Why does financial wellness matter? Three of the top four drivers of uncomfortable levels of stress for North Americans are related to financial challenges.
- 45% of employees worry about personal/household finances
- 32% worry about trying to maintain a budget
- 31% worry about unexpected expenses
- Financial stress can lead to distress, sleep deprivation, absenteeism, reduced productivity, employee turnover, mental illness, etc.
- Financial stress causes more than 11 lost days of productivity per year (per employee).
- 20 to 30 percent of those with high levels of stress from debt live with anxiety or depression.
- The ROI for employers who offer employees easy access to financial programs is at least 3:1 and that doesn’t include the value of the increased goodwill.
- 50% spend 3 or more hours at work each week thinking about or dealing with financial issues.
- 31% say productivity at work has been impacted by financial worries.
- People that are “financially unprepared” are 16% less likely than others to say they are “productive in the workplace”.
- Health has been impacted negatively by financial worries. 26% millennials, 32% Gen X and 25% boomers have indicated a negative impact.
When dealing with personal finances, there are endless choices to be made about what to do with the money you earn and as many options for saving more of it. And there are countless ways that money slips from your hands unless you learn to manage and control it. With a little basic knowledge and effort on your part, financial health can be a reality for you and for your family.
How financial problems can affect mental health and well-being
Financial problems can and do affect mental health and well-being. Typically, mental health problems and financial difficulties can create a spiralling vicious circle where one compounds the other. When you have poor mental health, organizing and managing financial issues becomes trickier. In turn this creates a sense of fear, anxiety and worry, once again affecting your overall mental health.
Furthermore, financial problems can have huge consequences on relationships, particularly between spouses or partners. If one partner is more responsible for the financial difficulties than the other then this can create a sense of blame, which isn’t conducive to the health of the relationship.
The good news is there are things that can be done to help to reduce the impact of financial difficulties on mental health. It is possible to step outside of the vicious circle and enact change that can improve both the financial problem itself, and your mental health. The articles in this series will help!
The First Step in Financial Management is To “Get Real”
How serious is your debt?
When it comes to finances, face your numbers
What can you do to avoid a financial disaster?
Learn ways to better manage your hard-earned money and keep more of it.
Budgeting and Goal-Setting
Managing credit: Review your credit card agreements
Squeezed for Savings? Find More Money With These Tips
Good money management always includes plans for the future.
Planning for your financial security
Planning for your retirement: A few questions to ask yourself ahead of time
Setting your retirement goals
Are you managing your money well? Learn ways to better save.
Managing credit: Review your credit card agreements
[Using credit wisely](Using credit wisely)
Teach your child how to be “money-smart”
Learn More
For more information about financial well-being, the following resources may be helpful.
MoneySense Magazine (Canadian resource)
Invest in your financial well-being -- Government of Canada
Canada’s Financial Literacy Blog -- Government of Canada
Canadian Financial Calendars -- My Money Coach
Credit Counselling Society
Mortgage Affordability Calculator -- Canada Mortgage and Housing Corporation (CMHC)
