Chat with us, powered by LiveChat

Why Should You Help Your Employees Manage Their Money?

Why should you help your employees manage their money?

 

Why should you help your employees manage their money?

 

Why Should You Help Your Employees Manage Their Money?

 

Despite the fact that the United States is one of the richest countries, we also have the greatest wealth inequality. 

Wealth is defined as the net worth of a family which includes things like income, savings, 401(k)s, and real estate. According to the Federal Reserve Bank of St. Louis, in 1989, the total household wealth in the U.S. was $32.87 trillion (2016 adjusted dollars). In 2016, the exact same measure amounted to $86.87 trillion. However, the wealth of the bottom 50% has decreased from an average of $21,000 to $16,000, now amounting to just 1% of the total wealth. To put it metaphorically, the pie of wealth is growing larger, but the distribution of its slices are being concentrated in the hands of a few. 

As wealth inequality increases, many Americans are struggling to stay afloat and cover basic needs such as health care costs and living expenses. This is due to wages not remaining balanced with the cost of living. 

Today’s real average wage has about the same purchasing power as it did forty years ago. Not surprisingly, the American Psychological Association reports that 62% of Americans are stressed about money.

The above factors combined with the lack of personal financial education creates the perfect storm where an employee is unequipped to manage their own money (or yours).

Personal finance curriculum is only required in the public school systems of 20 states. For adults to receive financial guidance from a professional, the individual must have a substantial net-worth or income in order to afford professional services. Access to this invaluable information is nearly impossible to attain, keeping many adults stranded in the realm of trying to figure it out while struggling to make ends meet. According to Fortune magazine, ⅔ of adult Americans cannot pass a basic financial literacy exam. We are failing to give Americans the fundamental tools they need to survive, let alone thrive.

Enter: Financial Wellness

Financial wellness plays a crucial and important role in the lives of individual employees, as well as collective organizations. Financial wellness programs provide a holistic support system to help employees identify their financial situation and define a path towards financial stability and success. Some of the key educational components of a successful program include:

  • A Personal financial assessment to help individuals identify their current financial situation. Many Americans feel doomed to living a life of financial stress and struggle without realizing that there are tools available to help them reverse course. Financial assessments enable employees to develop a unique, personalized roadmap to get them from where they are to where they wish to be.
  • Financial education empowers employees with the knowledge they need to make informed financial decisions for themselves and their families. Some of the premier financial educational resources – such as FinFit’s Ready University – gives parents the opportunity to share educational material with their children. FinFit’s program has courses that are appropriate for grades 4-12, helping families to develop solid financial foundations for their children. 
  • Financial coaching from certified financial counselors. This human interaction component, combined with the digital resources, allows employees to gain meaningful, individualized support to help them get on the path to financial success.

Companies who wish to see their employees thrive in the workplace recognize that this begins with employees appropriately manage their personal finances. The financial stress that many employees face impacts the company as well. It is reported that businesses lose $450 billion per year due to the financial stress of employees. Financial stress reduces productivity and often manifests into physical health ailments. Sometimes employees need financial resources beyond education and coaching. With 78% of employees living paycheck to paycheck, many Americans are up against financial challenges that require additional resources to help them get back on track. A holistic financial wellness program needs to offer not only the assessment and education, but also the opportunity for employees to solve their current financial challenges so they can begin to think about their future. Without tackling current financial challenges, we cannot expect employees to save or plan

Offering a holistic financial wellness benefit to employees will go far to reduce stress and elevate the financial health of your entire team. Employees that are financially healthy will have increased productivity and increased focus leading to higher levels of creativity and innovation for the company. When an employee feels that the employer truly cares about their wellbeing, they are motivated to bring the best they have to the table out of appreciation.

Innovative companies are created, and sustained, because they recognize that their most important investment is their employees. Millions of Americans struggle with managing their finances and it can cause chronic stress. This stress impacts their focus, productivity, physical and mental health. Helping your employees succeed will boost your bottom line, elevate the team’s morale and go far to ensuring the company’s ability to stand the test of time.

 

Comments are closed.

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

The FinFit Visa® Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A., Inc. FinFit Loans are not sponsored, endorsed, administered by, or associated with Central Bank of Kansas City, the issuer of the FinFit Visa® Prepaid Card, who has no liability in relation to FinFit Loans. Residents of Connecticut, New Hampshire, Rhode Island and Vermont are not eligible for the FinFit Visa® Prepaid Card. This does not constitute an offer or solicitation for the FinFit Visa® Prepaid Card to residents of those states.

The FinFit Visa® Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A., Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule. If you have any questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at (833) 519-3500 – 24 hours a day.

WageNow is fully funded and managed by an affiliate of FinFit.

A per-transaction fee of $5 is charged if and when an employee chooses to access their earned wages prior to payday. There are no other fees to your organization or your employees; WageNow is fully funded and managed by an affiliate of FinFit.

Residents of California, North Dakota, South Dakota, Tennessee and Vermont are not eligible for WageNow. This does not constitute an offer or solicitation for WageNow to residents of those states.

FinFit Loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. Loans subject to credit approval.

Residents of Colorado, Connecticut, Iowa, Vermont, West Virginia, Nevada and Massachusetts are not eligible for loans.

Nothing on this website constitutes an offer or solicitation for loan products to residents of those states.