Improving Health and Increasing Wealth: Research and Resources
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This document provides an overview of research findings on linkages between health and personal finances. Some key findings discussed include: - Healthier lifestyle habits are associated with greater lifetime healthcare costs but also longer life expectancy. - Periods of financial distress are linked to increased physical stress symptoms, while better self-control predicts both future health and wealth. - Engaging in regular physical activity is associated with higher wages, possibly due to increased productivity. - The Personal Health and Finance Quiz was developed to assess individuals' health and financial behaviors and collect data for ongoing research on the relationship between the two domains. Preliminary analysis of quiz results found a moderate correlation between health and financial behavior scores.
Improving Health and Increasing Wealth: Research and Resources
- 1. Improving Health and Increasing Wealth: Research Findings and Program Resources Barbara O’Neill, Ph.D., CFP® Rutgers Cooperative Extension [email protected]
- 2. Session Objectives • Describe recent research findings on health- wealth linkages • Describe the Personal Health and Finance Quiz • Learn about Small Steps to Health and Wealth™(SSHW) program components
- 3. Personal Introduction • Extension Specialist in Financial Resource Management at Rutgers University (NJ) • Rutgers Cooperative Extension employee for 38 years • CFP® for 32 years • Financial educator and author • Co-author of SSHW program
- 4. 2014 was a Big Year! 100-year anniversary of Cooperative Extension 10-year anniversary of Small Steps to Health and Wealth™ program
- 5. SSHW “Elevator Statement” Small Steps to Health and Wealth™ encourages participants to make positive behavior changes to simultaneously improve their health and personal finances.
- 6. Why SSHW? Americans Have “Issues” • Overweight/obesity • Physical inactivity • Heart disease and diabetes • Low savings rates • High household debt/bankruptcy rates • Inadequate emergency reserves
- 7. “The Greatest Wealth is Health” Virgil (BC)
- 8. Similarities Between Health and Personal Finance Both Health Advice Financial Advice
- 9. Health and Personal Finance Research Findings
- 10. Recent Health-Wealth Research Findings • The “cost” of better health is the need for greater wealth (higher total lifetime health care costs for healthier people) – More years of out-of-pocket expenses – Increased likelihood of chronic condition in later life – Increased likelihood of need for long-term care – http://crr.bc.edu/wp-content/uploads/2010/05/IB_10-8.pdf (Sun, Webb, & Zhivan, 2010) • Healthy living habits improve during tough economic times – http://www.stlouisfed.org/publications/re/articles/?id=2018 – http://libres.uncg.edu/ir/uncg/f/C_Ruhm_Healthy_2005.pdf (Ruhm, 2005))
- 11. More Research Findings • Associations between financial distress and physical symptoms of stress – http://ldi.upenn.edu/uploads/media_items/foreclosure-and-health- status.original.pdf – http://www.personalfinancefoundation.org/research/efd/The-Association- Among-Health-Race-and-Debt.pdf • Childhood self-control predicts research subjects’ future health, wealth, and other life outcomes Moffitt, T.E, Arseneault, L., Belsky, D., Dickson, N, Hancox, R.J., Harrington, H., Houts, R., Poulton, R., Roberts, B.W., Ross, S., Sears, M.R, Thomson, W.M., & Caspi, A. (2011). A gradient of childhood self- control predicts health, wealth, and public safety. Proceedings of the National Academy of Sciences, 108(7), 2693-2698.
- 12. More Research Findings • Smokers’ lower net worth vs. non-smokers – http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1747936/pdf/v013p00370.pdf • Negative association of BMI and income, especially among white females – http://www.nber.org/papers/w11343 • Positive impact of financial incentives on health behaviors – http://mcr.sagepub.com/content/65/6_suppl/36S.short • Widespread health insurance illiteracy – http://www.aicpa.org/press/pressreleases/2013/pages/us-adults-fail-health-insurance-101-aicpa- survey.aspx – http://www.washingtonpost.com/blogs/wonkblog/wp/2013/08/08/do-you-understand-health- insurance-most-people-dont/ – http://www.hks.harvard.edu/fs/bmadria/Documents/Madrian%20Papers/Consumers%20Misunderstan ding%20of%20Health%20Insurance.pdf
- 13. More Research Findings • Positive relationship between engaging in regular physical activity and labor market earnings • Regular exercise yielded a 6% to 10% wage increase • Possible reason: Fit employees are highly disciplined and more productive, which can lead to career advancement and higher earnings Kosteas, V.D. (2012). The effect of exercise on earnings: Evidence from the NLSY. Journal of Labor Research, 33, 225-250.
- 14. More Research Findings • Dor, Ferguson, Langwith, and Tan (2010) estimated overall annual costs of being obese as $4,879 for an obese woman and $2,646 for an obese man • Their analysis included non-medical indirect costs e.g., sick days, lost productivity, lower wages, life insurance premiums (i.e., not being able to qualify for preferred rates), and even the need for extra gasoline • The difference between genders was mostly the result of lost wages for obese women; obese women lost more income through lost wages than medical costs https://publichealth.gwu.edu/departments/healthpolicy/DHP_Publications/pub_uploads/dhpPu blication_35308C47-5056-9D20-3DB-157B39AC53093.pdf
- 15. Retirement Plan Savings and Health Behavior Study • Published in Psychological Science in 2014: http://pss.sagepub.com/content/early/2014/06/25/0956797614540467.abstract • An employee’s decision to contribute to a 401(k) predicted action to correct poor physical health indicators that were revealed during an employer-sponsored health examination • Employees who saved for the future in a 401(k) showed improvements in abnormal blood-test results and health behaviors about 27% more often than non-contributors did • Findings were attributed to individuals’ time-discounting trait that predicts long-term behavior
- 16. Information Search: Another Health and Personal Finance Link • 2015 Study: Individuals who engage in health search behaviors (e.g., reading nutrition details of food labels) are more likely to engage in financial planning activities • Financial planning was proxied through five different retirement readiness activities • N = 4,825 cases • Cognitive process had significant health-wealth relationship but direct physical activities (e.g., exercise) did not http://afcpe.org/assets/pdf/volume_26_1/pages_3-16.pdf
- 17. Personal Health and Finance Quiz http://njaes.rutgers.edu/money/health-finance-quiz/ • Believed to be FIRST combined online health and personal finance behavioral practice assessment tool; IRB approved at Rutgers • Three distinct uses: – Stand-alone self-assessment tool for users – To collect data for ongoing research – For educators to use for SSHW program evaluation (pre- and post-program score)
- 18. Health Questions 1 = Never 2 = Sometimes 3 = Usually 4 = Always Daily Health Behaviors: ___ 1. I eat breakfast before starting my day (e.g., work, school, or other daily activities). ___ 2. I avoid drinking sugar-sweetened beverages (e.g., regular soda and sweetened coffee, tea, or waters). ___ 3. I eat 3 ½ to 4 ½ cups of fruits AND vegetables daily. ___ 4. I get at least 7 hours of sleep per night. ___ 5. I eat at least 1-2 high fiber foods each day (e.g., whole wheat bread and pasta, oat bran, beans, lentils, peas) ___ 6. I eat and drink fat-free and/or low-fat dairy products. ___ 7. I avoid high-calorie salad dressings, gravies, spreads, and/or sauces. ___ 8. I eat foods that are low in fat and/or saturated fat. ___ 9. I get at least 30 minutes of aerobic and/or muscle-strengthening physical activity at least 5 days per week. ___ 10. I read the Nutrition Facts Label on food products before making a purchase Health Score: __________ • 9-16 points- Your health choices could be better, but don’t despair. It’s never too late to take action to improve your health. • 17-24 points- You are doing a fair job of managing your health practices and have taken some steps in the right direction. • 25-32 points- You are doing a good job and are above average in managing your health. • 33-40 points- You are in excellent shape managing your health. Keep up the good work! • Note: Items that you scored with a 1 or 2 are actions that you should consider taking in the future to improve your health.
- 19. Finance Questions Daily Financial Behaviors: ___ 11. I follow a hand-written or computer-generated spending plan (budget) to guide my spending and savings. ___ 12. I maintain an emergency fund equal to at least three months of basic, essential household expenses. ___ 13. I save the equivalent of at least $1 daily ($365 annually) in loose change in a savings account and/or or jar. ___ 14. I invest the equivalent of at least $10 daily ($3,650 annually) in investment accounts and/or retirement plans. ___ 15. I avoid payday loans, car title loans, pawn shop loans, cash advances, tax refund loans, and other high-cost debt. ___ 16. I owe less than 20% of my monthly net income on monthly consumer debt payments (e.g., credit cards, car loans) ___ 17. I eat at least two meals a day prepared at home instead of eating out (excluding traveling). ___ 18. I use advertisements, coupons, promo codes, sales, web sites, and/or discounts to save money on purchases. ___ 19. I live below my means (i.e., spend less than I earn). ___ 20. I make written “to do” lists or specific plans to organize my financial goals, spending, and/or daily activities. Financial Score: __________ Score Interpretation • 9-16 points- Your financial choices could be better, but don’t despair. It’s never too late to take action to improve your finances. • 17-24 points -You are doing a fair job of managing your personal finances and have taken some steps in the right direction. • 25-32 points -You are doing a good job and are above average in managing your finances. • 33-40 points -You are in excellent shape managing your finances. Keep up the good work! Note: Items that you scored with a 1 or 2 are actions that you should consider taking in the future to improve your personal finances. TOTAL (Health + Financial) Score: __________
- 20. Research Findings: Personal Health and Finance Quiz • Correlation of .463 between health behavior index (9 behaviors) and financial behavior index (9 behaviors) • Lowest average quiz score (health behavior): eating 3 ½ to 4 ½ cups of fruits and vegetables daily • Lowest average quiz score (financial behavior): following a spending plan • N = 942 https://www.onefpa.org/journal/Pages/MAR16-Propensity- to-Plan-A-Key-to-Health-and-Wealth.aspx
- 21. More Research Findings • Studied relationships of positive health and finance practices that involve – A daily time expenditure (physical activity, eating at home) – Avoidance of negative behaviors (SSBs, payday loans) • Weak but statistically significant, relationships • Women had higher correlations than men for practices involving routine activities that involve a time expenditure and avoidance of negative behaviors • Forthcoming publication
- 22. More Research Findings • Studied relationships between the practice of following a hand-written or computer-generated spending plan (budget) and positive health and financial behaviors • Positive and statistically significant relationships between budgeting and health and financial behaviors • Many quiz health items involve budgeting calories • Forthcoming publication
- 23. Next Data Analysis: Summer 2016 • Help us get as many respondents as possible: http://njaes.rutgers.edu/money/health-finance-quiz/ • Will test personal finance relationships with new nutrition label reading quiz item to build upon Carr et al. (2015) study • Continued study of the relationship of planning behavior, health, and finances
- 24. SSHW Program • Dozens of program materials developed by Rutgers Cooperative Extension, University of FL, University of KY, etc. • More program materials in the works • All Extension educators are encouraged to contribute to repository of materials on internal SSHW Web site • Two requirements: use the SSHW national brand on new products and share them with colleagues
- 25. SSHW Logic Model
- 26. SSHW Evaluation Methods • After-Class Evaluation Form • SSHW Pre- and Post-Test • Personal Health and Finance Quiz • SSHW Challenge Results • Anecdotes and Success Stories • 3-Month, 6-Month, 12-Month Follow-Up Evaluations • Other?
- 27. SSHW for Older Adults (FL) • Project leader: Dr. Martie Gillen (University of FL) Report from Duval County, FL (76 participants) 66% of respondents learned a lot from program 92% planned to make a positive behavior change to their health and/or finances using program information Walk more, shop wisely at grocery store, check nutrition food labels, add grains to meals, reduce sodium and sugar intake, cut down on cookie eating, not smoke, use salsa instead of ketchup, reduce intake of soft drinks 37% planned to share program information
- 28. SSHW for Youth (KY) • Project leader: Dr. Jennifer Hunter (University of KY) • Program title: Building a Healthy, Wealthy Future • Lessons available at http://njaes.rutgers.edu/sshw/internal/ which redirects to http://www2.ca.uky.edu/agc/pubs/fcs5/fcs5451/fcs5451.PDF • Evaluation = Completion of SSHW learning activities + knowledge gain + behavior change
- 29. Specialized SSHW Program Components • SSHW Youth Curriculum (U of KY): http://www2.ca.uky.edu/agc/pubs/fcs5/fcs5451/fcs5 451.PDF • SSHW Older Adult Curriculum (U of FL): http://njaes.rutgers.edu/sshw/internal/older- adults/Lesson-1-Living-Well-on-a-Shoestring-with- activities.pdf (Lesson 1)
- 30. SSHW Webinar https://learn.extension.org/events/1625#.U6CYX01OWM8 • Delivered 7/29/14 for eXtension • Archived for viewing 24/7/365 • Can take online quiz for CEU credits
- 31. Small Steps to Health and Wealth™ Workbook http://njaes.rutgers.edu/sshw/
- 32. SSHW Web Site Features • Daily motivational messages for 9 competitive SSHW challenges (2010-2013) • SSHW book marketing information • SSHW Blog (U of CA) • SSHW Podcasts and videos (Colorado State University) • List of refereed journal articles and abstracts http://njaes.rutgers.edu/sshw/
- 33. SSHW Workplace Wellness Newsletters • Available for free downloading on Rutgers Web Site: http://njaes.rutgers.edu/sshw/ • 26 newsletters: Introduction and 25 behavior change strategies • Introductory newsletter: http://njaes.rutgers.edu/sshw/pdfs/workforce- newsletter/Introduction.pdf
- 34. SSHW Animated Videos Ten animated SSHW videos are archived at http://www.youtube.com/user/moneytalkBMO
- 35. SSHW Web Site: 4 Downloadable Posters
- 36. SSHW Calculators
- 38. Educator Suggestion: “Walk The Walk” (Personal Behavior Change)
- 39. Why Change Your Behavior First? • Consider how hard it is to change yourself and you will understand what a challenge it will be to change others • To have a success story to share with others and to be a positive role model
- 40. “Street Cred”: I Lived SSHW and “Walked the Talk” • BMI of 27 (overweight) to normal weight • Lost > 30 lbs. and 22% of body weight • Fit physical activity into 3-hour R/T commute • Continued wealth accumulation strategies
- 41. Key Take-Aways • There are many similarities between health and personal finances • Personality characteristics may be a common factor • The Personal Health and Finance Quiz assesses both aspects of life • SSHW program materials are widely available • Change yourself before trying to change others