Financial Wellbeing

Having positive financial wellbeing creates financial peace of mind and a sense of security. There are four broad elements:

  • having control of day to day finances
  • financial freedom to make choices that allow the enjoyment of life
  • the ability to cope with financial shock e.g. redundancy
  • providing security for those we leave behind

Poor financial wellbeing can affect psychological wellbeing, increase stress and anxiety levels which can all affect sleeping, relationships and physical health.

 

Financial Guidance from HELP / Employee Assistance

Money worries can affect us all at different times of our lives through our physical and mental health, taking its toll on how we function in our personal lives and at work. With many feeling financial pressures relating to Covid-19, the energy crisis and a month of festivities, employers can look to support staff by providing access to financial wellbeing support.

We interviewed Antony Price from PayPlan, a free debt advice service, to discuss current trends, the link between debt and mental health and what steps can be taken towards improved financial wellbeing and to learn what steps employers can take to help support the financial wellbeing of their employees.

Financial Wellbeing Video's by Andrew Kinder & Antony Price

For further support, CIPD have put together some guidance here, covering why employee financial wellbeing is important and practical steps that can be taken

 

NHS National Wellbeing Hub

All NHS Staff are able to link into the National Wellbeing Hub events - they are currently delivering 'Money Worries and Financial Wellbeing' events - click here to find out more information and register

National Services Scotland

Salary Finance Limited produced a Guide to Financial Wellbeing (2019-20) which states that 36% of employees have financial worries. They developed five levels of financial fitness:

1) Strugglers - Often run out of money before pay day

2) Copers - have virtually no savings and don’t have enough to spend on life’s little luxuries (e.g. new trainers, a night out) without feeling guilty

3) Builders - have some savings but less than three months so don't have resilience to deal with life's unexpected expenses (e.g. new boiler or vets bill)

4) Planners - Have more that three months of savings to cope with an unexpected expenses and a plan in place to achieve long term financial goals

5) Prosperers - Finances are not a constraint to living the life they want.

Financial wellbeing is not based on the amount you earn, but rather what you do with it (budget, borrow, spend, save). For example, a ‘planner’ tends to save first then spend, whereas a ‘coper’ tends to spend first and save what is left over. It might be helpful to consider which level you feel you fall into just now and where you would like to be.

The following information can help you manage your money matters more effectively.

  • Sticking to a Budget
  • Managing Debt
  • Dealing with a crisis
  • Savings
  • Planning for the future