Most benefit leaders want to do the right thing for employees. But when it comes to financial wellness programs, especially lending, there’s often an assumption shaping decisions:

Some needs are “essential.” Others are “nice-to-have.”

The danger is that this assumption can lead to programs that or govern employees’ choices without giving them the combination of immediate support, longer-term financial tools, and reasonable understanding that nuanced personal financial situations require.

The Problem with “Essential vs. Non-Essential”

In conversations with benefits leaders, we sometimes hear concern about how employees might use access to funds.

A common example:

“We don’t want employees taking loans for things like home improvements.”

On the surface, that sounds reasonable, but a privileged perspective is unintentionally baked in. When an executive hears “home improvements” they can automatically think aesthetic upgrades or nice-to-haves. For many employees, a home improvement can be a critical need, something like a leaking roof, a broken air conditioner in the middle of a heatwave, or accessibility modifications to their home. These aren’t luxuries. They’re health, safety, and stability issues.

I’d go a step further: whether a need is “essential” may not be the right question at all.

In FinFit’s financial wellness assessment¹, the most common financial goal members name for the next 12 months is taking a vacation. About 4 in 10 choose it, whether they’re financially healthy or struggling. But that’s not what they borrow for. Most FinFit borrowers use their loan to pay down existing, higher-cost debt, like credit cards, payday loans, or medical bills.

Those two facts aren’t in conflict. They’re a sequence. Among members who are financially vulnerable, 57% want to pay down credit card debt and nearly a third want to build an emergency fund. They aren’t choosing between stability and rest. They want both, in that order, and clearing high-cost debt today may be what makes saving for a trip possible tomorrow, without borrowing for it.

A vacation may not be essential, but rest, time with loved ones, and meaningful experiences are legitimate parts of a financially healthy life. Employers don’t need to rank those goals for their employees. The right program helps them handle today’s needs so they can reach tomorrow’s.

The Workplace Impact of Financial Friction

According to EBRI, 94% of companies say it’s their job to help their employees become financially secure. Employees agree, with 84% of respondents in a Morgan Stanley survey saying their employers should help them with financial issues. The US workforce seems to be aligned that a company’s financial responsibility to their employees extends beyond the paycheck.

But there’s more to considering an employee’s financial health than just doing the right thing. When employees are forced to delay or avoid necessary expenses, it creates:

• Chronic stress → reduced focus and productivity
• Absenteeism → dealing with emergencies or unsafe conditions
• Turnover risk → seeking higher pay or financial relief elsewhere

Every expense doesn’t qualify as essential, but whether employees have responsible options when financial needs arise is critical.

Where Traditional Benefit Thinking Falls Short

Many financial wellness programs offer one of two important pieces—but not both.

Camp 1: Education only

• Budgeting tools
• Savings education
• Retirement planning

These resources are valuable, but they can be disconnected from immediate financial needs. Education alone cannot repair a leaking roof or cover an unexpected bill. Without access to safe, affordable financing, employees may face difficult choices, including taking on additional debt, delaying necessary expenses, or fall behind on payments.

Camp 2: Access only

• Pay advances
• Emergency loans
• Short-term funding

These options can provide valuable relief when an immediate need arises. But access to funds alone isn’t financial wellness. When education and guidance are limited, generic, or treated as an add-on, employees may receive help with today’s expense without gaining the tools to strengthen their financial position over time.

A Better Approach: Access + Financial Wellness

The strongest programs don’t force employers to choose between immediate relief and long-term financial wellness. They combine responsible access to funds with substantive education, personalized tools, and support that helps employees make progress over time.

• Providing affordable access to funds
• Embedding guardrails without judging the purpose
• Offering substantive, personalized financial education
• Helping employees build healthier habits and lower debt
• Meeting employees in real-life situations, not idealized ones

Employees are already making these financial decisions. Access to an employer-supported program empowers them to address today’s need while building a stronger financial future.

What This Means for Benefit Administrators

For partners advising clients, this is an opportunity to elevate the conversation.

Instead of asking:

“Is this expense worthy of support?”

A more useful question is:

“Does our program give employees a safe way to address today’s need, improve their quality of life, and provide meaningful tools to improve what comes next?”

Helping clients understand the real-world context behind financial decisions builds trust and positions partners as strategic advisors, not just service providers.

Rethinking “Non-Essential”

A new roof isn’t a luxury.Neither is a functioning HVAC system. Or a safe home environment.

As employers evaluate financial wellness programs, the goal shouldn’t be to define the legitimacy of a financial need.

Rather, it should be to ensure employees have responsible ways to navigate the financial realities they’re already facing.

When employees are better equipped to manage both today’s needs and tomorrow’s goals, the impact can reach far beyond a single transaction—to their overall well-being, their work, and the organization as a whole.

¹ FinFit Financial Wellness Assessment, member responses as of May 2026.

Disclosures

Loans are issued by Celtic Bank. Loans subject to credit approval. Rates, terms, and conditions are subject to change at any time, without notice. Loan products, availability, and features vary by state. See application terms and loan agreements for more details.