What is financial well-being and why is it important?
1 de November, 2025
Financial stability is one of the foundations of individual well-being and often one of the most vulnerable. The relationship between personal finances and well-being is increasingly recognized by experts and international organizations.
In a current context marked by economic uncertainty, inflation and significant challenges in accessing housing or credit, many people live with high levels of financial anxiety.
On World Savings Day, celebrated every year on October 31, we explain what financial well-being is, what its pillars are and why it should be a priority, not only for individuals, but also for organizations.
What is financial well-being?
Financial well-being refers to a person being able to meet their current and future financial obligations, feeling secure about their economic future and having the flexibility to make decisions that allow them to enjoy life.
The concept of financial well-being involves several aspects:
- Feeling in control of your personal finances;
- The ability to deal with unforeseen events;
- Being on track to achieve financial goals;
- Having the freedom to make choices with the money available.
Financial well-being is just one of the dimensions of individuals’ overall well-being, which is also influenced by physical, mental and emotional, professional and social well-being.
4 Pillars of financial well-being
Building a solid financial well-being is based on four fundamental elements:
- Have a budget: calculate your monthly income and expenses, identify where you can save, set goals (short, medium and long term) and monitor your budget regularly.
- Create an emergency fund: it is essential to be prepared for unforeseen events and, as such, you should have an emergency fund that ideally covers between 3 and 6 months of essential expenses.
- Seek specialized support: we don’t always have all the answers, and this is where having a personalized plan can help you define savings, investment or debt repayment strategies adapted to your reality.
- Planning for retirement: this period of your life may seem far away, but the sooner you start setting goals and savings instruments, the greater your peace of mind will be in the future.
Why is financial well-being important?
The impact of financial well-being goes far beyond the wallet. It affects how we feel, how we relate to others and how we plan for the future.
1 – Reducing stress and improving mental health
Financial stress is one of the main sources of anxiety and emotional exhaustion. When there is economic stability, there is a significant reduction in tension and apprehension, which contributes to better mental health and a higher quality of life.
2 – Healthier relationships
Financial problems are one of the most common causes of conflict in personal relationships. Balanced financial management promotes trust, reduces arguments and allows life projects to be built in greater harmony.
3 – Greater freedom and opportunities
Financial well-being gives you the freedom to make choices: change careers, invest in your personal and professional development, travel, buy a house or simply live with fewer worries.
4 – Positive impact on professional performance
Workers with greater financial stability tend to have higher levels of concentration, motivation and productivity. For this reason, many companies have already integrated financial literacy and personal finance management support programs into their extra-salary benefits plan.
In short, financial well-being is an essential component of personal health and balance. On World Savings Day, it’s worth reflecting on our habits, identifying opportunities for improvement and taking concrete steps towards a more stable and peaceful life.