What is Financial Health? And do kids need it too?

Financial health refers to your current monetary situation or position, how you are faring financially. It needs to be monitored and planned for ahead of time, just like your heart health! People who have had a heart attack will monitor their heart activities in an on-going effort to stay on top of it. And further to that, if you take care of your heart ahead of time, by exercising and eating healthy, you prepare your body for optimum results and hopefully avoid disaster. Financial health is no different. Treat it like any other necessary health check up.

Finances are a large contributor to our overall wellness. A contented mind when it comes to money helps reduce worry, anxiety, stress and even fatigue. Here are some tips for how you can attend to it!

1. Make a budget. This is the first step to feeling on top of your situation. Building and following a responsible budget helps you to stay on track, no matter what your financial position is. You will spend with more thought and save with more purpose.
2. Build an emergency fund. The pandemic has taught us to expect the unexpected. You will be able to face emergencies with more confidence, and less stress if you have a cushion saved for them.
3. Manage your debt levels. It is tempting to use credit cards and gain access to funds via credit lines and loans. Having debt is fine. Having too much debt can be dangerous. Higher than average levels of consumer debt are expensive and they can become unmanageable. Stay in control of your debt load.

Financial health doesn’t apply just to adults. It applies to kids too! Did you know that kids start learning money habits by age 7? Whoa, that’s crazy right?We teach them how to make proper nutrition choices and how to live an active lifestyle. We must also teach them how to be financially healthy. The more they know and understand about money, the more confident they will be with it when they grow older. This is crucial for their overall health. More money awareness now = less worry and anguish later. There are 2 easy things you can do…

1. Talk to them. It is difficult for some people to open up about money and explain finances to kids, but this needs to change. Start the dialogue. Let them know how much things cost and the decisions and priorities you need to make everyday. They will be better off for it!
2. Let them make mistakes, early. When kids experience buyers remorse, it is a lesson that can help shape their money habits. These experiences are crucial to responsible development. Learning these understandings young will help them build smart and informed fiscal decision making skills.

Folks, the bottom line is… Financial Health is important. Having it will help you navigate all the ups and downs that you face with money. Take care of yours and help your kids take care of theirs!