Personal Finance and Wellbeing in Spain: A Current Analysis

in invest •  last month 

Personal finance is an issue that, beyond numbers and statistics, directly impacts our overall wellbeing. According to Intrum's European Consumer Payments Report, 30% of Spaniards feel worried about their financial situation, a figure that may seem high, but which places Spain seven percentage points below the European average of 38%. This report reveals not only the state of finances in the country, but its impact on people's daily lives.

calculator-385506_640.jpg
Image of Steve Buissinne

The Effect on Mental Health and Wellbeing

Worrying about money is not limited to economic issues; it also influences citizens' mental health. The study indicates that an alarming 31% of Spaniards have seen how their financial worries have affected their psychological wellbeing. This percentage, although lower than the European average, reflects a change in the collective mentality that deserves attention.

For example, countries such as Ireland and Norway suffer from higher rates (58% and 48%, respectively), which underlines the need to address these issues from a public health perspective.

Additionally, 36% of respondents in Spain acknowledge that their physical health status has been compromised due to a lack of financial resources. This figure resonates with the increasing pressure that the prices of essential goods and services place on households, forcing many to prioritise saving at the expense of their physical well-being.

Impact on Personal Relationships

Financial strain also extends to the social sphere. A revealing figure indicates that 33% of Spaniards feel that their financial problems affect their close relationships. This lack of ability to participate in social activities or go out with friends can lead to feelings of isolation. The effect on interpersonal relationships is an often overlooked aspect, and underlines the importance of addressing financial health from a holistic perspective.

The Current Economic Reality

Despite these challenges, it is important to mention that the economic situation of many families has been improving, according to the latest data from the Bank of Spain. The increase in income and the rise in the savings rate (21.2% of income) is a positive sign. However, this improvement is uneven. Although a sector of the population benefits from stability, a significant portion still continues to struggle with economic instability.

The effects of this polarization on financial well-being can have long-term repercussions, both on the social fabric and on the financial health of the next generations.

Final Thoughts

The importance of financial education has never been more crucial than in the current context. As families face difficulties, proper management of their resources and planning can be vital tools to overcome adversity. The ability to make informed decisions in terms of saving, investing and spending can help improve overall well-being.

Therefore, fostering a culture of financial education that empowers people to address their financial concerns is essential.

Promoting greater awareness about money management and personal well-being not only seeks to improve the financial health of families, but also to strengthen mental health and interpersonal relationships that are so critical in our daily lives. In conclusion, the link between personal finances and well-being is undeniable and deserves our continued attention and action.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

image.png