How mindful are you with your money?
LIZ CONNOR FINDS OUT HOW THE LATEST MILLENNIAL WELLBEING TREND CAN PLAY A KEY ROLE IN OUR MENTAL HEALTH AND HAPPINESS
WHEN it comes to self-care, pulling up your bank statements is possibly the last thing you’d think of doing – but experts suggest this is an important part of the happiness equation.
‘Financial wellness’ is particularly relevant for millennials. Office for National Statistics figures show that more than half of 22-29-year-olds have no savings, while the Money and Mental Health Institute found a quarter of the UK workforce is experiencing financial insecurity to some extent.
But, while money-induced anxiety is familiar to many of us – what is financial wellness all about?
“At a basic level, financial wellness is about having peace of mind that you will have money when you need it – now and in the future – whenever that may be,” says Laura Laidlaw, head of customer communications at Standard Life (standardlife.co.uk).
“It’s about knowing how to manage your money, giving you control over day-to-day finances and having the capacity to absorb something unexpected happening.”
IT’S NOT ALL ABOUT HOW MUCH YOU EARN
ACHIEVING this isn’t all dependent on earning huge amounts of money – it’s about adopting a sense of control over the cash you have, and setting goals that can lead to rewards – whether that’s savings for a dream trip, or pulling together a mortgage deposit.
“It’s also the assurance that comes from knowing you have a back-up plan if something unexpectedly goes wrong and you need to access finances quickly,” says Holly Andrews, managing director at KIS Finance (kisbridgingloans.co.uk).
DO YOU UNDERSTAND YOUR PENSION, TAX AND WHAT BENEFITS YOU’RE ENTITLED TO?
HOLLY says knowing that your finances are well organised means you can relax in the knowledge that you’re less likely to get an unpleasant surprise.
“Ignorance isn’t bliss; it’s knowing where you are financially that gives you peace of mind,” she stresses.
FINANCIAL AND MENTAL WELLBEING ARE CLOSELY LINKED
IT’S NO surprise that the stress of financial woes can have a detrimental effect on mental health. Money and Mental Health surveyed nearly 5,500 people with experience of mental health problems, and 86% said their financial situation had made their mental health problems worse.
“Financial wellbeing is a key component of overall wellbeing, as it is central to our sense of security,” agrees Dr Meg Aroll, a psychologist speaking on behalf of Healthspan (healthspan.com).
“In terms of basic needs, money provides the necessities for survival such as food, water and shelter, and without financial security we can slip into a chronic stress loop, which directly impacts both mental and physical health.”
MILLENNIALS ARE NOW PRIORITISING MENTAL AND SPIRITUAL WELLBEING
WHETHER it’s celebrating getting out of your overdraft or discussing the best ISA rates, don’t be surprised if financial wellness is brought up at your next brunch date.
“Being reliant on others can make us feel powerless, while being financially independent gives the freedom and choice which is essential for happiness,” says Holly.
Dr Aroll adds: “Debt and lack of financial control can lead to anxiety, depression and in severe cases suicidal ideation and also suicide. The impact of debt should not be underplayed – talking about money is key to a healthy financial relationship.”