How I Healed Generational Money Wounds After Paying Off Thousands in Debt

Did you grow up in a home where money wasn’t discussed, but the stress of it was always felt? Or maybe it was talked about, but you only heard the negativity?

Growing up, I felt very grateful for what I had. My parents didn’t graduate from college, but they were hard workers and were able to secure stable jobs. I didn’t grow up thinking much about money, and that, I now realize, was a privilege. Unfortunately, everything changed during the Great Recession of 2007–2009. My mom, the primary breadwinner of our family, lost her job of 25 years with no financial safety net. Just like that, our dual-income household became a single-income one. My dad did his best, but the shift was stark. Watching my mom struggle to find work and eventually fall into depression, shook me in ways I didn’t fully understand at the time. I went from never hearing about money, to suddenly have it take over my life.

Here is what I did understand and internalize:

1. Money can disappear in an instant.
2. Abundance wasn’t meant for us.
3. No matter how hard you work, it’ll never feel like enough.

Naturally, I carried those beliefs into adulthood. I did what everyone warned me not to do: I got into debt. I maxed out my credit cards. I took out a $20,000 car loan. And student loans? $55,000. Even with a job after grad school, I was living paycheck to paycheck while drowning in bills and shame. Then the pandemic hit, and the weight of it all felt unbearable.

But something shifted in 2021. I was working from home, exhausted by my circumstances, and finally said: Enough. I realized that I wasn’t just tired of being broke, I was tired of being afraid of money. I decided that year to face my debt head-on. And more importantly, to heal my relationship with money. After two years, three jobs at a time, and lots of therapy, I finally paid off my debt (except for my student loans).

The Cultural Connection Between Money and Mental Health

Let’s be real here. Healing our money wounds as Latines isn’t just about budgeting or saving. It’s about unlearning generational narratives.

We are often told to chase success, to work twice as hard, to make money, but also to never to talk about it. And if we do have it? We often carry guilt. We fear judgment. “¿Qué va a decir la gente?” or “No se habla del dinero” echoes in our ears.

You’ve seen Disney’s Encanto, right? Remember the song, We Don’t Talk About Bruno? That’s basically how many treat money and mental health in our community. We don’t talk about it.

Many of our families came to this country fleeing violence, poverty or in search of more opportunities. They arrived with nothing but hope and a willingness to work hard. But what they also carried with them was a scarcity mindset, which was born out of survival. That mindset helped them endure unthinkable hardships. But now, it’s up to us to shift from surviving to thriving.

Why Mental Health and Financial Wellness Are Connected

The stats paint a painful picture. According to NAMI (National Alliance on Mental Illness):

• Over 50% of Latine young adults (ages 18–25) with serious mental illness don’t receive treatment.
• Only 35.1% of Latine adults with mental illness receive care, compared to 46.2% of the general U.S. population.
• 17% of Latine individuals live in poverty (compared to 8.2% of non-Hispanic whites).
• Individuals who live in poverty have a higher risk of mental illness and, equally, individuals with mental illness have a higher risk of living in poverty. 

On top of that, the Pew Research Center reported that during the pandemic, unemployment hit Latine communities hard. Many of those in our community struggled to pay for housing, groceries, medical expenses, and more. We may have been forced to lean on extended family or took side gigs just to get by. Unfortunately, there are many factors that contribute to these statistics. 

Rewriting the Narrative

Here is how I choose to move forward. My family lost everything in Cuba due to communism. That trauma shaped their worldview: save everything, trust no one, spend nothing unless it’s absolutely needed. But now I’m learning to see money differently. I see it not as something to fear, but as a tool.

When I started my financial healing journey, I heard a phrase that changed everything: “Instead of wondering where your money went, tell it where to go.”

That stuck with me. I realized I had the power to break the cycle. I didn’t want to just survive. I wanted to thrive. I wanted to show others that we are worthy of abundance. That we can care for our mental health and our bank accounts at the same time.

That’s why I became a Licensed Clinical Social Worker and a Certified Financial Social Worker. I want to help others challenge the same limiting beliefs that once kept me small and scared. Because here’s the truth: there is nothing wrong with you if you are struggling with money. But there is something powerful about choosing to heal from it. I learned that I have the power to change intergenerational cycles with money and mental health. And we have the power to break through systemic limitations that make it challenging for us to become financially independent.  

3 Steps Toward Financial and Emotional Abundance

If you’re ready to rewrite your money story, here are three steps that helped me, and it might help you too:

1. Talk to a therapist (preferably one who understands money trauma).
Financial therapists and social workers can help you process your money story and begin rewriting it. Healing starts with awareness.

2. Reframe your money beliefs.
Start small. Try affirmations like:
“I am worthy of financial freedom.”
“I release fear and welcome abundance.”

Yes, it might feel awkward at first. But affirmations help retrain the brain and break generational cycles.

3. Seek community.
You are not alone. There are countless free and low-cost resources, podcasts, and communities committed to financial healing. Find your people. Lean into support. Please know that there is power in the collective.

Money isn’t just about numbers. It’s about emotions, family, stability, and self-worth. Understanding our relationship with money is key to our liberation, our mental health, and our future as a community.

So, let’s break the silence. Let’s stop surviving and start living with compassion, truth, and comunidad at the center.

Sara Diaz is a Licensed Clinical Social Worker and Certified Financial Social Worker. For more information about Sara’s work, visit thefirstgenmadrina.com and follow her on instagram @thefirstgenmadrina.