In a culture that increasingly encourages sharing and breaking stigmas, there’s still one conversation topic that’s often off the table: money.

A recent study found that religion, mental health and addiction are considered more suitable topics for conversations with friends than finances. Money is even a moot point for couples, with 40% of couples not knowing what their partner earns. And in a climate where finances can be a difficult topic, many feel unable to ask for help when they need it or get the know-how to improve their financial situation.

How do financial worries impact our lives?

Whether it’s having a savings target, budgeting for the month or paying off debt, being able to manage finances (or struggling to do so) can seriously impact our health and wellbeing. Based on data from over 10,000 users of the 87% platform, 1 in 4 employees are regularly having difficulties covering their basic financial needs and 1 in 3 are regularly stressed about their finances. This stress can affect other areas of our lives, such as causing strain on relationships and friendships, and the effects are particularly notable for younger workers. 39% of 18-25 year olds often struggle to make ends meet compared to 21% of people aged 55+.

While we are becoming more aware of the link between physical and mental health, the impact of financial health on wellbeing is less widely discussed. Using 87% data, we found poor financial security significantly increases the risk of depression, sleep difficulties, loneliness and reduces overall quality of life. This doesn’t just have consequences for individuals, but organisations too. It is estimated that money stress costs the UK economy £50 billion per year, and 17.5 million lost hours of work.

How can organisations support staff financial health?

Now more than ever, understanding financial wellbeing within organisations is an important step to promoting healthier workplaces. 68% of organisations feel employees' financial wellbeing has worsened since the pandemic, yet less than half of UK organisations have a financial wellbeing policy. Despite the effects of financial stress on health and productivity, many organisations are yet to invest in training and engagement in this area. There’s also demand for this support, with 4 out of 5 younger workers wanting financial education from their employer so they can build a lifetime of healthy money habits. 

While many staff may not be comfortable talking about budgets at the dinner table, leaders can have a big impact by opening up the conversation around financial health. Exploring initiatives with staff as part of a wellbeing strategy, including financial planning tools, insurance and opportunities for professional progression, can increase staff retention, lower work stress and be a powerful component of wellbeing policy. 

Using insights from the 87% mental wellbeing assessment, organisations can tailor their strategies to improve financial security, target groups that are in greatest need of interventions and get the greatest returns on their investment in employee wellbeing.