Education & upskilling

2.4.5 Financial literacy

Financial literacy skills are powerful, non-clinical interventions which can address economic stability, a core social determinant of health. Financial literacy is clearly linked to poor health outcomes: adults with low financial knowledge are more likely to experience financial strain, which leads to chronic stress. This persistent stress elevates the allostatic load on the body, contributing to cardiovascular disease, high blood pressure, and mental health issues like anxiety and depression (Yakoboski et al., 2022). Furthermore, poor financial literacy makes individuals less likely to purchase health insurance, more likely to forgo necessary medical care or prescriptions due to cost, and less likely to save adequately for retirement, directly diminishing their quality of life and longevity (Kopplin, 2024). The inability to navigate financial decisions—from choosing a health insurance plan to managing debt—exposes people to cumulative health risks that begin early and worsen with age.

Behavioural Change Approaches: Effective interventions for upskilling adults in financial literacy focus on behavioural change and just-in-time education, rather than just abstract concepts. Programs that combine financial education with one-on-one financial coaching have demonstrated significant benefits. For example, the Financial Success Program, studied in low-income single mothers, resulted in significantly reduced financial strain, a higher rate of quitting smoking and a reduction in avoidance of medical care due to cost compared to control groups (White et al., 2023).

Understanding Health Costs: These programs succeed by helping adults manage monthly cash flow, address immediate financial issues, and build financial confidence. Crucially, upskilling efforts must also focus on longevity literacy, ensuring adults understand life expectancy and the associated costs of aging and long-term care, leading to better retirement planning (Yakoboski et al., 2022).

Workplaces and Financial Organisations: Financial institutions, large employers, and FinTech companies can integrate financial literacy upskilling into their core business strategies. For example, employers can offer financial wellness programs as a key benefit, providing modules on debt management, retirement savings, and understanding the company’s health benefits packages. FinTech companies can design gamified, personalized educational apps that guide users through budgeting and investment concepts in a low-stress, accessible manner, often linking financial success metrics to mental well-being feedback.

Combined Health and Financial Literacy: Informing consumers on both financial and health literacy is important especially for older adults where both literacy types decline significantly after age 60 (Mitchell, 2025). Private insurers and wealth management firms can collaborate to offer integrated education on navigating complex health insurance choices, understanding long-term care insurance, and recognizing financial scams targeting the elderly. This upskilling is critical for maintaining financial autonomy in later life.

By linking a person’s financial security directly to their health preparedness, the private sector helps adults make informed, proactive decisions that not only protect their assets but also ensure they can afford the medical care and comfortable environment necessary to enjoy a truly long and healthy life.