Financial education

What is the relationship between financial education and emotional security?

Understanding your finances better through financial education is the key to good emotional security, as well as stability in other aspects of life. Learn more here!

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Financial Education and Emotional Security

Educação Financeira e Segurança Emocional
Financial Education and Emotional Security

As the saying goes, money does not buy happiness. But it sure brings more security and tranquility to our lives, doesn't it? Thus, financial education and emotional security go hand in hand. 

That is, those who know their finances best will also better manage everything that comes in and out of money in their budget. And that could save you a lot of bad decisions and headaches regarding your financial and emotional stability, right?

So, of course, it's not easy to live with many worries and anxieties due to debt, lack of money or uncertainty about how to make your money work in your favor.

Therefore, we decided to bring in this article everything you need to know about financial education and emotional security, and how these two things are related in our daily lives.

So, if you've been feeling very insecure about money, and living in an unstable way because you don't know how to manage your finances well, don't worry! Because we're going to make everything easier to understand, just stay with us and check out our article below!

Because then financial education and emotional security will walk side by side in your life, and you will feel the difference.

Let's go?

What is emotional security?

Emotional security, as the name already says, is our ability to feel safe and calm emotionally. That is, it is when a person is not experiencing great stress, doubts and anxieties that directly affect their emotional and psychological well-being.

For those who are feeling emotionally insecure will constantly doubt their ability to identify and express how they feel. Furthermore, a person who lacks emotional security begins to sabotage himself, questioning all of his own decisions.

So, those who have emotional security will:

  • feel worthy of good things;
  • have the courage to try and face challenges;
  • to feel sufficient and worthwhile;
  • have self-esteem;
  • confidence to make decisions and new steps in life.

But how does all this relate to money? Well, by reading our list above maybe you already understood. Because those who have emotional security can make better decisions regarding their life in all aspects, including the financial one.

Thus, those who have good emotional security will have better results in relation to the organization of their financial life. Furthermore, this relationship is true on both sides.

That is, those who have financial education also feel more prepared and, consequently, more emotionally secure to make decisions about their personal and/or professional finances, right?

So, by building a good financial education you will be contributing to your emotional security. Thus, the financial world will no longer be a seven-headed animal, which seems impossible to understand.

Are you afraid of money?

Você tem medo de dinheiro?
Are you afraid of money?

Because many people feel insecure and avoid matters related to money and finance because they think it is too complex. Or because they are simply afraid of hurting themselves more than helping.

But as much as you try to escape financial education, money will always be present in your life. And money will be an important part of achieving your emotional security too!

For example, you may fear that the pursuit of money and income will cause harm, such as being overly ambitious. But those who understand their finances can control their budget and have good results, without becoming greedy just for that.

Furthermore, it is necessary to understand that not knowing about financial education can cause you more damage than knowing, for sure. So, the essential thing is that you understand that fear is normal, but it needs to be overcome.

That is, it is necessary to understand that in the journey in search of financial stability, negative situations and feelings may occur. It's part. But you have to face and learn from them, so you don't make the same decisions about your finances again.

For example, if you don't understand about interest rates and how personal loans work, you could end up taking out a disadvantageous contract. Thus, in the future, that initial loan may end up being too expensive, and you can accumulate debts and even get a dirty name.

So if you're still a little scared of the world of finance, that's okay. Start with one step at a time and there will come a time when money will bring you much more emotional security than fear, okay?

How does financial education contribute to mental health?

Como a educação financeira colabora para a saúde mental?
How does financial education contribute to mental health?

But how exactly can financial education contribute to this security and also to your mental health? Well, continue reading and check out what we have to say about it!

We explained earlier that money and emotional security go hand in hand. Thus, it is clear that a person with financial and emotional stability will have better mental health.

For in today's world we are subject to a wide variety of stresses and anxieties regarding money. And it directly impacts our lives and our psychology. In short, who can remain calm when he accumulates debts and/or has a dirty name?

Thus, financial education is the key for a person to lead a life without major surprises and stress, and without awakening major triggers that are harmful to their mental health. For example, those who control and understand their finances well do not go through situations such as:

  • Not being able to pay the installments of a loan or financing, and losing your property to creditors;
  • Being over-indebted and feeling stuck for not being able to pay the debts that increase in value every day;
  • Making bad financial decisions, contracting credit at a disadvantage or not knowing how to correctly organize your payments to pay off debts.

But these are just a few examples, as our mental health and emotional security are strongly linked to our financial situation. Because we all need to pay our bills and feel comfortable to enjoy our essential rights to housing, health, leisure and education.

So, for you to be even more convinced of the importance of financial education in your life, check out some research data below.

Financial education and mental health

According to a study conducted by the American Psychological Association (APA), finances are the number one source of stress for most people they interviewed.

Thus, people who experience deep stress about money can exacerbate mental health problems such as:

  • Depression;
  • Anxiety;
  • Fear;
  • Panic attacks.

So, the recovery of those who already suffer from a lack of good mental health becomes difficult when there are financial instabilities and a lack of emotional security. 

Thus, according to research, over-indebted people have up to three times the chance of developing serious mental health problems. Therefore, when there is no financial stability, there is no mental health:

  • 93% of people in poor mental health also spend more than they should;
  • 74% of people with fragile mental health also postpone paying their bills and create debt.

That is, those who are not well with their money also lack emotional security and poor mental health. But financial education can be the way to avoid all of this. 

Furthermore, we know that there are many other types of problems that we face in our personal, professional, love life, etc. And all of this also impacts our mental health. 

However, financial problems can make the situation even worse for a person who is already experiencing difficulties in other areas of life. So there is an increase in negative thoughts, fear, anxiety, etc.

Thus, a snowball situation begins, piling up problems and stress along with debt and lack of money.

But, as we said, it is possible to start to alleviate this situation: give importance to financial education as a factor of emotional security and mental health. So try to understand your finances and better organize your money and how you spend it.

10 best financial education tips

Financial education helps you create good goals and deal with your finances, keeping earnings always greater than expenses. Understand more!

And what is the relationship between the two concepts?

E qual a relação entre os dois conceitos?
And what is the relationship between the two concepts?

As we said, emotional security is a direct side effect of financial education. But there is also an inverse relationship. since by knowing more and better controlling your finances, you will feel more emotionally secure.

Because we live in a context highly dependent on money and good financial health. Since although money doesn't bring happiness, it greatly facilitates emotional security and peace of mind, doesn't it?

Thus, ignoring the importance of financial education is the same as trying to ignore our daily problems: there is no way! Because money is already part of everyday life and it is not possible to live without money.

So how about starting to pay more attention to your finances and the way you handle money? Because our relationship with money can also be a reflection of how we deal with decisions in various other aspects of our lives.

In short, those who take good care of their finances will also be able to take good care of their professional and personal lives, etc. Because it's all together in our everyday life. However, we know that having complete emotional security and mental health is not realistic, but you can always be at your best.

Thus, those who dedicate themselves to financial education better understand their own reality, current possibilities and future goals. After all, how can you set goals without better understanding your financial reality? Because only then can you have strategies on how to achieve your dreams.

Now, seek financial education for your emotional security!

For, as we said, everything in our life is side by side. Don't see money as an enemy, or life just as an eternal source of debts and unpaid bills. Financial education is the key to achieving emotional security, mental health and goals.

So, no fear of money, or thinking that financial education is complex and only finance experts can understand. So, start looking for reliable sources of information about finance, there are many free online courses and tips on platforms like Youtube.

So all you have to do is make up your mind and take the first step. Because currently there are many good opportunities to learn about financial education. But whether online, in free or paid courses, blogs, or even in conversations with family and friends, the important thing is to get started.

So, what are you waiting for? We hope that our article has motivated you to study financial education and seek a better relationship with your money. Thus, you get a more peaceful and stress-free life with debts, overdue bills, etc.

Because there will be knowledge and time left to use the money in the best way, as an ally. And you can be sure that your emotional security will improve, and your mental health will thank you! So how about checking below how to improve your relationship with money this year?

How to improve your relationship with money in 2021

Improving your relationship with money can seem complicated and difficult. But it is not! Then check out our tips to make your life easier.

About the author  /  Aline Saes

Master in Social History from USP. She is a freelance writer for various subjects. Always passionate about writing, her mission is to bring information to people in a simple and attractive way.

Reviewed by  /  Junior Aguiar

Senior Editor

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