Almost everyone has adverse childhood experiences (ACEs) of some kind. However, for some, these adverse experiences are severe enough to leave a mark that lasts decades.
Unfortunately, many ACEs come with unexpected financial costs. Families that experience trauma or distress may be hit with unaffordable healthcare costs and typically require extra support from medical professionals and therapists.
Many who experience difficulties early in life have difficulty with money and may enter a negative cycle of poverty, financial instability, job loss, and failure. Overcoming these struggles requires a coordinated approach from families, financial institutions, and healthcare providers.
Financial Burden of ACE
Adverse experiences in childhood can cause lasting damage that extends beyond psychological distress. Folks who experience ACE may develop illnesses like cardiovascular disease, diabetes, and conditions related to adverse weight gain.
In California alone, PLOS One researchers estimate that the annual cost of ACE-related illnesses is around $113 billion. Further ACEs-related research by Mark Bellis, director of the World Health Organization Collaborating Center on Investment for Health and Well-being, confirms that ACE comes with “huge financial cost” at the level of the individual and to society as a whole.
Plos One researchers also found that folks with an ACE score above 4 and accounted for “36 % of health care related costs in California.” This points to a larger, cyclical issue wherein the most vulnerable in society are put at the greatest risk of financial burdens and hefty medical bills.
Lifestyle Costs
Beyond a financial cost, people with ACEs inevitably have to pay for their trauma in more ways than one for years to come. Recent research published in The Lancet Public Health journal indicated that folks who experience ACEs are more likely to make lifestyle choices that inevitably undermine long-term health and well-being. These choices range from smoking, harmful alcohol use, illicit drug addiction, and poor weight management.
Although these choices may seem like a temporary coping mechanism, they can also be connected to additional mental health conditions like depression and anxiety. This is particularly common in communities where people are largely trauma unaware. Without a clear understanding of ACEs, individuals are less likely to find the kind of support they need and will continue to practice unhealthy coping mechanisms that risk their longevity and lifelong well-being.
Widespread misunderstanding about ACEs can turn people away from medical care, too. Folks who have low financial and medical literacy are unlikely to seek care if bills add a burden to the ACE trauma they are already navigating. Instead, folks need to be able to explore other, cost-free ways to get the support and therapy they need.
Paying for Therapy
In the US, most patients learn about their therapist through insurance networks. Insurance plans funnel people toward certain providers and helps folks find a professional that aligns with their goals and values.
Insurance isn’t as cheery as it sounds though, especially in the United States. Insurance providers limit the amount of choice that patients and therapists have. Patients simply can’t book appointments with some therapists if their insurance provider doesn’t sign off on them, and therapists have to stick with pre-established modalities — even if the patient needs a new approach.
Rather than leaning on insurance-approved providers, some folks who have experienced ACEs may benefit from searching beyond the pre-approved selection and utilizing alternative therapy payment plans. Folks who are looking for therapists can retain their financial freedom by enrolling in healthcare plans that require a monthly membership fee.
Alternatively, folks who have experienced ACEs can seek the services of “pay what you can” therapists. Therapists set their rates as usual but allow folks to dip significantly below the standard rate if they are unable to raise the money for treatment. These plans are largely reliant on goodwill but can be a great way to connect with therapists that truly care.
Education and Money Management
Folks who experience ACEs are at more than double the risk of having no educational qualifications compared to the general population. Those who fail to complete secondary education are also at a far higher risk of unemployment.
This education gap grows exceedingly wide every year, and more needs to be done to ensure that all children are given access to the educational experience they need. However, the intergenerational cycle of poor educational attainment can be broken if parents can mitigate parental stress and build resilience.
Parents and educators can pass the core tenets of effective money management to children who have been affected by ACE. Even small changes — like building a healthy emergency fund — can make a big difference to children’s mental well-being and financial literacy.
Single parents can improve the financial position of their ACE-affected family by sticking to the 50/20/30 rule when budgeting and saving. The 50/20/30 rule means that 50% of income is put aside for fixed costs like rent and utilities, while 20% is put towards discretionary spending (eating out, subscriptions, entertainment costs). Ideally, the remaining 30% will be dedicated to paying off debt and saving for the future. This can improve ACE-affected children’s financial literacy and help families become more financially resilient.
Conclusion
Unfortunately, trauma comes with a hefty price tag. Families can navigate the financial costs of ACE by reaching out to therapists who offer “pay what you can schemes” and education institutions that support financial literacy. This can help folks stay out of debt while receiving the proper support and care.
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