Financial Wellness

Our topic this month is Wellness. Rather than physical wellness, I am going to talk about financial wellness - the ability to comfortably manage one’s finances.

Financial wellness refers to the overall health of an individual’s financial situation. It means having control over day-to-day finances, being prepared for unexpected expenses, and working toward long-term financial goals.

Achieving financial wellness often involves budgeting, saving, managing debt, and making informed financial decisions to reduce stress and build confidence.

Examples of Financial Wellness

Because financial wellness is influenced by our past, present, and future, consumers can see practical application in each of these areas. Here are some examples of financial wellness practices for consumers:

Debt Management: Understanding our past money habits can help consumers on our journey towards financial wellness. Financial wellness can mean keeping debt at manageable levels or completely paying it off.

Daily Spend Stability: Financial wellness is also about everyday money habits. We should strive to live within our means. Budgeting and paying bills in full and on time can help control the daily spend.

Emergency Preparedness: Nineteen percent of consumers find that being able to save for the future defines financial wellness. This can mean looking toward the future with emergency preparedness in mind. Being proactive about savings, contributing to retirement accounts, and setting financial goals are examples of financial wellness.

Benefits of Financial Wellness

Ability to Manage Day-to-Day Expenses: Financial wellness can benefit us right away. Fifty-five percent of consumers report that they are currently living paycheck to paycheck. Financial wellness can help prepare for and handle upcoming everyday expenses to get out of the paycheck to paycheck cycle.

Preparation for the Future: Financial wellness can teach important skills like saving, budgeting, and investing. When we prioritize our financial health, we become more prepared financially for unexpected life events. Ultimately, financial wellness empowers us to make more informed financial decisions that will have a lasting impact.

Mental and Physical Health: Fifty-one percent of consumers say money is their main source of stress. Financial wellness helps limit the stress caused by financial issues, offering a greater sense of optimism and security. Because health and financial well-being are connected, investing in financial wellness can give us more fulfilling lives.

Sandy Thompson
Chair Finance
finance@nfbpwc.org