Millions of Americans go through each day assuming that they know how to manage their finances. But studies have shown that almost half of American workers are deep in debt and struggle to save for such things as emergencies, retirement or education. This struggle can be attributed to an absence of understanding in key areas of financial education, which leads to the improper management of their finances.
It’s an odd question to ask someone off the cuff, “What does Financial Health mean to you?”
Some people may hear that phrase and focus on the health side, wondering about hospital bills or medical insurance. Others may quickly understand that this is really about where one is financially, such as if their bills are able to be paid, or if their child can go to college.
But financial health is all that, and much more. It’s a subject that can impact anyone at anytime. Right now 57% of Americans are struggling financially. This is approximately 138 million adults, and it’s not just the ‘poor’ that struggle with finances, it’s people from across the several demographics. (Source: Financial Health Consumer Segments.)
SAN ANTONIO, TX, June 20, 2016 — Execupay, the leading privately-owned provider of HR and payroll services and software, has selected FinFit, a nationwide leader in employee financial wellness, to provide a comprehensive suite of offerings to business owners that will assist their employees in achieving financial health and well-being. According to Forbes, employees spend 1-4 hours per week dealing with financial challenges while at work. This distraction, and the stress created by financial challenges, is a hidden cost and results in productivity loss to businesses. With FinFit, Execupay will provide the leading solution in Financial Wellness to their clients.
The message is clear that a company’s bottom line is at risk due to the financial stress that is impacting their employees’ health and productivity.
With over 70% of working Americans stating that financial stress is the most common cause of stress.* nearly half state that just dealing with their financial situation stressful.** Financial Stress has been the top stressor for employees' for almost 8 years.***
Productivity suffers when employees' are stressed about their finances. Left unattended, this stress may lead to unhealthy lifestyle behaviors that can potentially cause an increase in health risks. Employers bear the burden of the employees’ financial stress in terms of lost productivity and health plan costs. According to a 2010 study by the Federal Reserve, the cost of financial stress put a dollar value of $5,000 per employee per year.****
Financial Wellness is a path by which an employee has a grasp of where they are financially. They are also able to identify their fiscal goals and have a map that helps them to reach those goals. Some of these goals may be to buy a car or a home, or to save for college or retirement.
Advisers focus more on financial education as concern grows over retirement savings.
Although within the past year there has been an increase in awareness, it still remains that most people are not saving enough money for retirement. Much of this is due from higher consumer debt to addressing college tuition.
According to a Plan Sponsor Council of America Survey - only 1 in 5 employers (sponsors) have adopted a formal financial wellness program to help employees save effectively for retirement - outside of the standard DC education savings plan. This information, along with a change in demographics has increased a desperate need for more comprehensive financial education.
We all have those private goals in life like getting healthier, losing weight or saving money for that item you’d love to have – or a trip you’d like to go on. To reach these goals one must stay regularly motivated. But as we move through each day, the motivation to reach those goals may subside as daily life takes over.
If you are a part of the 70% of people living paycheck to paycheck, it is very difficult to think about long term goals when you’re just trying to make sure you have a roof over your head and food on the table. This mindset impacts all aspects of a person’s performance on the job. Many companies have a Financial Wellness Program to help their employees in this area so they can have peace of mind, which helps increase focus and productivity.
But as with any program, it only works when you are consistent at using it, and this requires change – something that many people dislike. But it’s easier than you think to stay motivated to shift those daily habits.