Your Financial Health: Why It Matters
Financial health plays a vital role in our overall well-being. It allows us to be in control of our finances, make sound decisions, and secure our future. Let's explore why financial health is so important and how you can achieve it with simple steps and strategies.
The Financial Health Institute defines Financial Health as “The dynamic relationship of one’s financial and economic resources as they are applied to or impact the state of physical and mental well-being.”
4 Reasons why your Financial Health Matters:
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Reduces stress and improves mental health. Feelings of stress around money is a leading cause of anxiety and depression. A study by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in their lives. Financial health helps to reduce stress by providing a sense of control over one's financial situation.
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Provides Empowerment. Increasing your financial health creates pathways to your financial goals and independence. From buying a home, to exploring educational opportunities, and even accessing healthcare. A study by the Urban Institute reveals that financial stability also contributes to more stable relationships and robust social connections, enhancing overall quality of life.
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Builds confidence with financial decision-making. Life is full of tough financial decisions. Financial literacy, a key component of financial health, equips you with the knowledge to make informed decisions about your money. The FINRA Investor Education Foundation found that people with higher financial literacy are less likely to engage in high cost borrowing overall and maintain higher credit scores.
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Promotes long-term financial security. Building a strong financial foundation is essential for long-term financial security. According to the Federal Reserve, 39% of Americans can’t cover a $400 emergency expense with their savings. Lack of savings can impact your golden years as well. The Employee Benefit Research Institute reports that 40% of American workers have less than $25,000 saved for retirement. Financial literacy can help you prepare for unexpected expenses, avoid debt traps, and properly save for retirement.
Achieving financial health is a journey, but it's one that's well worth the effort. By taking proactive steps and staying committed to your financial goals, you can secure a brighter and more stable future for yourself and your loved ones. At Bank of Colorado we’re here as an ally on your journey. We have an expansive library of educational tools that you can explore online, and our knowledgeable team is ready to help guide you through the process if you prefer talking to a real person.
Start prioritizing your financial health today by exploring our quick and easy learning modules in our Financial Education Center, or stopping by one of our local branches!
Explore our Financial Education Center. To help you on your journey to financial health, we have great tools to help.
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