Everything You Always Wanted To Know About Financial Wellbeing* *(But Were Afraid To Ask…)

Whatever life we have, whatever circumstances we face, and ultimately whether we like it or not, money plays a crucial role in our lives and a lack of confidence, with accompanying feelings of stress or anxiety, can have a significant impact on our mental and physical health and wellbeing.

17% of UK adults self-rate as having low ability and confidence with managing their money, while other tests suggest a rate as high as 40%, with many people challenged by aspects of everyday financial life such as interpreting complex financial offers, budgeting and saving.

Many of these people are pursuing life goals that would benefit from an improved ability to get to grips with their finances, but accessing information and developing the appropriate knowledge, skills and behaviours can be challenging. The Money Charity believes that it is through workplaces and communities, where adults already associate in groups, that the best opportunities exist for improving this.

To improve their financial wellbeing, people need to invest for the long-term – for example, buying a house, joining a pension scheme or enrolling in further education – at the same time as they budget for day-to-day and recurring annual expenses. How to anticipate and manage unexpected income shocks (such as redundancy, illness, accidents or other disruptions to normal working life) is another area of need. Research shows that many UK adults have zero or very low savings, so are vulnerable to any interruption to income. Debt charities report a shock to income is often the trigger of a downward spiral.

The picture could be discouraging but we believe that everyone can achieve financial wellbeing by engaging with their money and aspiring to manage it well. Through our workshops, resources and tools, we empower people across the UK to build the skills, knowledge, attitudes and behaviours to make the most of their money throughout their lives, helping them achieve their goals and live a happier, more positive life as a result.

Many commercial providers link financial wellbeing to a product (such as debt consolidation loans), whereas we believe financial wellbeing should be objective and impartial, not used as a sales channel. The ‘right’ decisions for one person and their family will look very different to someone else’s, and financial wellbeing will only improve by recognising this, and working within that understanding.

Through our workshops, resources and tools, people can develop the skills and knowledge needed to take control of their finances, become financially capable and achieve financial wellbeing. Our message throughout everything we offer is always a positive one: that everyone, regardless of age, stage, circumstances or background, can develop a positive relationship with money, harness it to achieve their goals, and ultimately be happier and less likely to suffer from the stress and anxiety caused by money worries.

If you share our passion for seeing the UK improve its financial wellbeing and would like to see this in place with your workplace or group, get in touch with us by emailing hello@themoneycharity.org.uk or 0207 062 8933.