DUBLIN — Researchers examining the relationship between financial behavior and mental health are relying heavily on self-reported surveys while making little use of actual banking and transaction data, according to a new study from University College Dublin.
The review, conducted by researchers from UCD’s School of Computer Science and School of Psychology and published in Frontiers in Public Health, examined 43 studies involving financial habits and mental illness.
Researchers said the findings reveal significant gaps in how the relationship between finances and mental health is studied.
Among the findings:
- Objective financial data is rarely used. Just four of the 43 studies analyzed financial records such as bank transaction histories or gambling data.
- Advanced technology remains uncommon. Fewer than 20% of the studies used machine learning or modern predictive modeling, with traditional statistical methods continuing to dominate.
- Research largely looks in one direction. Nearly 80% of studies examined how financial difficulties affect mental health, with far less attention paid to how mental health conditions can change financial behavior.
- Research focuses on a limited range of conditions. Depression was studied most frequently, followed by anxiety and general psychological distress.
Effects on Memories and Perception
Researchers said the reliance on self-reported information is significant because surveys depend on participants’ memory and perceptions, which can be affected during periods of depression, psychological distress or mania.
Anonymized, real-time financial information, by comparison, could allow researchers to identify actual behavioral changes, such as spending increases, missed payments or other sudden changes in financial activity.
Researchers said combining anonymized banking data with advanced analytics could eventually lead to new tools designed to help consumers protect their financial health during periods of mental illness.
Opening the Door
“Shifting toward objective measurement opens the door for the development of better digital tools,” said lead author Dara Adedeji, a doctoral candidate in UCD’s School of Computer Science. “In the future, banking apps could offer opt-in safeguards, tailored budgeting alerts or early-warning features designed to protect an individual’s financial security during periods of ill health.”
Study co-author Keith Gaynor, an associate professor in UCD’s School of Psychology, said real-time financial information also could have potential clinical applications.
“Understanding real-time financial behaviors can help clinicians and individuals recognize early warning signs of psychiatric distress or manic spending episodes, creating opportunities for proactive clinical discussions,” Gaynor said.
He said incorporating objective financial information into mental health research could help identify financial vulnerability earlier and allow for more targeted and timely interventions.
