Just in case you weren’t aware, May is Mental Health Awareness Month, and now’s the perfect time to dive into the link between financial well-being and mental health.
Financial stress can seriously affect mental health, and the same goes the other way around. This week, we’re going to reveal how to cut down on financial stress and pave the way to financial TRIUMPH!
This post is about how to prioritize your financial wellness this month.
🤫 Let’s fill you in on the secret
Studies have shown that money troubles can lead to feeling down and stressed out, while others dealing with mental health challenges might find it harder to focus on their finances and succeed. By getting your financial game on point, you can take a breath and feel better mentally.
According to the 2022 TIAA Financial Wellness Survey, only 22% of Americans think their financial wellness is top-notch (9 or 10 out of 10). Gen Z folks seem to be the least optimistic, with just 12% of them giving their financial wellness a high score of 9 or 10.
Moreover, peeps from this generation feel like their money situation is not where they expected it to be when they were younger, and it’s even worse than what their parents experienced at their age. So, let’s work on improving financial wellness to boost mental health for everyone!
But what does being “Financially Healthy” look like? 🤔 ⬇️
Financial wellness can mean different things to different people. Basically, it’s all about keeping your money game strong and having a stable economic life. This involves:
- Keeping it real and spending within your means, while being in charge of your daily and monthly finances.
- Having the financial freedom to do what you want, when you want.
- Being able to handle any unexpected money emergencies that come your way.
- And last but not least, making moves to meet your long-term financial dreams and goals.
We’re all on our own unique financial journeys, but here are some tips to help you thrive financially:
- Master your monthly spending: Whip up a budget to keep track of your income and expenses. Understanding your cash flow is 🔑 to financial success.
- Build your emergency fund: Set aside money for curveballs life might throw at you. Aim for 6 months’ worth of essential expenses in an easy-to-access account.
- Track your bill due dates: Jot down when your rent/mortgage, credit card, and loan payments are due. Avoiding late fees = protecting your credit score.
- Conquer your debts: Create a plan to tackle credit card bills, student loans, and other debts holding you back from growing your wealth. 💰
- Plan for your financial future: Set goals for buying a home 🏠, funding higher education 🎓, and enjoying a comfortable retirement.
📰 In the news:
From Generation Z to Baby Boomers: The Varied Impact of Financial Stress Across Age Groups
Why it matters
Numerous companies are implementing innovative initiatives and strategies to bolster their employees’ financial wellness. However, how do various age groups manage in the face of increased financial pressure? Money worries cause low productivity universally across every generation, and how different employees feel about their finances remains unsettling across every generational group. The study suggests that organizations should deliver immediate relief to those struggling, work with employees to find out what will help them, support all life stages, double down on education, and always be inclusive. These steps will help employees manage financial stress and improve their overall well-being.
By the numbers
The key findings from the nationally-representative survey of 1,300 UK workers conducted by Claro Wellbeing. The survey revealed that younger generations are more likely to say money worries affect their performance at work, with two-thirds (67%) of employees saying they feel money worries affect their work. The survey also showed that the greatest cross-generational source of financial stress was managing finances amid the cost of living crisis, and that budgeting and difficulty buying a house were more of a worry for younger generations. Additionally, a significant percentage of each generation is struggling with debt, with 35% of Millennials experiencing financial stress due to debt.
The big picture
The study reveals that organizations need to understand how closely tied financial goals can be to an employee’s well-being, and offer every employee different methods of making progress. They suggest that organizations should double down on education to help employees discover and build good (financial) habits, while becoming conscious of bad ones. Education can take many forms, from financial coaching to financial wellbeing webinars and Finance Friday sessions. By taking these steps, organizations can help their employees manage financial stress and improve their overall well-being.