I’ll admit it: even with years of experience in operations and strategy, I’ve had moments where I wanted to look the other way when it came to my own finances. And I’m not alone.
Nearly half of Americans don’t have a written financial plan (Investopedia, 2024). Another study found that 53% of people feel “financially frozen” — paralyzed by too many choices and unsure where to begin (New York Post, 2025).
In a survey I conducted in 2024, people shared in their own words why they procrastinate or avoid financial planning. The reasons weren’t about laziness. They were about something much deeper: fear, mistrust, and overwhelm.
Why Do We Avoid Financial Planning?
Money is emotional. It represents safety, freedom, and in some cases, shame. Facing it head-on can feel like standing in front of a wave you’re not sure you can surf.
One participant admitted:
“I’d take action if I had more confidence in my own knowledge.”
This captures the psychology of financial avoidance. If you don’t feel fluent in financial language, it’s intimidating to sit across from someone who does. The fear of being misled — or of making the wrong decision — makes avoidance feel safer than action.
Why Don’t People Trust Financial Advisors?
The financial industry doesn’t have a spotless reputation, and people don’t forget bad experiences. In my research, respondents shared stories that still shape their mistrust years later:
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“We went to our trusted bank and met with a financial advisor. It felt as if we didn’t belong there, like we didn’t have enough savings. It was robotic, no human connection.”
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“A financial advisor tried to sell my husband life insurance under the guise of a retirement account. Thankfully we got a second opinion, but I’ve seen others discover in their 50s they don’t actually have retirement savings.”
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“Our advisor and accountant failed to notice we were over the Roth IRA income limit for years, leaving us open to penalties.”
These experiences reinforce a common barrier to financial planning: mistrust. It’s not just about one bad meeting. It creates doubt in the entire profession.
Procrastination and Money: Waiting for Milestones or Crises
Another theme that came through loud and clear: people delay planning until something big forces their hand. A wedding, a new baby, a home purchase, retirement. Or worse — a crisis.
As one respondent put it:
“Big milestones like buying a house or retirement push me to act, but otherwise I wait.”
This reactive approach means opportunities get missed in the meantime. And when life does force a decision, there’s often less time, less flexibility, and more stress.
The Psychology of Financial Avoidance
Behavioral researchers call it financial avoidance psychology — when fear, shame, or stress makes us ignore our money instead of facing it. It’s why some people put unopened bills in a drawer or avoid logging into their accounts.
One participant said it plainly:
“Sometimes it feels easier to do nothing than to face all of it.”
Avoiding doesn’t reduce stress; it multiplies it over time.
How to Overcome Barriers to Financial Planning
The encouraging part: moving from avoidance to action doesn’t require overhauling your entire financial life in one go. Both research and survey responses point to small, manageable steps:
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Start with one thing. Review one account, one bill, or one goal. Progress builds momentum.
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Learn in safe spaces. Podcasts, newsletters, and blogs provide education without pressure. Many in my survey said they prefer this before talking to a professional.
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Redefine trust. Look for advisors who are transparent, empathetic, and consistent — not just the ones with impressive credentials. Referrals and word-of-mouth matter more than glossy marketing.
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Anchor to milestones — intentionally. If life events trigger you to act, plan around them. Schedule a financial check-in every time something changes.
The Takeaway
We don’t procrastinate on financial planning because we’re irresponsible. We put it off because we’re human. Fear, mistrust, and overwhelm are powerful barriers to financial planning — but they’re not permanent.
By recognizing these blockers and taking small, intentional steps, you can move from avoidance to action and build a plan that gives you confidence for the future.
Note: Quotes in this article are drawn from original market research I conducted in 2024 with a diverse group of individuals across income levels and life stages. All responses are anonymized.
