WHAT'S YOUR FINANCIAL HEALTH ?
- KidVestors
- 4 days ago
- 6 min read
What you'll learn:
When was the last time you actually stopped and asked yourself, “How healthy are my finances… really?” Not just “Can I pay my bills this month?” but the bigger-picture stuff. Are you prepared for emergencies? Are you stressed about money? Do you feel confident making financial decisions, or does it all feel overwhelming?
That’s where financial health comes in. Just like physical health, financial health isn’t about being perfect. It’s about how well your money habits support your life, your goals, and your peace of mind. And the good news? Financial health is something you can measure, improve, and even teach early.
What Does It Mean to Be Financially Healthy?
Being financially healthy doesn’t mean you’re rich, completely debt-free, or living some Instagram-perfect lifestyle. Financial health (also called financial well-being or financial wellness) is really about stability, confidence, and control.
At its core, financial health answers questions like:
Can you handle unexpected expenses without panicking?
Do you have a plan for both short-term needs and long-term goals?
Are your spending and saving habits aligned with your values?
Do you understand how money works well enough to make informed decisions?
Someone with strong financial fitness might still have debt, but they know how to manage it. They might not earn a huge salary, but they budget well and save consistently. Financial health is less about how much money you make and more about how well you manage what you have.
Why Developing Financial Health Early Is Serious (and Why It Matters for Public Health)
This part often surprises people, but it’s important: financial health isn’t just a personal issue. It’s a public health issue.
Research highlighted by the Centers for Disease Control and Prevention (CDC) shows that financial instability directly affects overall well-being. Money stress is linked to higher levels of anxiety, depression, delayed medical care, food insecurity, housing instability, and long-term stress that impacts both physical and mental health.
In fact, the CDC includes economic stability as one of the key social factors that influence health outcomes and quality of life. When families struggle financially, the ripple effects don’t stop at the bank account. They show up in classrooms, workplaces, healthcare systems, and entire communities.
The Council for Economic Education (CEE) has also emphasized that financial illiteracy contributes to long-term instability and reduced community resilience. When individuals lack basic financial skills like budgeting, saving, and planning, they are more vulnerable to crises and less prepared to recover when life throws unexpected challenges their way.
That’s why developing financial health early matters so much. Just like teaching kids about nutrition, exercise, or personal safety, teaching financial skills early acts as prevention. Kids who learn how to manage money, plan ahead, and make informed decisions grow into adults who are better equipped to handle stress, avoid financial emergencies, and build stable lives.
When we invest in financial education early, we’re not just improving individual outcomes. We’re strengthening families, reducing long-term stress, and building healthier, more resilient communities. Financial health isn’t optional. It’s foundational.
The 4 Core Pillars of Financial Health
Think of financial health like a four-legged table. If one leg is weak or missing, the whole thing wobbles. These four pillars work together to support your overall financial wellness.
1. Save: Building Financial Security
Saving is the backbone of financial health. This includes emergency funds, sinking funds, and long-term savings.
Examples of healthy saving habits:
Setting aside money for emergencies, even if it’s just a little at a time
Saving for predictable expenses like holidays, back-to-school costs, or car repairs
Contributing to long-term goals like retirement or a child’s education
You don’t need thousands of dollars saved to be financially healthy. Consistency matters far more than the amount.
2. Spend: Intentional Spending for Financial Wellness
Spending isn’t the enemy. In fact, spending intentionally is a huge part of financial well-being.
Healthy spending looks like:
Knowing where your money goes each month
Prioritizing needs first, then wants
Avoiding impulse spending that leads to regret
Financial fitness doesn’t mean cutting out all fun. It means spending in a way that supports your life instead of stressing you out.
3. Borrow: Using Debt Wisely
Borrowing can either help or hurt your financial health, depending on how it’s handled.
Examples of healthy borrowing:
Understanding interest rates and repayment terms
Making payments on time
Using credit as a tool to build wealth, not a crutch
This applies to everything from credit cards to student loans to mortgages. Borrowing responsibly helps build confidence and stability, while unmanaged debt can quickly derail financial wellness.
4. Plan: Preparing for the Future
Planning ties everything together. Without a plan, even good habits can fall apart.
Healthy financial planning includes:
Setting clear short-term and long-term goals
Thinking ahead about major life events
Reviewing and adjusting your plan as life changes
Planning isn’t about predicting the future perfectly. It’s about being prepared enough to adapt when life throws curveballs.
Financial Health Score vs. Credit Score
Most people are familiar with a credit score, but a financial health score tells a much bigger story.
A credit score focuses mainly on borrowing behavior:
Payment history
Credit utilization
Length of credit history
Your financial health score, on the other hand, looks at the full picture of your financial life, including:
Savings habits
Spending behavior
Debt management
Financial planning and preparedness
You can have a great credit score and still struggle financially. And you can have an average credit score while being financially healthy overall. That’s why focusing only on credit can be misleading.
How to Determine Your Financial Health Score
The easiest way to understand your financial health is to assess it. A financial health score acts like a check-up for your money, helping you identify strengths and areas for improvement.
When you take a financial health assessment, you’ll typically answer questions about:
Your savings and emergency funds
Your spending habits
How you manage debt
Whether you have financial goals and a plan
If you’re curious where you stand, take our quick financial health assessment and learn your personal financial health score. Think of it as a no-judgment snapshot of where you are today and where you can improve tomorrow.
Awareness is always the first step to better financial wellness!
Financial Health and Stress: The Missing Conversation
One of the most overlooked parts of financial well-being is emotional health. Money stress affects sleep, relationships, confidence, and even physical health.
When your finances are unstable, everything feels heavier. When your financial health improves, stress often decreases, even if your income doesn’t change dramatically. That’s why building financial fitness isn’t just about numbers. It’s about peace of mind.
How KidVestors Helps Develop Financial Health Early
Financial habits don’t magically appear in adulthood. They’re learned, practiced, and reinforced over time. That’s where early financial education makes a massive difference.
KidVestors helps kids and teens develop financial health by teaching:
How to save and plan for goals
How to spend intentionally and avoid impulse decisions
How borrowing and credit work before real-world consequences exist
How to build confidence with money through hands-on learning
By introducing financial wellness concepts early, students grow up viewing money as a tool, not a source of stress. They build financial fitness in a safe, engaging environment that mirrors real life.
When kids learn how money works early, they’re far more likely to become financially healthy adults.
Financial Fitness Is a Lifelong Journey
Just like physical fitness, financial fitness isn’t something you achieve once and forget about. Life changes, goals evolve, and finances shift.
You might be crushing it in one season and need to rebuild in another. That’s normal. The goal of financial health isn’t perfection. It’s progress.
Checking in on your financial wellness regularly helps you:
Spot issues early
Adjust habits as needed
Stay aligned with your goals
Small improvements compound over time, just like good investments.
Your Financial Health Matters
Your financial health affects almost every area of your life, from stress levels to opportunities to long-term security. Understanding where you stand is one of the most empowering steps you can take.
Whether you’re just starting out, rebuilding, or teaching the next generation, focusing on financial well-being, financial wellness, and financial fitness sets the foundation for a stronger future.
If you haven’t already, take a moment to assess your financial health score, reflect on the four core pillars, and make one small change that moves you forward. Progress beats perfection every time.
Your money should support your life, not run it.
Ready to see what KidVestors can do?
FINANCIAL LITERACY FOR KIDS AND TEENS
