Money management is one of the biggest silent struggles employees could be facing. Because financial stress is often viewed as a personal matter, it is among the last reasons supervisors or managers consider for low employee productivity, but data proves otherwise. The 2021 PwC Financial Wellness Survey interviewed 1,600 full-time employed U.S. adults, 63 percent say their stress about finances has increased since the start of Covid-19. According to the survey, these individuals are twice as likely to take out a loan from their retirement or postpone retirement all together.
As an employer, offering financial wellness programs enables employees dealing with money dilemmas to get the critical support they need for personal and professional growth.
“Creating a safe space for employees to share their experiences with financial management and learn real-world techniques to change behaviors as it relates to money not only improves the individual, but the workplace,” said Brent Hines, Chief Development Officer at The Foundation for Financial Wellness.
The most valuable financial wellness program for any organization can be accomplished with the Foundation’s Flagship Course the 5 Essentials for Financial Wellness.
The 5 Essentials teaches employees to identify behavioral barriers and equip themselves with financial skills and preparedness such as.
Essential 1: Budgets, Savings and Debt presents the importance of emergency savings as a critical approach to cushion unexpected blows. Accumulating at least $1,000 in an emergency account is a great way to establish a feeling of safety when it comes to unplanned upsets.
This same Essential 1 Course also provides debt reduction methods that fit for a variety of individuals such as: the mathematical approach of paying off high-interest debt first or, the psychological approach for those who need to feel empowered to stay on course.
And let’s not forget to stay calm and properly manage our investments as presented in Essential 2: Investments – Getting Started & Retirement. Hopping out of the market during a big impact like COVID may seem like the safest thing to do at the time. But sticking to an investing goal that is well aligned with our financial lifetime phase is equally as important.
Whatever phase or crisis you’re in during your financial lifetime, the 5 Essentials for Financial Wellness can help you get on track, and stay on track, to build a solid foundation and achieve your life-long financial goals.
Foundation for Financial Wellness is an educational nonprofit that provides financial wellness courses and counseling to empower individuals to achieve their financial goals. Learn more about our employee programs.