Financial literacy’s impact on health outcomes: Is financial wellbeing a social determinant of health?

Have you ever considered the correlation between financial literacy and health outcomes ? Financial health is a unique factor that can have an effect on the patients overall well being. According to a study conducted by the University of Kansas, “financial capability can in fact be a social determinant of health and those who have it are more likely to have positive health outcomes.”

Financial health can be described as the overall state of our financial situation. There are key indicators used in the measurement such as savings, debt, investments, income, and expenses. How often have our financial situations caused stress? When the pandemic happened, and Covid was rampant, it directly impacted the financial well-being of some. For example, those who lost their jobs and were unable to provide for their family while they were sick were impacted significantly by the illness as well as the impact of their financial reality.

It’s vital to be aware of the long-standing consequences of financial illiteracy within our communities. Having access to financial education will allow better decision-making for individuals as well as their families and shift the trajectory generationally. Financial literacy can help improve health outcomes by allowing individuals to feel empowered in their decision-making and money habits, therefore reducing stress and anxiety.