What is financial wellbeing and how can you improve it?
2 MIN READ
In 2014, a global survey* discovered that only 55% of Irish people were financially literate compared to 66% in Germany, 67% in the UK and 71% in Sweden.
Research** commissioned by Bank of Ireland, in 2018, and carried out by research agency Red C, supported the findings of the global survey.
It found that 43% of Irish people didn’t have any savings.
If people lost their main source of income, 1 in 4 Irish people would last less than a month without having to borrow.
And almost two thirds (63%) of Irish people were not confident in the money they had saved for their long term financial goals.
Why does this matter?
Financial literacy matters because people who are less literate are more likely to make poorer decisions about saving, borrowing and investing.
That makes them more vulnerable to getting into expensive debt and less able to plan for the future with any confidence.
And, as we all know, poor financial decisions don’t just affect our money they also affect our health and wellbeing.
Your money and your health
Struggling to pay the bills can be stressful and lead to sleepless nights.
And because money plays such a central role in all our lives, when we have money worries they can take over.
So it’s no surprise that experts now consider that financial wellbeing is as important to our overall wellbeing as physical health, positive relationships, being engaged in the community and having meaningful work to do.
The good news is that we can all get better at managing our money and improve our financial wellbeing.
But, when we talk about financial wellbeing, what do we mean?
What is financial wellbeing?
Financial wellbeing comes from understanding basic financial principles and concepts and being able to apply this knowledge to our everyday lives.
It’s about feeling that we are in control of our money rather than being controlled by it.
In practical terms, this means not getting completely blown off course by an unexpected bill, not getting into expensive debt when there are better solutions available, staying on track to meet your financial goals and being able to make choices that help you to enjoy life.
Unfortunately, few of us are taught how to manage money when we are growing up and have to discover how to do it through trial and error.
How’s your financial wellbeing?
How well prepared you are to meet your financial needs?
We’ve created a financial wellbeing centre where you can check your financial health and learn how to improve it in 2 minutes.