Financial education can significantly reduce financial stress and ultimately contribute to improved

A recent study has linked personal financial education, covering credit card usage, savings, and overall money management, to improved health outcomes. The study, published in the American Journal of Lifestyle Medicine, focused on low-income single mothers and found that participants who completed the Financial Success Program (FSP) experienced significant reductions in financial stress, fewer instances of avoiding medical care due to cost, and an increase in smoking cessation rates.

Nicole White, the principal investigator of the study, an associate professor of pharmacy at Creighton University, a PharmD, and a Certified Diabetes Educator (CDE), told Health magazine, "By alleviating financial stress, FSP graduates have improved their ability to plan ahead, making more informed financial decisions that enhance economic stability, reduce financial burdens, and ultimately promote overall health."

Below is an in-depth analysis of the study's process and its potential impact on the public.

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How Financial Education Contributes to Health Improvement

The research team at Creighton University set out to assess the impact of participating in financial education and coaching programs on the health outcomes of low-income single mothers residing in Omaha, Nebraska.

The study was conducted between April 2017 and August 2020, involving 345 working single mothers aged 19 to 55, whose incomes did not exceed 200% of the 2017 federal poverty level. Participants were randomly assigned to two groups: one group completed a nine-week Financial Success course, while the other group received no intervention.

As part of the study, White and her colleagues tracked participants' health indicators, including blood pressure, cholesterol levels, weight, and perceived quality of life. The study found that participants who completed the financial education course exhibited more healthy behaviors compared to those who did not complete the course. They reported:

A significant increase in constructive financial behaviors: setting and prioritizing financial goals, using written budgets, saving regularly, and paying bills on time.

A notable decrease in unhealthy financial behaviors: borrowing money, maxing out credit cards, paying late fees, and overdrawing bank accounts.

Significant increases in salary and job promotions.

A substantial reduction in financial stress.

A 5% decrease in tobacco use.

A marked decrease in avoiding medical care due to cost.

While the study focused on a specific group of women participating in a particular financial education program, White noted that the results suggest that interventions aimed at addressing financial instability or enhancing financial knowledge can have positive health impacts. Furthermore, education and coaching programs may yield similar effects on other low- and middle-income populations.

However, she added that the study does have its limitations. "I don't think the outcomes demonstrated by FSP are applicable to all financial education and coaching programs," White said. "But I do believe that other groups, beyond low-income single mothers, have the potential to benefit from participating in programs like FSP."

Other experts also see the study's results as having broad implications and point out that the findings are unlikely to be isolated.

Lois Ritter, an associate professor of teaching in the Master of Public Health program at the University of Nevada, Reno, who holds a Ph.D. in Education, an M.Ed., and an M.A. in Literature, told Health magazine, "A wealth of research shows that socioeconomic status is linked to health. Financial education empowers people to lead healthier lives. They can buy healthier foods, live in better communities, join gyms, enjoy massages, and access medical and dental care."

In fact, even though some programs may not offer the same curriculum, structure, or benefits as FSP provided for study participants, receiving any financial education is better than no education and can still yield health benefits, Kortney Ziegler, Ph.D., a CCSRE Race & Tech Practitioner-in-Residence and CEO of WellMoney at Stanford University, told Health.

Ziegler said, "Even though other programs may not have the additional benefits like this one, I think it still demonstrates how much financial education can benefit people's overall health and financial well-being."

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Other Ways Financial and Monetary Factors Influence Health Outcomes

According to the latest America's Stress survey, finances and money are among the top stressors reported by Americans. White noted that stress not only increases the risk of chronic diseases but also leads to psychological disorders, immune imbalances, and inflammation, both of which are root causes of many common chronic conditions.

A 2015 study confirmed this, highlighting the link between disease and stress and inflammation. The diseases mentioned include cardiovascular dysfunction, diabetes, cancer, and mental illnesses such as depression and anxiety.

"Furthermore, people facing significant economic pressure are more likely to smoke, drink, eat unhealthily, and be sedentary," White said. "These behaviors further increase the risk of chronic diseases."

Emily Koochel, a senior financial planning education advisor at Fidelity Investments' electronic money advisor company, who holds a Ph.D., AFC certification, and CFT-I certification, told Health magazine that being in a high-stress state for a long time leads to widespread uncertainty and financial anxiety, making it difficult to control worries, resulting in insufficient sleep, and even causing muscle tension and fatigue in the body.

"Stress has a huge impact. It has been reported that financial stress can exacerbate or even cause other illnesses: weight gain or loss, diabetes, hypertension, insomnia, and more," Koochel said.

But White added that receiving financial education, guidance, and training, such as the Financial Success Program, can provide financial skills, support, encouragement, accountability, and other resources to help increase savings and reduce financial stress.

She said that reducing accumulated financial stress not only affects the health status of low-income populations but also reduces financial stress as they achieve financial stability, "and subsequently reduces the wear and tear on the body."

"Similarly, as financial stability improves, people spend less time and energy on addressing financial needs, and their attention can shift to other areas, such as healthy lifestyles," White explained. "Combined, these effects may help control weight, lower blood pressure and blood sugar levels, and ultimately may reduce the risk of cardiovascular diseases."

Ziegler said that to access financial resources or education, people can look for training or information online, which is often free. He added that local universities, community colleges, and local health departments may also provide financial education and guidance.