How financial wellness can impact your mental health

Has your mood ever changed after checking your bank account? It’s a common experience — your financial situation can have a major impact on your mental health, for better or for worse.

Think about it: when money’s tight, stress levels often skyrocket. That stress can seep into every aspect of your life, affecting your relationships, work, and physical health. Recognizing the link between your financial wellness and mental health is key to understanding ways to improve both areas of your life.

What is financial wellness?

Financial wellness isn’t just about how much money you have — it’s also about how you manage and feel about your financial situation. To get a sense of the state of your financial well-being today, ask yourself these questions:

Do I know how to manage my regular expenses?
Do I spend within my means?
Am I prepared for financial emergencies, and to what extent?
Have I set practical savings and retirement goals?
Do I know how to manage my debt, and do I have a plan to pay it down?
Do I feel confident and empowered when making financial decisions?

If you answered “yes” to all of these questions, that’s great! If not, that’s perfectly okay, too—and your benefits are here to support you. Take some time to learn more about financial wellness and read on to see how your benefits can help.

How are financial wellness and mental health related?

Recognizing the ripple effects of mental health can help explain why it’s so important. These conditions impact personal well-being and can spill over into physical health, relationships, work performance, and overall quality of life.

There are a lot of factors in play, but new research is continuing to show the link between mental health and financial wellness.

Since 2018, the Financial Health Network, a nonprofit financial services consultancy, has conducted the Financial Health Pulse survey. The survey asks thousands of people across the United States to evaluate their financial situation based on their spending, saving, borrowing, and financial planning habits.

In 2025’s survey, 7 in 10 respondents were either categorized as “Financially Coping” or “Financially Vulnerable,” a number that the researchers described as “stubbornly persistent” in the 8 years since they started writing this report.

The same research highlighted that as financial health declined, respondents also reported decreased mental and overall health. As financial health declined, individuals were also more likely to forgo necessary medical care, which is where your benefits can help improve your well-being.

By understanding the connection between mental health and financial wellness — and the impact that both have on every other area of life — you can better equip yourself to find support for both.

How your benefits can help

There’s a good chance you have access to health insurance benefits specifically designed with your mental health and financial wellness in mind.

Here are some ways your benefits may be able to support you.

Prescription savings: If you need medication to manage a mental health condition, your health insurance benefits may help cover some or all of the cost of prescription medications. Take a look at some prescription savings tips to learn more.
Preventive care: Many health insurance plans include coverage for preventive care services, such as annual wellness visits and screenings. These services can help identify potential health concerns early on, allowing for timely intervention and treatment.
Telehealth: In recent years, telehealth services have become increasingly available and accessible through health insurance plans. These virtual appointments allow you to consult with healthcare providers from the comfort of your home, making accessing mental health care easier, especially for those with busy schedules or limited mobility.
Employee assistance programs: Some employers offer employee assistance programs, or EAPs, that provide confidential counseling and support services. Both employees and their families can usually use EAPs for a wide range of personal and work-related issues, including mental health concerns and financial services.
Tax-advantaged accounts: Many health insurance plans offer tax-advantaged accounts, like Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), which can cover eligible healthcare expenses, including mental health services and prescription medications. Contributions to these accounts are made with pre-tax dollars, reducing your taxable income, and providing potential savings on healthcare costs.
In-network providers: Health insurance plans often have networks of healthcare providers, including mental health professionals, who have agreed to accept negotiated rates for services. You can take advantage of discounted rates and lower out-of-pocket costs by seeking care from in-network providers.

Remember, your benefits are here to help you invest in your health and happiness now and in the years to come. By leveraging what you have access to, you can take proactive steps to prioritize your mental health and financial stability.