What is Financial Wellness?
Typically an individual/family is considered financially well when they have little or no financial stress, a strong financial foundation with about three to six months of emergency savings, adequate insurance coverage and established financial goals with a plan to pursue them. From the employer prospective it is a program designed to improve employees’ financial
behavior and outcomes while also driving business impact.
Why Does Financial Wellness Matter?
Financial stress has a direct impact on a wide variety of employee issues that impact a business’s bottom line including: stress related illness, medical costs, absenteeism, delayed retirement and workplace disengagement. The following statistics are quite alarming and contribute heavily to the issues mentioned above.
70% of Americans are living paycheck to paycheck.1
64% can’t cover a $1,000 emergency without borrowing money.1
84% of employees report having some degree of financial stress.1
24% higher healthcare costs in people who are stressed about finances.
How Does Financial Wellness Work?
Typically we provide an online confidential assessment for each employee to complete. The assessment is simple, only takes five minutes and requires no statements or advance preparation. This assessment provides each individual a personalized action plan, directing employees to workshops and webcasts. Based on a compilation of the assessment results, we develop a customized education program focused on key areas of interest among the workforce.
These education sessions delve into key financial topics and offer helpful action items that aim to improve financial habits. Often these education sessions are complimented by one on one consultations via a Financial Helpline or in person meetings with a financial advisor. This financial coaching addresses individual issues and helps employees take the steps needed to prepare for their future.
A majority of businesses are currently considering implementing a financial wellness benefit. It is very important that financial wellness be treated as a benefit with an incentive tied to it to encourage usage. Employees who have access to a financial wellness benefit are very satisfied with 98% considering financial education an important part of their benefits package.
For additional information on how to implement a financial wellness benefit for your organization contact:
Michael Gheen, CPA/PFS, CRPS
216.452.5940 | email@example.com