Bridging financial and mental health at work
Financial stress shows up everywhere — at work, at home, and even in our sleep. Money and finances have been a top stressor for the American people for almost a decade. (American Psychological Association Survey Shows Money Stress Weighing on Americans’ Health Nationwide) Yet these two issues—money and mental health—are too often treated as separate conversations.
The Costs of Financial Stress
Think about this: 72% of adults say they feel stressed about money at least some of the time, and almost one in five experience severe financial stress that leads to anxiety, depression, or sleep loss (APA, 2022).
That makes financial stress not just a personal problem—it’s an organizational one. When employees are worried about bills, student loans, or unexpected expenses, it shows up in their work and business performance. The Financial Health Network found that financially vulnerable employees lose an average of 15 hours of productive work each week because of money-related stress and distractions (Financial Health Network, 2022). That’s nearly two full workdays, gone. For organizations, the costs show up as lower productivity, higher burnout, and increased turnover.
And for many workers, the system itself adds pressure. Employees who earn lower wages and rely on social safety net programs, like SNAP, may turn down promotions and raises at work if higher pay means losing critical subsidies. These “benefits cliffs” illustrate how financial and mental well-being are tightly intertwined, influencing not only how employees feel, but also the decisions they make at work..
Why Financial Literacy Matters
Here in California, leaders take this issue seriously. In 2024, the California state legislature passed AB2927 legislation , requiring high school students to complete a semester-long personal finance course starting with the class of 2030–31. The message is clear: financial literacy isn’t optional, it’s foundational.
At UC Berkeley’s Institute for Business & Social Impact (IBSI), we believe the same applies at work. It’s not enough to give employees access to financial services; they need the education and tools to make smart, sustainable choices. When companies invest in financial literacy programs, they’re not just supporting employees’ wallets—they’re supporting their mental health, too.
Looking Ahead: Building Financially and Mentally Healthy Workplaces
Here’s the takeaway: financial health and mental health are inseparable. If we want workplaces where people can truly thrive, we can’t treat them as separate tracks. Addressing both, side by side, creates a stronger, more resilient workforce and a healthier society overall.
That’s why IBSI is integrating this focus into our Workplace Mental Health Initiative (WMHI) and exploring opportunities to expand it through a Center of Excellence—bridging financial and mental well-being to help people and organizations flourish together.
We’re always looking for partners who care about the same questions we do—how business can support both financial and mental well-being. If you have ideas or want to support what we’re building, reach out. Let’s integrate financial and mental well-being into the core of modern work.
