By: Kuldeepsinh Derola, Francis College of Engineering Well-being Leader

Financial well-being means making wise money choices, reducing stress, and ensuring a successful future. It comprises budgeting, saving, investing, and planning for home purchases and retirement. Poor financial habits can lead to stress and reduced productivity, while financial stability can encourage confidence and peace of mind.

Key Components of Financial Wellness:

1. Budgeting – Track your income and expenses to prevent overspending.
2. Savings & Emergency Funds – Set aside 3-6 months’ expenses for unforeseen events.
3. Debt Management – Prioritize high-interest debt to avoid financial strain.
4. Smart Investing – Grow wealth through informed investment choices.
5. Retirement Planning – Start early with 401(k) or IRAs for future security.
6. Financial Education – Stay informed to make better money decisions.

Steps to Improve Financial Wellness:

1. Assess your financial situation: Track your income (scholarships, jobs, aid) and expenses (rent, food, subscriptions), and identify spending habits and student loan obligations.
2. Set SMART goals: Define short-term (saving $500 in three months), medium-term (paying off a portion of loans), and long-term (graduating with minimal debt) financial goals.
3. Create and stick to a budget: Use budgeting apps and follow the 50/30/20 rule (50% needs, 30% wants, 20% savings/debt) to manage spending effectively.
4. Reduce and manage debt: Pay at least the minimum on loans and credit cards, pay extra when possible, and limit unnecessary borrowing.
5. Build an emergency fund: Save at least $500–$1,000 for unexpected expenses like medical bills or car repairs.
6. Plan for long-term growth: Improve your credit score, start investing (Roth IRA, index funds), and seek financial literacy resources.

Financial wellness isn’t just about having a stable income; it also requires effective money management skills. By adopting smart financial habits, you can achieve financial stability and reduce stress in the future. Start today!

As a Well-Being Leader, I can support you in fostering a healthy, balanced lifestyle. Here’s how I can make an impact:

• One-on-One Support: I can offer guidance on financial planning and stress management.
• Resource Sharing: I can connect you with tools and programs to improve financial health.
• Encouraging Healthy Habits: I can help you develop mindful spending habits and achieve long-term financial stability.

I’m available at Southwick Hall-250B (Deans’ Office) every Monday from 10:00 AM to 12:00 PM and Wednesday from 9:00 AM to 11:00 AM to offer a safe space for you to express your challenges.

References

Garman, E. Thomas, et al. Financial Stress and Workplace Productivity. Personal Finances and Worker Productivity, vol. 2, no. 1, 1996, pp. 157–164.

Consumer Financial Protection Bureau. Financial Well-Being: The Goal of Financial Education. CFPB, 2015, www.consumerfinance.gov.

Fidelity Investments. 10 Money Milestones to Hit Before 30. 2023, www.fidelity.com.