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A Personal Definition of Financial Wellness

Each year, MIT Federal Credit Union awards Memorial Scholarships to support our members in their educational pursuits and honor former staff and volunteers. Each applicant submits an essay on a financial topic of their choosing. One of the 2026 recipients, Avonlea Radue, answered the question "What is your personal definition of financial wellness?" Learn more about MIT FCU scholarships here.

 

My personal understanding of financial wellness involves having enough knowledge and control over my finances to feel secure, prepared, and capable of making responsible choices. It does not mean being wealthy or never worrying about money. Rather, it means understanding how money works, managing it carefully, and making decisions that support both my current needs and my future goals.

 

Financial wellness shows up in budgeting, saving, avoiding unnecessary debt, and thinking ahead about major expenses. Budgeting means paying attention to how much money I have and how I choose to spend it. Saving is important, because it creates a safety net for unexpected situations. Avoiding unnecessary debt means being careful with loans or credit so that interest payments do not become overwhelming later. Finally, planning ahead involves thinking about large future expenses such as education, transportation, or living costs.

 

At this stage of my life, planning ahead is the most key element in my financial literacy. Decisions about education, career paths, and major purchases are getting closer, and understanding financial concepts now can help me avoid mistakes that could affect me for many years. For example, learning how student loans and interest rates work helps me think more carefully about how to pay for higher education and how much debt would be reasonable to take on.

 

My personal experiences have also shown me that money management requires planning and awareness. Even smaller financial decisions, like choosing how to spend money on hobbies, activities, or personal projects, can add up over time. Paying attention to these choices has helped me understand how quickly money can be spent if it is not planned out. In the past few years, I have started to think more about budgeting and making sure I prioritize what is most important.

 

I have also seen how financial planning can affect personal goals. When people manage money carefully, they are often able to invest in the things that matter to them, whether that is education, starting a business, or supporting activities they care about. Thinking about financial wellness now helps me realize that good financial habits can make it easier to pursue opportunities in the future instead of feeling limited by money problems.

 

Another reason financial wellness matters to me is that it reduces stress and creates a sense of independence. Money problems can cause a lot of anxiety, especially when someone feels unprepared to deal with them. Having a basic understanding of saving, budgeting, and planning helps people feel more in control of their situation. Even small steps, like setting aside savings or tracking spending, helps me to create a feeling of stability.

 

Overall, my personal definition of financial wellness is having the knowledge, habits, and planning skills needed to manage money responsibly and prepare for the future. At this stage of my life, developing financial wellness is necessary, as it helps me build independence, reduce stress, and create a strong foundation for the financial decisions I will face as I move into adulthood.

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