Factors contributing to mental and financial wellbeing
Socio-economic factors
Socio-economic factors account for 54.5% of a person’s overall financial wellbeing. Health, unemployment, earning potential and life journey are the most significant socio-economic factors affecting financial wellbeing.
For example, newer mortgage holders (in the last 2 years) experienced a greater decline in financial wellbeing between April and September 2022.
Cumulative and compounding life events
Life events can directly impact financial and mental wellbeing simultaneously, including life transitions, relationship losses, family violence, work related and legal events. As the number of these challenging life events increase, so does the effect
on financial and mental wellbeing.
Community wide events
Relationships, social support and community connection can impact financial and mental wellbeing. People who feel they have no one to lean on are more likely to experience financial and mental health challenges. Withdrawal is a common response to
financial hardship.