- APRIL 1, 2021
- BY: GREENPATH FINANCIAL WELLNESS
April is Financial Literacy Month – designated by the U.S. Congress to raise awareness about the importance of financial literacy education, especially now with the economic uncertainties caused by the ongoing pandemic. Financial literacy simply means having an understanding of how to use money wisely. It is also about having information to build up short- and long-term financial habits and skills that lead to greater financial well-being. Research shows that your overall health and wellbeing is directly correlated to your financial health and wellbeing. We’ll be sharing insights throughout the month that offer up information as part of Financial Literacy Month. Let’s get started with a look at the impact of financial stress.
How does financial stress impact a person’s life?
The impact of financial stress is a daily challenge for many people. Based on GreenPath’s sixty-year experience serving clients with financial wellness counseling, some of the biggest challenges we hear from our clients stem from uncertainty. People face uncertainty about how to meet monthly living expenses, how to prioritize cost of housing in the face of any income changes, as well as financial strain being felt by the newly unemployed or furloughed as well as those still working but facing an uncertain future.[/vc_column_text][/vc_column][/vc_row]
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There is also significant uncertainty about when COVID related debt relief programs will end, including mortgage forbearance extensions and student loan debt relief programs. Financial stress can impact mental health, increase worry and anxiety, and compromise getting a good night’s sleep and overall physical health. Financial stress can also impact family relationships.
As an example, a young couple recently shared with us how their financial challenges, including getting a pre-foreclosure notice from their mortgage lender, caused tension in their relationship – leading them to work with GreenPath to get options to manage their finances.
Healthy Habits to Help Manage Financial Stress
Financial literacy can start with building better money habits and celebrating the small wins. For instance, from setting a simple spending plan to working to saving goals, being your own cheerleader is actually a good way to reinforce your new habits, which in turn makes it easier to stay on track if you hit a bump in the road at some point. Eliminating debt, learning new spending habits, and building savings are choices that can change your life. They can affect your overall well-being by reducing stress levels. This month is a great time to refresh your goals, make new milestones, and commit to your financial health.