17 Financial Well-Being and Budgeting
What Is It?
Financial well-being: a condition wherein a person can fully meet current and ongoing financial obligations, feel secure in their financial future, and make choices that allow them to enjoy life (CFPB).
Why Is It Important?
- financial well-being and stress (find a research article relating these things)
- relate more to student population
- less about investing, more about financial well-being
Investing: the act of putting money, effort, time, etc. into something to make a profit or get an advantage, or the money, effort, time, etc (Cambridge Dictionary).
- Investing can work you towards financial freedom, but it’s important to note that it comes with risks. Before jumping into the investing world, make sure to educate yourself on the best way to start.
Investing vs. Saving
- While both are good options, it depends on your goals, risk tolerance, and financial situation.
- Saving is when you gradually put money away into a separate account, such as a savings account.
- Investing is when you use some of your money intending to make it grow. This can be done by purchasing assets like stocks, property, or shares in a mutual fund.
Lets compare the two:
| Saving | Investing |
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(Wells Fargo, 2020)
If you think investing may be the right decision for you, here are some potential benefits:
Tools You Can Use
- Budgeting Templates:
- Helpful Apps:
- Rocket Money — can connect to your bank account so you can track your spending, manage subscriptions, create budgets, and keep track of your monthly bills
- Credit Karma — Can be used to track your credit score, loans, and overall financial progress
- EveryDollar: Personal Budget — you can create custom budgets, track expenses, plan your spending, and set financial goals