Guide to the Financial Wellbeing Assessment - Naluri

The Consumer Financial Protection Bureau developed the Financial Wellbeing Assessment as a tool to help measure a person’s current financial wellbeing: how well their current money situation is providing them with financial security and freedom of choice today and for the future. 

This assessment does not ask specific questions about your financial details, such as income levels, net worth or credit score, because each person’s financial situation is unique and subjective. Financial wellbeing is when you:

• Have control over day-to-day, month-to-month finances
• Have the capacity to absorb a financial shock
• Are you on track to meet your financial goals
• Have the financial freedom to make the choices that allow you to enjoy life

That’s why people with the same income, financial experiences, or education can have very different levels of financial wellbeing.

Financial wellbeing plays a crucial role in overall mental health, and the relationship between the two is significant. As urban professionals navigate the complexities of modern life, various financial issues can exert substantial pressure on their mental health. 

The Link between Financial Wellbeing and Mental Health:

Numerous research studies have connected financial wellbeing and mental health. A Meltzer et al. (2011) survey explored the association between financial difficulties and mental health disorders. The research found that individuals experiencing financial strain were more likely to develop mental health issues like depression and anxiety. Financial distress can lead to increased stress levels, feelings of helplessness, and a reduced sense of control, ultimately affecting mental wellbeing.

Another study by Drentea and Lavrakas (2000) focused on the relationship between financial strain and psychological distress. The findings revealed that individuals facing financial difficulties experienced higher levels of psychological distress, including symptoms of depression and anxiety. Furthermore, financial strain was shown to exacerbate existing mental health conditions.

Common Financial Issues Affecting Urban Professionals:

1. High Cost of Living: Urban areas often come with a higher cost of living, including housing, transportation, and daily expenses. Urban professionals may need help to keep up with these elevated costs, leading to financial stress and impacting their overall financial wellbeing.
   
   
2. Debt and Loans: Many urban professionals carry significant debt, such as student loans, credit card debt, or mortgages. The debt burden can be overwhelming and cause constant worry, affecting mental health and overall financial wellbeing.
   
   
3. Job Insecurity: Urban professionals may face job instability due to company downsizing, industry disruptions, or economic downturns. The fear of job loss or difficulty finding employment can create financial uncertainty and negatively impact mental health.
   
   
4. Long Working Hours: Urban professionals often face demanding work schedules, including long working hours and high-pressure environments. Balancing work and personal life becomes challenging, increasing stress levels and potential mental health concerns.
   
   
5. Lack of Financial Literacy: Many urban professionals need help with financial literacy and may need more knowledge and skills to manage their finances effectively. This can lead to poor financial decisions, increased debt, and financial stress, ultimately impacting their mental health.

If you, or someone you care for, is experiencing financial distress from any of these issues, our health coaches are here to help you. Book a consultation with a Naluri Financial coach or chat with your dedicated coach if you’re already a member. 

Naluri empowers you to develop healthy lifestyle habits, achieve meaningful health outcomes, and be healthier and happier through personalised coaching, structured programmes, self-guided lessons, and health tools and devices. Download the Naluri App today or contact hello@naluri.life for more information on utilising digital health coaching and therapy to become a happier, healthier you.