How credit unions can help unlock financial self-care

If, like a great poet and philosopher of our time, your mind is on your money and your money is on your mind, it might be time for some financial self-care.

Self-care as part of mental health is discussed pretty openly these days, but financial self-care is typically left out of that conversation. Think about it—when you imagine self-care, what do you picture? Perhaps yoga, meditation, a face mask, but likely not a balanced budget. Yet, when you think about the top stressors in your life, chances are, worries around money are top of mind. Finances affect every area of our lives, including our physical and mental health, emotional wellbeing and relationships with others. So, when financial wellness and financial self-care is ignored, it can become a domino effect.

This missing piece of the self-care puzzle is where credit unions can truly step in to make a difference. But what is financial self-care, and how can we help our members embrace it?

Unfortunately, financial literacy is not commonly taught in schools, leaving many young adults ill-equipped to navigate the complexities of managing money. As a result, individuals often find themselves facing financial difficulties stemming from a combination of poor decision-making, lack of knowledge, and challenging circumstances.

At Service Credit Union, we’re committed to improving the financial well-being of our members not just through products and services, but also financial literacy programs. This includes everything from free 1-1 counseling and educational resources, to “Bite of Reality” real-world budgeting experience for middle and high school students, to in-person seminars and virtual webinars. Our financial wellness courses cover a slew of topics from the basics of credit and homebuying, to having difficult conversations about money. In fact, my very talented colleague, our Community Engagement Specialist, Haley Maddox, specifically teaches classes on Money Mindfulness, as well as The Psychology of Spending, which were the inspiration for this post.

After taking Haley’s classes, I’ve learned that even if your budget looks balanced on paper (or your phone screen), that doesn’t mean you necessarily have a healthy relationship with money.

According to the Wolfsohn Financial Wellness Model, as taught by the Center for Financial Social Work, financial health is not just determined by income or assets. Instead, it comes down to an individual's relationship with money and with themselves. Our relationships with money can significantly influence our financial behavior, including our earning, spending, saving, sharing, and borrowing habits. As a result, these habits ultimately shape our financial circumstances.

Our financial behavior is influenced by our motivations, perceptions, attitudes and beliefs, which are all part of our personal story. By recognizing and evaluating these factors, we can determine which ones are beneficial and which ones are not. When we change our way of thinking, we increase our ability to change our behavior, and this change can have a significant impact on our financial wellbeing.

For example, while we may understand that it's unwise to make impulsive and unnecessary purchases, our reality is far from perfect. Since the invention of advertising, consumers have been made to feel a false sense of urgency in needing products, and needing them now. With the addition of social media, that false sense of urgency is greater than ever. Even if you are aware of every attempt to "influence" you, it can still trigger a sense of insecurity. That insecurity can then trigger FOMO, which can ultimately result in anxiety, lowered self-esteem, and a skewed self-perception.

Sure, it might not go that deep for everyone, but money is undoubtedly a complex issue, particularly in a society where success is often measured by financial prosperity. The fear of not measuring up can cause people to remain stuck in cycles of financial hardship in an attempt to achieve a perception of success, unsure of how to break free from these patterns.

Making informed financial decisions involves reflecting on our underlying motivations and considering the impact of our choices on our financial stability and overall wellbeing. It requires taking a step back to evaluate our true needs, both on a basic and emotional level, and determining if a particular purchase is aligned with our values and goals.

Many purchases are driven by a desire to fulfill a specific need, such as the need for acceptance or status, but in reality, they only provide temporary relief or satisfaction. By exploring alternative means of addressing our needs, such as engaging in new hobbies or activities, we may find more fulfilling and meaningful solutions that align with our values and goals.

Ultimately, taking the time to reflect on our underlying motivations and needs can help us make informed financial decisions that promote our long-term financial stability and overall wellbeing.

While I can’t possibly relay all of Haley’s wisdom here—you'll have to take one of her classes for yourself—here are a few tips for starting a financial self-care regimen:

Whether it’s through webinars, seminars, blogs or 1-1 counseling, your members should know that you’re looking out for their financial well-being. Invest in financial wellness resources and employees who are knowledgeable in financial self-care practices. After all, credit unions were made to promote the well-being of their members, and what better place to start than their financial well-being?