When you hear the words “financial wellness,” things like income, savings, investments and net worth might come to mind, but these things only tell part of the story. When you hear the term “self-care” you may think of a visit to a spa or taking a hot bath but self-care involves far more than that! It’s the practice of looking after your own health using the knowledge and information available to you.
This is why financial wellness isn’t just about money. It’s also how a person’s financial resources impact the state of their physical, mental and social well-being. Self-care is just as important to your financial health as it is to maintain physical and mental health because your financial life is strengthened when you’re managing your stress properly and making good decisions.
Financial wellness is important for everyone, but women in the United States are especially under pressure. A financial wellness gap between men and women exists due to factors like the pay gap, the gender leadership gap, childbearing, higher health care costs and longer lifespans.
CNBC reports, “Women have a complicated relationship with money,” and “when it comes to money, women’s No. 1 word for their financial feelings was ‘stress.’”
Chronic stress resulting from financial worries can put you at risk for many health problems, including heart disease, digestive problems, depression, anxiety and more. Given the uncertainties of today’s economy, it’s common to be experiencing these elevated levels of financial stress, which can negatively affect your mental health. Being clear on what you can control and how you can control it is a key to healthy finances so it’s imperative for women to address their financial wellness.
Below, we’ll explore four aspects of financial wellness women can focus on to help improve their peace of mind.
1. Financial Literacy
“Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing,” according to Investopedia.
Over the past seven years, the TIAA Institute-GFLEC Personal Finance Index has found that financial literacy among women tends to lag that of men. In 2023, 10% of women displayed very high financial literacy, compared to 23% of men.
The good news is that financial literacy is something that can be developed over time. Reading books, listening to podcasts, subscribing to financial content, and learning from a financial professional are all ways women can become more financially literate.
2. Financial Confidence
Once women build financial literacy, they’re more likely to feel confident in their financial decisions. According to Bankrate, less than half of women (48%) are confident about their finances, and only 28% feel empowered to take action.
With more financial confidence, women may be more likely to focus on investing. Historically, women are more focused on building savings than investing. But by moving money into the market, women can make their money work harder for them.
3. Financial Peace
From the burden of debt to the stress of making ends meet, financial stress can take a toll on a person’s mental well-being. According to the Money and Mental Health Policy Institute, 46% of people with debt also have a mental health problem. And women are more likely to experience financial stress than men, with 56% of women saying money has a negative effect on their mental health, compared to 47% of men.
In an interview with CNBC, Jean Chatzky, Founder and CEO of HerMoney, shares that for women, financial peace means being able to meet financial obligations today while being able to save for tomorrow, as well as having some degree of confidence that their money can last their lifetime.
You may be interested in reading our blog How to Create a Monthly Budget That Works
4. Financial Relationships
Financial stress doesn’t just make a personal impact. It can also put a strain on romantic relationships, friendships and family relationships. In fact, money issues are among the top reasons for divorce. You may be interested in reading our blog, How to Prevent Workplace Stress From Impacting Your Relationship
Improving financial wellness not only helps reduce or eliminate potential sources of conflict, but it can also help strengthen relationships. Because when people are on the same page financially, they can be a team in joint financial planning and work together to achieve their goals.
Want more? Check out our blog, 5 Strategies to Help Women Improve Their Financial Health
We’re Here for You!
Working on your financial wellness may feel intimidating, but you don’t have to go it alone. Bankers Life financial professionals are here to help you be more confident in your ability to meet daily financial obligations, make smart investment decisions and have a personally satisfying retirement.
Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc. Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).
Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA).
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.
Investments are: Not Guaranteed—Involve Risk—May Lose Value.
