Financial Wellness Month

It’s the start of a new month and a new year and a time when many people set goals for their physical health. It’s also the perfect opportunity to evaluate your financial health! 

January is Financial Wellness Month, a time to take stock of your financial situation and make any necessary changes to your habits to ensure you’re working toward your goals. Whether or not those goals include homeownership, AHFC's Mortgage Outreach Specialists Savannah and Patrick have information that can help you prioritize financial wellness.

Q&A with Savannah and Patrick

Q: How do you define financial wellness? Does your stage of life impact what this means?

Savannah: Financial wellness is all about having a healthy relationship with money. The idea is that you take control of your finances and are prepared for fixed and unexpected expenses. This involves not only having a secure income and budgeting that money effectively but also planning for the future by saving and investing. Financial wellness means you’re not only managing your current finances well but also preparing for financial security in the future.

Patrick: To me, financial wellness is about understanding how money works. It's a never-ending quest of trial and error that evolves as we age and gain more experience. People at different stages of life may define financial wellness differently because standards and needs change over time under different circumstances. Most importantly, financial wellness means having the freedom to make choices that allow you to enjoy life.

Savannah: It is true that financial wellness can look very different depending on your stage of life. For a young person, it might mean establishing an emergency savings account, paying off student loans, or beginning retirement contributions. For someone more established in their career, financial wellness could involve saving for a home, preparing to start a family, or increasing retirement contributions. For those nearing retirement, their goals may focus more on reducing debt, maximizing retirement contributions, and estate planning. Each stage involves unique considerations based on one’s financial goals and responsibilities

Q: Why is financial wellness important?

Savannah: Financial wellness is crucial because it can literally reduce stress and improve quality of life. By managing finances well, people are better prepared to handle emergencies, make major purchases (like a home) and plan for retirement. Knowing you are prepared when an unexpected expense occurs can feel very empowering.

Patrick: Financial wellness is crucial because many Americans are stressed, with finances being a top concern. Everything costs money and without financial wellness you may struggle to afford life’s basic needs, such as housing and food. This financial stress is directly linked to mental health challenges like depression and anxiety. By staying on top of your finances, you can reduce stress and live a happier, more fulfilling life.

Q: What are financial steps people can take to prepare for the homebuying process?

Patrick: Understanding how money works is essential, as it's not usually something many of us learn in school. While saving large amounts may take time, tracking your income and expenses helps you see where your money is going. This clearer picture allows you to make smarter financial decisions, reduce debt and build a stronger foundation for your financial wellness.

Q: What about people who are already homeowners? What steps can they take to improve their financial wellness?

Savannah: Whether you’re purchasing a new construction home or one that has withstood the test of time, unexpected expenses will come up. Developing an emergency fund just for repairs or maintenance is a good strategy.

Refinancing a mortgage loan is also quite common among homeowners to either lower the monthly payment or to use the equity built up over years of making payments. If you have owned your home for a while and think refinancing may be beneficial, contact your loan officer. (It is important to know your income and credit will be evaluated just as it is during a home purchase.)

Q: Does the HomeChoice™ homebuyer education class cover financial wellness topics? What can participants expect to learn?

Savannah: In the class we discuss how you can make a plan to meet your future goals. Oftentimes, participants take our class at the very beginning of their homebuying process, looking to gather more information to determine if this is an endeavor they are ready for.

This all starts with the process of budgeting and maintaining or improving your credit. When it comes to homeownership, these are two of the most important things. Maintaining a consistent budget will allow you to track the progress you’re making towards future financial goals, like homeownership. During the mortgage application, your credit is a key factor in determining your eligibility for the loan because lenders want to know that you have an established history of meeting your obligations.

We also discuss some of the mortgage loan options available to buyers.

Q: Are there any resources you recommend for people who want to learn more or invest in their financial wellness?

Savannah: A great resource to help you evaluate your own financial well-being is the CFPB’s Financial Well-Being Scale Questionnaire.

Patrick: And lastly, HomeChoice™. It’s free and we offer multiple classes in different formats throughout the year. Our number one goal here is to spread financial literacy to anyone who is seeking the information and promote AHFC’s mission of providing safe, quality and affordable housing for Alaskans.

Other Financial Wellness Resources

AHFC public housing residents and voucher holders have access to financial literacy resources and free online classes through Jumpstart. Learn more about budgeting, managing money and utilize financial incentives to help you achieve your career and education goals.

Interested in getting started on your homeownership journey? AHFC’s no-cost homebuyer education courses can equip you with the tools you’ll need! Sign up for an online HomeChoice™ webinar or attend in-person in Anchorage. If you aren’t available for a scheduled class, learn independently using Finally Home, an online home study course.