Financial well-being – corporate buzzword or corporate responsibility?

Talking about money has long been a social taboo, akin to the hesitancy people once had about discussing mental health. However, just as mental health has rightly become recognized as a crucial aspect of our overall well-being, so too should our financial health. Financial well-being goes beyond mere numbers in a bank account—it’s about the freedom and peace of mind that come with having control over your finances.

Financial well-being isn’t synonymous with being rich. Instead, it’s about having a secure, stable foundation. It means being in control of your day-to-day and month-to-month finances, having the capability to absorb a financial shock, being on track to meet your financial goals, and having the financial freedom to make choices that allow you to enjoy life.

The journey to financial well-being begins with setting clear, attainable goals. Whether it’s saving for your future horizon, a child’s education, or creating an emergency fund, these goals act as your financial roadmap. However, setting goals isn’t enough; they must be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This clarity transforms dreams into achievable targets. Effective money management is therefore the bedrock of sound financial well-being.

Financial stress doesn’t operate in a vacuum—it seeps into every aspect of life, affecting your mental and physical health. The stress from mounting debt or the inability to meet financial obligations can lead to sleepless nights, anxiety, and a host of health issues. Conversely, financial security offers a sense of stability and peace, contributing significantly to your overall well-being. Studies indicate that mental and physical health have a direct correlation with financial health – in simple terms, we are at our mental and physical peak when our finances are in check (Soomin and Fan, 2023).

Employers play a pivotal role in their employees’ financial well-being. A workforce burdened by financial worries is less productive, more stressed, and more likely to seek new job opportunities. Conversely, employees who feel financially secure exhibit higher levels of engagement, satisfaction, and loyalty. Workplaces that offer financial education programs, retirement planning sessions, and open dialogues about money matters aren’t just investing in their employees—they’re investing in their own success.

It’s time to break the silence and destigmatize conversations about money. Just as open discussions about mental health have become normalized, so too should discussions about financial health. Open dialogue paves the way for support, learning, and growth. These conversations help to increase our confidence in ourselves so that our self-efficacy can flourish, which in-return will empower us to take control of our finances and steer our lives in the right direction. Increased self-awareness and a basic grasp on the financial landscape we find ourselves in, are key to unlocking this potential.

Recognising the need for actionable financial education, JA Malta offers free money management workshops. These workshops aren’t just about budgeting and saving; they’re about empowering individuals with the knowledge to make informed financial decisions, fostering a sense of financial competence and confidence.

The ripple effects of individual financial well-being extend far beyond personal peace of mind. It’s a catalyst for economic stability, growth, and resilience. In Malta, where the economy is diversifying and the financial landscape is evolving, the financial well-being of its citizens can significantly impact its economic trajectory. By investing in financial education and fostering an environment of financial confidence, Malta can ensure not just the prosperity of its citizens but also the robustness of its economy.

Remember, financial well-being is a journey, not a destination. It’s about making small, consistent steps towards your financial goals. Seek resources, attend workshops, and don’t be afraid to ask for help. Your financial health is an integral part of your overall well-being, and it’s time it takes the centre stage it deserves.