Financial worries are leading to substance abuse and mental health issues.

New research by financial services firm Acorns Grow Australia has found that drinking, drugs, trouble sleeping and physical health issues are among the problems caused by money worries.

It found 73 per cent of Australians are stressed by their current financial situation, including 25 per cent who are severely stressed. About half say money issues have affected relationships and work performance, one-third say it leads to excessive drinking and one-in-five say they have taken illicit substances to help them cope.

Acorns Grow Australia managing director George Lucas said the findings should be a wake-up call for authorities to consider health issues caused by a lack of money knowledge.

“Financial literacy is an important part of a healthy nation,” he said.

“Mental health issues and their causes are often a taboo topic, even in an open country such as Australia.”

The Acorns survey of 1000 people found that women under financial stress are more likely to experience mental and physical health problems, while men tended to turn to alcohol or drugs.

“The research suggests many of the pressures and health issues Australians face can be avoided if we can encourage people to honestly assess their financial situation,” Mr Lucas said.

Financial Counselling Australia CEO Fiona Guthrie said that money problems, mental health and substance abuse were “always” intertwined.

“The idea that you can’t pay the rent, the mortgage or electricity bill or put food on the table is an enormous source of stress,” she said.

“It can be hard to know which is cause and which is effect.

“Often one of the first things a financial counsellor will do is hand over a box of tissues.”

Ms Guthrie said counsellors’ key message was that there were things that people could do to reclaim control of their finances, including speaking with bill providers, deferring payments, payment reductions and waivers, and in some cases bankruptcy.

“There are options and there are pathways. The longer you leave it, the harder it is,” she said. People worried about their finances can phone the national financial counselling helpline on 1800 007 007 for free help.

Acorns chief operating officer Brendan Malone said there had been growing concern about financial stress, and for some people all that was needed was some education and an attitude change.

“Have a budget, but factor savings into the budget, not just saving whatever is left over,” he said.

Acorns launched a micro-investing app in Australia earlier this year, and has signed up 135,000 clients with an average balance of $560.