What does it mean to have Financial Wellness? Financial wellness means creating a sustainable budget and following the 5 principles of financial literacy: earning, saving and investing, spending, borrowing and protecting (1).
Why is Financial Wellness important? Finances, for everyone, can be source of stress. Between part-time jobs, paying some or all of your tuition, taking out loans, you might be feeling overwhelmed. Developing good money management skills during college can set you up for a successful financial future after graduation. Financial wellness is important because, let’s face it, money affects everyone. The good news is, Penn State offers resources to help you create financial wellness! These resources will help you develop the skills to become financially independent and secure over time. The world of budgeting, credit, loans, and investments can be daunting to navigate on your own, so you shouldn’t hesitate to take advantage of the resources on campus. The Penn State Student Financial Education Center is here to help, and offers free educational resources for students.
How do we cultivate Financial Wellness?
We can cultivate financial wellness by staying on top of personal finances, which means addressing financial issues as they arise and saving extra money in order to create a more secure financial future. We can work toward financial wellness by keeping good records of our income and expenses, planning ahead and setting goals, and developing a habit of regularly saving money. Managing finances in a sustainable way can free us from living paycheck to paycheck or in chronic debt. Instead of being a source of stress, money can become a useful tool to help us live comfortably, invest in ourselves, and achieve our personal and professional goals.