What exactly is financial wellness (or financial well-being)? A definition Financial wellness (or financial well-being) describes a person’s emotional and financial well-being as a function of personal expenses and income. It s the outcome of effective cost management. In an organization, financial well-being is a key component of overall organizational health that includes physical, mental, and social well-being. In other words, financial well-being is the sum of all the good things a person does for his or her self, family, and/or society. If you wish to learn more about this, visit check it out
In addition to the above definition, many people use financial wellness to help them define their sense of personal finances. Some even go further and ask what financial wellness means to them. According to them, financial wellness includes being able to pay bills, save money, budget, plan for the future, investing for a better retirement, and spending less on non-essentials. When employees are financially healthy they feel they are less stressed, they have more discretionary income, and they can take control over their own life. They feel in control and therefore are happier. When employees are financially healthy, they feel they have a responsibility to stay that way and become a better person.
The above reasons highlight the necessity of financial wellness programs for every company. With an improved economy and so many employees laid off or looking for other employment, it is crucial that the employer work with its employees on many levels to help relieve the stress caused by financial hardships. Many employees start by asking their employer what kind of financial wellness programs they have available. Then they begin to look at ways in which to relieve the financial hardships that have already accumulated. In many cases, these employee benefits packages include lower interest rates on loans and mortgages, and saving, spending, and retirement funds.