ROI Model

Essay on Personal Financial Literacy and Happiness
E. Thomas Garman

Personal financial literacy is at the very core of happiness in life. One can have a loving family, good friends, a satisfying job, and a supportive church. But living life with too many bills and no reserve savings account is stressful. Missing a few paychecks and facing an emergency vehicle repair or hospital bill can make life horribly stressful. These kinds of financial events negatively impact one’s health, relationships and work performance.

Financially literacy leads one toward positive financial behaviors such as creating an emergency savings account of $500 to $2,000, paying off credit card balances, and saving for retirement. These actions result in decreased financial distress and increased financial well-being.

Financially healthy employees make good benefits selections that save them money as well as save their employers money. When compared to employees with poor financial well-being, financially well employees have higher job performance, less absenteeism and short-term disability, better health, fewer wage garnishments, and less turnover.

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