Financial Wellness Month: A Holistic Approach to Well-Being

During the new year, our focus tends to shift to physical and mental health. (After all, what better way to start the new year fresh than by committing to building healthier habits?) However, the new year is also a great time to commit to improving our financial health as well.

Financial wellness is just as important as (perhaps even more important than) physical and mental health when it comes to achieving a balanced life, because it affects other aspects of our overall well-being.

Since January is Financial Wellness Month, it's a perfect opportunity to reflect on our finances, take stock of our financial goals, and explore ways to improve our financial health in 2025.

What Exactly Is Financial Wellness?

At its core, financial wellness means feeling confident and secure in progressing your financial situation, with a clear understanding of how to manage your income, expenses, savings, and debt. It's about having control over your finances (which allows you to plan for the future and avoid stress) and making choices that support your overall well-being.

Financial wellness is not just about accumulating wealth; it's about ensuring your financial decisions contribute to a healthier, more fulfilling life.

The Connection Between Financial, Physical, and Mental Wellness

Financial wellness is interconnected with other aspects of our well-being and can have a big impact on other areas of our health and wellness. For example, when someone is financially stressed, it can negatively impact their physical health. Perhaps they aren't able to afford nutritious food or neglect medical check-ups due to cost concerns. (This is reflected in the Federal Reserve's most recent Economic Well-Being of U.S. Households report which revealed that 27% of adults went without some form of medical care in 2023 because they couldn't afford it. That same report also found that seven percent of adults experienced food insufficiency during the same year.) Financial strain can directly impact a person's physical health in this way.

Likewise, financial wellness also influences our mental health. According to a 2024 Bankrate survey, nearly half of Americans say that money is negatively impacting their mental health.  Uncertainty about debt, saving for the future, and the challenge of making ends meet can trigger mental health issues. On the other hand, when a person is free of financial worry, they feel a sense of control and security that can provide emotional peace and mental clarity.

Just like we need to be proactive about taking care of our physical and mental wellness, we also need to take proactive steps in managing our financial wellness for a well-rounded, healthy life.

How Finances Affect Every Area of Our Lives

Just like physical and mental health, our financial health ripples across nearly every aspect of our lives. It influences:

Career Choices

Financial stability can affect job satisfaction and career decisions. Feeling financially secure may empower individuals to pursue their passions (like starting a business or taking tie off to travel), while financial uncertainty might lead to staying in a job for security rather than personal fulfillment or delaying retirement.

Relationships

Money, or the lack thereof, can lead to tension in relationships. Couples often struggle with budgeting, debt, and differing financial priorities. Financial wellness offers partners a shared sense of financial control and reduces conflicts about money.

Personal Growth and Leisure

When a person's finances are in order, it's easier for them to focus on personal growth and experiences. They may feel empowered to invest in hobbies, travel, or pursue educational opportunities without the constant worry of financial strain.

Health and Well-Being

Beyond access to healthcare, financial wellness directly correlates with self-care. For example, people who feel financially secure are more likely to exercise regularly, sleep better, and eat healthier because they have the resources to do so.

It's clear to see how financial wellness plays a critical role in shaping our quality of life. It affects our emotional well-being, relationships, career choices, and even our physical health and is deeply connected with other aspects of our overall well-being.

We encourage you to prioritize your financial health this new year by learning about financial wellness and committing to bettering the financial health of you and your employees throughout Financial Wellness Month and beyond.