What is it meant by financial well-being or financial health? They are concepts that, in a first approximation, can lead to think that their meaning is the same, but they are different.
Financial well-being is understood to be the state by which people can fully comply with the financial obligations they have, can feel secure about the future of their finances and are able to make decisions that allow them to enjoy life.
In turn, financial health can be defined as the relationship between personal, economic and financial situation and the impact it all has on a person’s physical, mental and social well-being.
Therefore, as can be seen, financial well-being is more focused on the financial situation of the person. However, although both concepts are different, they have in common the goal they pursue.
And, to this end, there is no doubt that financial education is a magnificent tool to achieve an optimal financial health and well-being, since the higher the level of financial knowledge, the better the financial decisions that a person makes will tend to be.
