{"id":6618,"date":"2021-08-10T15:14:47","date_gmt":"2021-08-10T15:14:47","guid":{"rendered":"https:\/\/emoneyadvisor.com\/?post_type=thought_leadership&p=6618"},"modified":"2024-04-30T16:52:55","modified_gmt":"2024-04-30T16:52:55","slug":"financial-wellness-the-missing-piece-to-the-wealth-gap-puzzle","status":"publish","type":"thought_leadership","link":"https:\/\/emoneyadvisor.com\/blog\/financial-wellness-the-missing-piece-to-the-wealth-gap-puzzle\/","title":{"rendered":"Financial Wellness: The Missing Piece to the Wealth Gap Puzzle"},"content":{"rendered":"

According to a study conducted by the American Psychological Association, over two-thirds of American adults feel inhibited by money stress, indicating widespread economic discomfort that has likely only increased following the unforeseen events of last year\u2014think global pandemic, think social unrest1<\/sup>. While much of the country struggles to stay afloat, the 650 billionaires living in the U.S. experienced a collective $1 trillion increase in net worth over the last year2<\/sup>.<\/p>\n

So, the question becomes, how do we even the playing field? By turning our attention away from the symptoms\u2014poverty and debt\u2014and toward the illness\u2014a failure to prioritize and democratize financial literacy.<\/p>\n

Here’s what financial professionals should be thinking about in today’s economic climate.<\/p>\n

A Learned Lifestyle<\/h2>\n

We’re accustomed to reducing a person’s social standing to net worth and viewing wealth as a numbers game when in reality we should view money management as a single-player game of constant goal-setting and realignment.<\/p>\n

At eMoney, our definition of financial wellness calls for a mindset shift\u2014on both individual and institutional planes. If every person is a unique collection of their own experiences, opportunities, and interests, their finances should be as well. In perpetuating the class system narrative and fighting the wealth war with one-size-fits-all planning, we are instead asking people to shoehorn their identity onto an outdated view of financial success.<\/p>\n

There should be no universal standard of measurement for financial wellness; it’s a lifestyle, a state we are always reaching for and regularly adjusting to best fit with the other aspects of our lives. And while changing the way we talk about financial wellness is an essential part of the wealth gap puzzle, it’s only the tip of the iceberg. To remove the source of financial inequality, we need to make big changes to one of the primary building blocks of any society\u2014the education system.<\/p>\n

Honing Good Habits<\/h2>\n

Quality of education is a leading indicator of social and economic efficacy. Young people will become the leaders and professionals that shape the future state of the world. The knowledge they’re exposed to during their critical developmental years dictates their habits and at a collective level, determines society’s capacity for progress.<\/p>\n

In fact, a recent study out of Brown University revealed that routines and habits are cemented by third grade and unlikely to change significantly after age 93<\/sup>. That said, habit development is not isolated to schools\u2014the conversations and interactions taking place at home are equally important.<\/p>\n

The harsh reality is that we’re failing to socialize and reward the right money habits both in and out of the classroom. Today:<\/p>\n