The conversation surrounding wellness has become much more holistic in nature. Not only physical health, but also mental and emotional health are a part of your wellness. However, recently, financial health has also become an important part of the overall wellness. A healthy relationship with your money is as important as having a healthy relationship with body and emotions. More people than ever before are stressed about their finances. Despite this, it is still taboo to talk about money. Financial health and the conversation around it is challenging this taboo, making it part of the dialogue about health and wellness.
Developing a healthy relationship with your money is the aim of financial health. The idea is to develop a sense of control over short-term financial obligations.
What Is Financial Health?
Financial health indicates your relationship with your money. It helps you focus on the state of your personal financial situation. Financial health includes your savings, your emergency funds and your retirement funds. Another important aspect is the way you spend your money; essential and non-essential expenses.
Developing a healthy relationship with your money is the aim of financial health. The idea is to develop a sense of control over short-term financial obligations. Moreover, it also involves working towards long-term financial goals. Among millennials, financial health is becoming more and more important. Several youngsters are using digital tools to manage their finances. There has been an increase in blogs, podcasts and Instagram accounts that talk about financial health and wellness.
Shanna Tyler, a life coach who works with women entrepreneurs, tells Well and Good how women are leading this conversation. “I’ve seen an increase of financial podcasts run by women, social-media posts by women sharing their money stories, and honest conversations at the table amongst women on salaries… It’s so empowering.”
READ ALSO: Women Gotta Talk Money – Four Reasons Why
How Financial Health Is Linked To Wellness
PWC’s 8th Employee Financial Wellness Survey says employees feel that the compensation they receive does not meet their cost of living. As a result, more employees than ever before are stressed about their finances.
A study found that individuals with depression and anxiety were three times more likely to be in debt. This clearly indicated the relationship between financial stress and mental health.
It is clear that without financial health, mental wellness is difficult to maintain. Financial worries contribute most directly to stress. Research does show the correlation between financial worries and mental health. A study found that individuals with depression and anxiety were three times more likely to be in debt. This clearly indicated the relationship between financial stress and mental health. When there is less stress and worry about financial troubles, people are more likely to focus on personal and occupational goals. The confidence that financial literacy leads to translates into an overall improvement in one’s self-esteem.
How Employers Are Incorporating Financial Health
The India Health and Wellbeing Study by Willis Towers Watson India reports how employers are focussing on the financial health of their employees. According to the study, 63 percent of companies already have or are developing a strategy to improve financial wellbeing. Moreover, 13 percent are considering do that in three years’ time.
“Companies are realising that for more holistic well-being of employees, all four aspects- physical, emotional, financial and family well-being have to be addressed. The onus of financial well-being is not just to make employees — including millennials – financially literate but to prepare them for future financial resilience and reduce potential stress as a result of not being adequately prepared,” Sudesh Shetty, head of health and benefits, Willis Towers Watson India Insurance Brokers told The Economic Times.
In August, online fashion company Myntra introduced ‘Thrive’. This is a wellness framework for employees, in which financial well-being is one of the main tenets. Several other companies are also aiming to implement such strategies for the financial health of their employees.
Prapti is an intern at SheThePeople.TV. The views expressed are the author’s own.