What is financial resilience?

Financial resilience is the longer term approach towards your relationship with money. It is the ability to withstand life events and financial shocks that impact one’s income and/or assets. Events such as job loss, unexpected illness, and the COVID-19 outbreak all have a significant impact on an individual or household’s finances.

Coping with financial shocks and hardships means having the skills and resources to come up with short-term and long-term goals and strategies. 

Financial resilience requires planning and putting those plans in place. It involves the ability to manage day-to-day finances and to make ends meet in times of unexpected loss of income or unplanned expenditure. 

Financial resilience in times of crises and beyond can be developed through financial literacy and education. Join Enrich Financial and Empowerment Education workshops by clicking here.

Source: Dr Barbaara O'Neill PhD, CFP, 2011.