Posted by link
Fretting about financial issues uses up valuable brainpower and limits your decision-making ability, raising the risk of mistakes which lead to more debt.
In contrast those with fewer concerns about money have more "mental bandwith" available to focus on getting matters like education, training and time management right.
The "cognitive deficit" suffered by someone with financial problems can be the equivalent of a 13-point loss in IQ or the loss of an entire night's sleep, researchers claimed.
Studies had previously found that people with more finanial problems tended to be worse at some cognitive tasks, wuch as making decisions about money, but the cause and effect of the link were unclear.
Researchers from Harvard University conducted two studies in the USA and India to examine what effect poverty had on people's thinking ability. They published their results in the Science journal.
rest of the article: Financial worries lower thinking ability - Telegraph |
I know it does, I've lived through it. My past financial indiscretions are well documented here, stay-at-home wife (our choice) and 4 kids got us into a financial hole that it took us nearly 10 years to get out of. I know the stresses and emotional drain of shuffling bills around, decided which ones we'd pay late so we could pay the mortgage. I know it adversely affected my work.
We got ourselves into that position via choice (I think we made the right decision but don't know that I would recommend it), I can only imagine if someone has no control over it.