How Financial and Mental Health Can Collide With Work

By Walecia Konrad. April 28, 2025 · 4 minute read

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How Financial and Mental Health Can Collide With Work

Mental health and financial health typically go hand in hand. For years, studies have shown a link between stress over finances and an increase in mental health problems, including depression, anxiety, and substance abuse. And on the flip side of the coin, people with mental illnesses are more likely to have financial problems.

Recent research also supports this important connection. In SoFi at Work’s The Future of Workplace Financial Well-Being 2024 survey (which included 750 HR leaders and 750 full-time employees), 86% of workers said they feel increasingly stressed about their finances, up more than 10% from our 2022 report. They also reported that this stress has negatively impacted their sleep (48%), mental health (47%), physical health (36%), and motivation to pursue professional goals (37%).

Financial stress and mental health problems can lead to increased absenteeism and low productivity among your workers. As a result, it may make sense to help employees combat financial issues and mental health problems at the same time. Indeed, over the last few years, many employers have been exploring ways that financial well-being benefits and mental health benefits could work together to build the support and solutions employees need to weather financial and mental stress. Here are some lessons from those efforts that might benefit your organization.

Key Points

•   The majority of workers today are worried about their finances and feel unprepared for the future.

•   Financial stress impacts mental health, which can affect work performance and productivity.

•   Financial wellness benefits — like budgeting tools, debt counseling, and employee savings plans — can help workers feel more financially secure.

•   Personalized benefits that are relevant to employees’ situations can be especially beneficial.

•   Helping employees balance short-term needs with long-term security can also help boost financial and mental health.

Recognize How Financial Well-Being Programs Can Support Mental Health in the Workplace

Financial planning, budgeting tools, debt counseling, and financial education services have become increasingly popular employer offerings in recent years. These tools can help employees become financially stable so that they can move on to long-term savings and goals. In addition, gaining control over day-to-day financial challenges can help reduce the stress and anxiety associated with financial instability.

Now may be a particularly good time to emphasize the connection between financial and mental health wellness to your workforce. According to SoFi’s survey data, just over half of HR leaders recognize the impact financial stress has on employees’ mental health and two out of five said it impacts employees’ productivity and focus — an increase of 10% or more since SoFi’s last survey. What’s more, 74% of employees said these benefits impact their desire to stay with their employer.

Offer a Choice of Flexible Financial-Contribution Programs

Personalized benefits that are relevant to individuals’ situations can be especially helpful in reducing the financial stress employees are feeling right now. Depending on an employee’s personal situation, payroll deduction emergency savings accounts, student loan repayment programs, and/or debt management tools may be effective ways to help workers handle the financial stressors that may be contributing to depression, anxiety, and other mental illness.

This is a good time to take inventory and see what solutions might be missing from your financial well-being benefits. Questions to consider include:

•   Have you set up an automated emergency savings program for employees?

•   And if you have, are you sure your employees know it exists and how to participate?

•   Do you have a 401(k) matching program for employees paying off student loans?

•   Are your education and financial planning efforts aimed at all employees, not just those focused on long-term savings?

Help Employees Keep an Eye on Long-Range Goals, Too

Today’s high cost of living combined with immediate financial concerns like repaying student loans and credit card debt means that many employees are simply not saving enough for the future. In fact, SoFi’s financial wellness survey found that 45% of workers are stressed about not having enough money saved for retirement.

Despite the demand for short-term saving solutions, you may also want to help employees balance short- and long-term goals. Even for younger employees, you don’t want to take the focus completely off retirement and college savings benefits. And for employees who are closer to retirement, building savings is important, too. Helping everyone in your workforce, regardless of where they are, maintain a balance between short-term and long-range goals can be an important step to developing their overall financial well-being and lowering their stress.

The Takeaway

Human resource leaders, mental health professionals, and economists all agree that financial stress can have far-reaching consequences for your workforce, including increased mental and physical health issues and reduced engagement and productivity.

Given what we know about the connections between mental health and financial well-being, combining your mental health and financial well-being benefits to create customized packages accessible and meaningful to all employees can help ensure your workforce is ready for the challenges ahead.

SoFi at Work can help. We provide the benefits platforms and education resources that can enhance financial wellness throughout your workforce.


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