Financial Wellness is a state of financial well-being allowing management of bills and expenses, debt payment, withstanding unexpected financial emergencies and plan for long-term financial goals.
Four Elements of Financial Wellness
|Security||Having control over day-to-day and month-to-month finances||Having the capacity to absorb a financial shock|
|Freedom of Choice||Having financial freedom to make choices that let you enjoy life||Being on track to meet your long-range goals|
4 Principles of Financial Wellness
Creating and sticking to a budget is the foundation. It provides a structure to manage day-to-day finances, prepare for financial emergencies and future planning.
- The employee assistant program (EAP) provides budgeting tools.
- Linkedin Learning offers budgeting courses and online education. MyMissouriState> Learning and Development Card> LinkedIn Learning
Managing long-term debt, and eliminating consumer debt can reduce barriers to saving, investing and long-term financial planning. Carefully managing credit can build your credit score, providing access to better borrowing rates for large purchases.
- Local services such as Consumer Credit Counseling of the Ozarks may be able to aid with debt consolidation.
Savings and Investments
Long-term savings and investments provide financial security and peace of mind for retirement planning. Short-term savings can cover expenses without having to increase your debt.
- Educational Community Credit Union can assist with banking needs, emergency savings goals, and provide competitive loan options for large expenditures.
- 403(b) and 457(b) deferred compensation plans can help you save for your retirement.
- Missouri Saving for Tuition (MOST), section 529 savings program can help employees save for costs of Eligible Educational programs for themselves or their dependents.
Protection and Insurance
Insurance or emergency funds can protect you financially from unexpected emergencies. Both can help prevent you from using long-term savings or going into debt.
- Short-Term disability coverage provides a benefit if you are unable to work due to an illness or off-the-job injury.
- Critical illness coverage provides a benefit if you or a covered dependent receives a medical diagnosis listed under the plan.
- Accident coverage provides a benefit if you or a covered dependent receives medical treatment related to an accident.
Savings programs may be enrolled anytime. Insurance coverage may only be enrolled within 31 days of a qualifying life event or during open enrollment (November 1 – December 1).