More than 70% of lawyers report at least one sign of poor mental health in relation to their finances, a report by a financial education business has claimed.
Financial education business Wealthbrite has released its latest insights into financial literacy which found 61% of lawyers struggle with financial confidence and 72% report at least one sign of poor mental health in relation to their finances that could affect their ability to function at work.
The financial wellbeing in law review, which uses data from a survey and focus groups, found 61% of lawyers struggle with financial confidence and 34% of lawyers admit their performance is directly affected by money worries.
Taking answers from around 545 lawyers, 61% of lawyers ranked their confidence with personal finance as average or below average while 72% of junior lawyers considered themselves below average.
More than half (51%) of lawyers ranked their confidence with commercial acumen as average or below average which increased to 64% among junior lawyers.
Of the 71% who reported at least one sign of poor mental health in relation to their finances that could affect their ability to function at work, 50% reported feeling anxious, 23.5% said they experienced a lack of motivation, 17.7% said they suffered from sleepless nights and 8.8% said they felt depressed.
Read more
Of those asked, 82% of junior lawyers said they worried about money frequently. The review found ‘peak’ financial concerns were felt at NQ levels where 89% worried about money on a regular basis.
Carla Hoppe, founder and CEO of Wealthbrite, a financial education company, said financial wellbeing was not just a personal issue but a ‘business-critical challenge that law firms can no longer afford to ignore’.
She added: ‘Stressed, financially insecure lawyers are less productive and more likely to leave. That’s a risk no firm should be willing to take. Firms need to create a workforce that is not only resilient but empowered to drive results and impact the bottom line. that starts with financial confidence.’
Speaking to the Gazette before the review’s release, Hoppe, a former corporate lawyer, added: ‘Employers have a duty of care. If they are to be the source of financial earnings, firms must do more to help ensure employees understand their benefits and finances.
‘We know money is the number one cause of stress and anxiety in adults in the UK, that is a national statistic. As a sector, we are talking about mental health and wellbeing, and we are not talking about money. We are missing a big trick. This is a really significant part of what causes people real stress.’
Mental health charity LawCare provided tips for managing financial anxiety including creating a detailed budget, building an emergency fund, addressing debts and seeking support and advice.
Elizabeth Rimmer, LawCare CEO, said: ‘Many people struggle with issues like lack of sleep and anxiety as a result of financial stress. It’s important to understand that mental, financial, and physical wellbeing are all interconnected, and financial difficulties can significantly impact mental health.'
No comments yet