Financial wellbeing is more than just a matter of making ends meet; it directly influences our mental and physical wellbeing. When we are confident of our financial future, we are more resilient to the financial shocks caused by life events, and this supports our emotional resilience at a time that can already be challenging.
The complex link between financial and mental wellbeing is a topic of extensive research for organisations such as the World Health Organization (WHO), The Money and Mental Health Policy Institute, and Money and Pensions Service (MaPS) to name a few. Research has highlighted the profound impact that financial stressors can have on an individual’s mental health. Financial instability, increasing debts, the struggle to make ends meet, or an impactful life event such as a bereavement, job loss, or illness, can lead to heightened levels of stress, anxiety, and depression.
Talking Money
Talking about money has always been taboo and it is something many of us feel uncomfortable about, whether it is with our partner, children, or friends. Often the thought of talking about finances can trigger feelings of shame and this in turn inhibits conversations about money.
Open and honest conversations about money can have a positive and enduring impact on a person’s wellbeing as they can lead to increased financial literacy and empower individuals to make informed decisions about their finances.
Each year the Money and Pensions Service hosts ‘Talk Money Week’ to encourage people across the UK to talk about money from pocket money to pensions. Talking openly about financial concerns and seeking guidance from friends, family, or financial professionals can provide emotional relief and can lead to finding support and practical solutions to money worries, thus creating a sense of control and reduced stress for the individual. It can also contribute to forming good money habits in children.
This year’s ‘Talk Money Week’ theme is ‘Do one thing’. For a lot of people, trying to tackle a large area of their life such as their financial wellbeing, can seem daunting and overwhelming. When broken down into smaller actions and commitments, to do just ‘one thing’, can over a period of time lead to small, incremental changes in attitude and habits that have a long-lasting positive impact on the individual’s wellbeing.
Talking about money openly can also break down the stigma associated with financial difficulties, making it easier for individuals to seek help when needed. If an employee is struggling with debt and they could benefit from a referral to regulated debt advice or talking through the emotional impact money worries with a counsellor. This is where the services provided by an Employee Assistance Programme (EAP) such as CiC’s Confidential Advice Line can be invaluable.
How employers can provide support
Prioritising financial wellbeing in an organisation can foster a more positive culture and productive workforce, affording employees the headspace to be creative by reducing the distraction caused by money worries. It demonstrates a commitment by the organisation to the holistic welfare of its employees by investing in their financial wellbeing by not only addressing their present needs but also helping achieve a more secure future.
Employers should consider implementing wellbeing initiatives that support the financial wellbeing of their employees. As part of this, an Employee Assistance Programme can be promoted to support employees who are facing money worries, offering invaluable emotional and practical support.
Furthermore, organisations can encourage and support managers to equip them with having compassionate, confidential, and empathetic conversations with their staff around money worries and how these worries could impact the individual’s overall emotional wellbeing and performance. CiC offers a dedicated support channel for individuals in management roles and can support with guidance on opening these lines of communication, as well as addressing some of the anxieties managers are challenged by in having these conversations. Managers may benefit from accessing our dedicated Managerial Adviceline Services.
In conclusion, financial wellbeing is not merely a personal concern of the individual but a cornerstone upon which positive organisational culture is built. By championing the emotional and financial wellbeing of employees, you are investing in a brighter, more resilient future for both your workforce and organisation as a whole.