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 2026.
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 well-being and can have a significant impact on physical health. When someone is financially stressed, they may delay or skip medical care due to cost concerns or be unable to afford essentials like nutritious food. This is reflected in recent research from West Health and Gallup, which found that 35% of U.S. adults say they currently cannot afford or access quality healthcare when needed—a record high. Financial strain like this doesn’t just affect the wallet—it can lead to poorer health outcomes, greater absenteeism, and higher healthcare costs for employers and employees alike.
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 time 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.
