You may have heard the term financial wellbeing used when discussing money matters. It may also be referenced by other names, such as financial wellness, resilience, or confidence. This guide is designed to help you understand more about financial wellbeing, why it’s important, and actions you could take to improve your financial wellbeing.

What does financial wellbeing mean?

When we talk about financial wellbeing, we mean how confident and in control people feel of their current and future financial position and their relationship with money. So, it’s not just about how you feel about your money today – it’s also your long-term ability to be financially well.

It’s about knowing what makes life enjoyable and meaningful for you now and in the future and having the money goals to achieve this.

Financial wellbeing can mean different things to people as everyone’s circumstances and needs are unique. For some, it may be about having enough money to live in the present, handle unexpected expenses, and being able to plan for the future. For others, it may be simply having enough to cover the bills and stay on track with savings for later life.

Why financial wellbeing is important

Improving your financial wellbeing could help you enjoy a more meaningful life and underpin meaningful financial decisions.

When you have more financial confidence, this can have a positive effect on many areas of your life. For example, it could reduce financial worries and give you the ability to plan for your future or support your loved ones.

Making the most of life’s opportunities

Being in control of your money could give you the financial freedom to achieve the life you want. Positive financial wellbeing helps you fulfil your aspirations, with the confidence that your money is going towards the things that give you most joy. What brings satisfaction and meaning in life is different for everyone. The important thing is that you know you’re saving towards what really matters to you.

People are also living longer, and the typical three stages of life (education, career, and retirement) are evolving. Having more control of your financial wellbeing could help you embrace the opportunities of a longer life.

Less financial stress

Having too much stress or anxiety from money worries can have a knock-on effect on your performance at work and your relationships. Poor financial wellbeing and poor mental health are closely linked – with each affecting the other. So, improving your financial wellness, could be beneficial for your overall health, wellbeing, and performance at work. 

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