Financial Wellness: A Foundation for Holistic Wellness for Women
When we talk about “wellness” these days, it often gets reduced to what we see in meme culture: a facemask and a glass of wine, or something similarly frivolous. And while I enjoy a facemask or a nice glass or wine from time to time, I think it’s important that we have deeper, more meaningful conversations about wellness. And, importantly, how financial wellness is an essential part of overall wellness, particularly for women.
The intersection of financial well-being with other areas of wellness is, in my opinion, a key component of a balanced, fulfilling life. A solid financial foundation provides the stability, security, and freedom to focus on other dimensions of life—physical, emotional, social, and mental health. And yet finances rarely come up when we discuss wellness.
Understanding Financial Wellness
Financial wellness goes beyond just income or wealth. There’s not a hard and fast number that means you’re financially well. Rather, it encompasses the ability to manage day-to-day finances, plan and save for future goals, and cope with financial shocks, all while maintaining a good quality of life. Unfortunately, only 31% of women report feeling financially well, compared to 53% of men.1 Additionally, a recent study found that 93% of women feel stressed about money.2 That is a shockingly large majority of women experiencing stress around finances. And stress around money can lead to a cascading host of serious situations that can further negatively impact wellness.
Why Financial Wellness Matters for Women
Health and Well-Being
Financial stress is one of the top causes of mental health issues. A study by the American Psychological Association (APA) found that 77% of people who experience high levels of financial stress suffer from physical health issues, such as headaches, insomnia, and digestive problems.3 For women who often bear the brunt of financial stress due to persistent wage disparities and caregiving duties – sometimes called the “motherhood penalty’ -- this stress can be particularly damaging to their health.2
Perhaps worse, some reports have shown that women remain in unhealthy or even “dysfunctional” marriages because of financial concerns.4
Women are also more likely to live longer, which requires more savings for retirement. National Institute on Retirement Security research highlights that women are 80% more likely than men to be impoverished at age 65 and older.5 That data point alone should shock everyone, in my opinion.
Empowerment and Independence
Financial independence can be a key driver of confidence and empowerment. Women with financial control can be better equipped to make decisions about their careers, families, and personal lives. Financial wellness enables the ability to pursue higher education, start businesses, and invest in their well-being without feeling constrained by financial worries. (And, it helps you afford that face mask and a glass of wine if you feel like it!)
In essence, having that financially sound foundation allows you the freedom to nurture your wellness in all manner of beneficial ways, from physical health to mental health, and beyond.
Holistic Wellness and Financial Wellness are Interconnected
Physical Wellness: Women who are financially stable are more likely to afford health insurance, access regular medical care, and invest in fitness and nutrition. Conversely, financial instability can lead to neglect of physical health due to the inability to afford gym memberships, preventive care, or healthy food.
Mental Health: As we touched on, financial stress is one of the largest contributors to anxiety and depression, especially for women. According to a survey by Bankrate, 46% of women report that money concerns negatively affect their mental health.6 Managing financial wellness may promote better peace of mind and emotional resilience.
Social Wellness: Financial freedom also enhances social wellness by allowing women to engage in hobbies, travel, and other group activities with friends and loved ones, which can also boost a sense of overall wellbeing.
Strategies for Building Financial Wellness
Financial Education
Studies show that women tend to rate themselves lower in financial confidence, even though they are taking on more financial responsibility within their families and households. One such study showed that nearly half of all women “consider themselves the chief financial officer of their household.7 I believe this delta between function and perception can be addressed through additional and ongoing financial education to promote both knowledge and confidence. Providing accessible financial education for women, starting at an early age, can equip them with the tools they need to take control of their financial well-being. This is one of the reasons I work with women, organizations, and even schools within my community to engage in informative dialogue.
Investment in Retirement and Savings
A key part of financial wellness is preparing for long-term financial security. Given that women typically earn less over their lifetimes and live longer than men, it is crucial for them to start saving early, invest in retirement accounts, and understand their options for social security and pensions.5 Financial planners and investment advisors can play a pivotal role in helping women map out their financial futures to ensure they are well-prepared.
Conclusion
I strongly believe that, for women, financial wellness serves as the foundation for holistic wellness. By addressing the financial challenges women face and providing the necessary tools for financial empowerment, we can foster better overall well-being. With financial stability, women can focus on their physical, mental, and social health—achieving a more balanced, fulfilling life.
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1 Ellevest Study: Ellevest Financial Wellness Study, 2022.
2 “93% of women are stressed about money. Building a cash reserve can help, experts say,” by Jessica Dickler, CNBC, March 2024.
3 APA Study: American Psychological Association, Stress in America Report, 2022.
4 “Money stress traps many women into staying in unhappy marriages,” by Stacy Francis, CNBC, August, 2019.
5 National Institute on Retirement Security: NIRS Report on Women’s Retirement Security, 2023.
6 Women are more likely to feel stressed about their finances than men – here’s what to do about it,” by Sarah Foster, Bankrate, June 2022
7 “Women Taking On More Financial Responsibility,” Allianz Life Study, 2024
