Financial literacy is a hot topic these days, especially among credit unions. This isn’t surprising, given that credit unions are founded to help their members achieve financial wellness.
But what is financial wellness?
You may think of financial well being in terms of savings and income when, in fact, a study by the Consumer Financial Protection Bureau found that financial well-being is more subjective than quantitative.
Ask yourself how you would rate yourself in the following areas:
- Do you feel that you are in control of your day to day financial decisions? The sense of control is generated by managing your money so that your current needs and obligations are met.
- Can you sustain a financial setback? Life can sometimes throw us a curve ball. If you have financial wellness you’ll be able to overcome the hurdle.
- Are you on track to meet your goals? Financial well-being will give you the ability to set goals for the future and attain them.
- Do you have the flexibility to make choices? People who are financially healthy can make choices about spending their money for enjoyment, entertainment or travel.
As CFO, I encourage my associates to become conversant in their financial well-being. What does it mean to you? I’d love to hear your thoughts (or tips) on achieving sound financial health.