Why financial wellbeing matters
What does it mean?
Financial wellbeing isn’t about how much money you have. It’s about how you feel when it comes to managing and understanding various aspects of your finances, and how you handle unexpected events that have an impact on your financial situation.
There isn’t one set definition of financial wellbeing, as it means different things to different people. It’s even likely to change meaning over time to an individual depending on their needs and circumstances in that moment.
However, the Money and Pensions Service define financial wellbeing as
“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 future.
In short: financially resilient, confident and empowered.”
We tend to refer to this definition when talking about financial wellbeing as it aligns well to the type of support we have available. It also draws out the importance of how resilience and confidence underpin a positive sense of financial wellbeing, while making the most of the money you have.
Why is it important?
Regardless of the financial situation you are in, it can be hard to juggle various aspects of your finances, and it can also feel very confusing at times.
The more confident you feel about your finances, the more likely you will find you have peace of mind. This could be the confidence that you have enough money set aside to cover you in times of need, an understanding of what your financial options are, or even the confidence that you’re in a strong enough position to face into the unexpected.
While we don’t like to think about it, it’s important to consider the unexpected expenses that come with an illness diagnosis or changes in your income following redundancy; or even economic market events like we’ve seen over the past few years with Covid and the cost of living crisis. Events such as these can be challenging to face into, and the level of financial uncertainty that often comes with them can have an impact on our wider health and wellbeing.
How can I improve my financial wellbeing?
Using resources that are available to support you day to day, can help build up your confidence and prepare you for the unexpected.
We have lots of support that can help you. Such as:
- Increase your knowledge and understanding of many different aspects of your finances by exploring our lessons on Be Money Well
- Focus on budgeting and saving where you can improve your financial position and prepare for the unexpected
- If you are a Scottish Widows customer, download the Scottish Widows app as this is a great tool to help you manage more of your finances in the one place
- Contact our digital skills helpline on 0345 222 0333 or explore our digital skills content on Be Money Well to increase your confidence when managing your finances online
- Use our Macmillan Cancer Support helpline by calling 0808 501 3600 if you have been impacted by cancer
- If you are struggling financially and are a Scottish Widows customer, contact our member helpline teams who can refer you onto Citizens Advice for support
If you’d like to hear more about the support we have available, and to hear our pension experts answer some of the most common questions we get asked, watch our recent webinar on financial wellbeing. You can find the recording of the session here.
Explore our lessons across Be Money Well to support your Financial Wellbeing
Taking on your pension
Learn how to get the most from your pension, no matter where you're starting.
- Pensions basics
- Am I on track?
- Combining your pensions
- Retirement options
- And more...
Financial essentials
Get to grips with the basic pillars of money management, including:
- Budgeting
- Saving
- Debt and credit
- Investing
- Protecting your future
Life's money moments
Put yourself in the best possible financial situation to prepare for life's events, like:
- Home purchase
- Getting married
- Bereavement
- Redundancy
- And more...