One of the fundamental lessons to be learnt in the wake of the COVID-19 pandemic is the importance of being financially healthy.
Speaking on this week’s episode of ECCB Connects, Assistant Professor of Utah Valley University, Dr Terrance Martin Jr., says that financial health is a subset of financial literacy. He defines financial health as the way in which an individual manages his or her monetary affairs. Dr Martin explains that there are different areas or dimensions of financial health including: the type of savings; approach to retirement, credit, homeownership, investment; and protection of assets.
Dr Martin further advises that personal financial health is not a “one size cap” that fits all individuals but that it depends on factors such as the age of the individual and how early in life the preparation process began. He also emphasises the importance of establishing and prioritising financial goals; determining one’s net worth; building an emergency fund and the importance of life insurance.
For the full discussion with Dr Martin, view this week’s episode of ECCB Connects.