Background and objective. The relationship between income and health in late life is well established, but the link between subjective financial wellbeing (SFW) and self-rated health (SRH) has been relatively ignored, especially among elderly in Europe. Adopting a longitudinal person-oriented analytical approach this study investigates the relationship between SFW and SRH in late life in Italy. Materials and methods. Analysis of the European Statistics on Income and Living Conditions survey (EU-SILC) for the period 2010–2013 in Italy examined these relationships at ages 65–78 (N = 1268). Latent class growth analysis and growth mixture modeling were used to identify latent trajectories of SFW. Post hoc analysis of variance examined how SFW latent groups differed in terms of SRH across time. Results. A three-group latent trajectory model fitted the data best. The three SFW groups were named average-decreasing (n = 238), low-stable (n = 216), and high-stable (n = 814). Repeated measures analysis of variance indicated a significant multivariate effect of SFW latent trajectory class on SRH, controlling for age, gender, and presence of chronic diseases. Post hoc analyses revealed that levels of SRH in the high-stable SFW group remained the highest compared to the other two groups and did not decrease over time, while the average-decreasing group showed a decrease in SRH levels. Conclusions. Results suggest that in late life longitudinal negative changes in perceptions of financial wellbeing may occur together with decreases levels of self-reported health. Future research on health inequalities in elderly should pay specific attention to the link between financial wellbeing and health from a self-reported perspective.