Some of the many causes of low self-esteem may include: Unhappy childhood where parents (or other significant people such as teachers) were extremely critical. Poor academic performance in school resulting in a lack of confidence. Ongoing stressful life event such as relationship breakdown or financial trouble.Living with low self-esteem can harm your mental health and lead to problems such as depression and anxiety. You may also develop unhelpful habits, such as smoking and drinking too much, as a way of coping.