Financial wellbeing is known by many names – like financial literacy, wellness, confidence or resilience – but put simply, it’s about having a good relationship with your money.
- How we define financial wellbeing
- How to improve financial wellbeing
- Why financial wellbeing is important
- How financial wellbeing benefits businesses and employers
- How your frontline services build financial wellbeing
- How we can help your organisation improve financial wellbeing
How we define financial wellbeing
For us at the Money and Pensions Service (MaPS), financial wellbeing is about feeling secure and in control. It’s about making the most of your money from day to day, dealing with the unexpected, and being on track for a healthy financial future. In short: financially resilient, confident and empowered.
People who experience financial wellbeing are less stressed about money. This, in turn, has positive effects on their overall mental and physical health, and on their relationships.
It’s more important now than ever to help your colleagues, customers and community to build financial wellbeing. MaPS can help your organisation to start or continue developing ways to do this.
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How to improve financial wellbeing
There are multiple aspects to financial wellbeing. We break down the UK’s general financial wellness into five key areas:
- receiving a meaningful financial education
- saving regularly
- using credit for everyday essentials
- accessing debt advice
- planning for and in later life.
And here’s why these aspects of financial wellbeing are so important. Before the pandemic:
- 11.5 million people had less than £100 in savings to fall back on.
- 9 million people often borrowed to buy food or pay for bills.
- 22 million people said they don’t know enough to plan for their retirement.
- 5.3 million children didn’t get a meaningful financial education (Financial Capability Survey 2018).
How we measure financial wellbeing
These statistics offer a strong indication of how financial wellbeing (and generally financial literacy and financial capability) is faring in the UK. Improvements in financial wellbeing can be shown in either a decrease or increase in these key statistics. We survey the nation regularly to keep informed of changes in these personal finance areas.
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Why financial wellbeing is important
A financially healthy nation is beneficial for individuals, communities, businesses, and the economy.
Financial stress – and its knock-on effects for mental health, relationship breakdown and physical health – can have severe consequences for individuals, organisations and communities. The economic impact of Covid-19 has affected the mental health of some individuals, exacerbating a nationwide problem.
"Over the period 2020–2030, a key role for MaPS will be to widen the range of leaders committed to improving financial wellbeing in public, private and voluntary sector organisations."
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How financial wellbeing benefits businesses and employers
Employers benefit from financial wellbeing
People who enjoy good financial wellbeing are more productive at work. If they are not, employers suffer too. In 2018, 11% of UK workers reported they had experienced a fall in productivity at some point over the preceding three years as a result of their financial situation.
Businesses also benefit
If people don’t fall behind with bills and payments, businesses have healthier profits and cash flow and don’t need to write off debts. People who have financial wellbeing are more likely to spend sustainably.
The economy benefits from the future focus of people who enjoy financial wellbeing
When people can set aside money for their future, it can be invested in businesses and potentially boost the productive parts of the economy.
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How your frontline services build financial wellbeing
Your organisation may already be helping people with their money and building financial wellbeing. For example:
- Does your organisation offer your colleagues workplace pensions or signpost to discounts and debt advice in your employee wellbeing strategy?
- Do your customers/service users ask for help with bills, filling in benefits forms or opening letters?
- Does your organisation signpost to help with money, such as local credit unions, budgeting tips, pensions information or debt advice services?
- Do you help people with stress or health issues caused by finances?
If you help people manage their money and pensions, you are already helping to build financial wellbeing. It may form only a small part of your role or your organisation’s mission, but it’s so important to the people you help that they know they can come to you for help.
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How we can help your organisation improve financial wellbeing
Impartial money and pensions help
Our consumer service MoneyHelper offers free, impartial money and pension guidance, backed by government. It’s here to make money and pension choices clearer, and put your customers and colleagues in control with impartial help that’s on their side .
www.moneyhelper.org.ukOpens in a new window
MoneyHelper helpline:0800 138 7777
The UK Strategy for Financial Wellbeing
No one organisation can change all these things alone. It’s going to take a joined up effort from organisations across the UK. That’s why in January 2020 we launched aUK Strategy for Financial Wellbeingto set goals for 2030 and bring together organisations from a diverse range of sectors – from housing to health and HR – to work together to realise them.
Free, bespoke partnership support
Get free support to build local financial wellbeing: Our partnerships team are based near you, and can help bring your organisation an understanding of some of the local financial wellbeing challenges.
Get in touch to make a positive change for your employees, customers and service users.
We are here to help. If you have further questions that you feel aren’t covered in the resources on this page, get in touch with us atpartners@maps.org.uk.
Research and evaluation
Our insights team publish regular updates on what’s changing in UK financial wellbeing, and what works to improve it.
Explore our financial wellbeing research.
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We offer a wide array of free support to businesses including:
- A dedicated partnership manager based in your location, with managers in Northern Ireland, Scotland and Wales and regions across England.
- Bespoke support to help you build and implement your financial wellbeing strategy.
- Aselection of guidesOpens in a new windowavailable in English and Welsh, and in print, braille or audio format, for free.
- Ahelp with the cost of living hubOpens in a new windowfeaturing articles, tools, calculators and a printable guide to support your colleagues and customers.
- Our annualTalk Money Weekawareness campaign, which provides a platform for conversations about money in all walks of life.
- MoneyHelper offers a bi-lingual service via a variety of channels, with tools and helplines inEnglishOpens in a new windowandWelshOpens in a new window
- Guidance on life events, such as a section onlosing your jobOpens in a new windowor aboutdivorce and how this affects pensionsOpens in a new window
- Help employees plan for later life with a section dedicated topensions and retirement guidanceOpens in a new window
- Varioustools and calculatorsOpens in a new windowoffer personalised guidance for topics including debt advice.
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