AllyMauch, Author at Best Money Moves

How Does Financial Wellness Affect Health?

What Is Financial Literacy and Why Is It Important?

3 Financial Stressors Affecting Every Generation

If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.

Millennial Financial Stress Statistics 2019

by AllyMauch | Sep 9, 2019 | Blog

Millennial financial stress statistics 2019. Here’s how student loans, housing costs and savings are affecting the millennial generation.

Based on the most recent data, Millennials are now the largest generation in the workforce, surpassing both Baby Boomers and Generation X. Burdened with student loan debt, high costs of living and savings struggles, Millennials are also some of the most financially stressed employees.

Nearly two-thirds of Millennials feel like they are doing worse financially compared to their parents’ generation and 76 percent find it stressful dealing with their financial situation — and this stress is only getting worse over time.

Millennials and Student Loan Debt

The U.S. is dealing with a student loan debt crisis, with total debt reaching nearly $1.6 trillion. Millennials are dealing with the brunt of this crisis — 29.1 million student loan borrowers are under the age of 39, more than any other generation.

According to research from PwC, nearly half of Millennials have student loans and 80 percent say their debt has a moderate or significant effect on their other financial goals. When asked what benefits they would like to see from employers, more than a third cited a student loan repayment benefit.

In another survey, Millennials admit to putting off building an emergency fund, saving for retirement, buying a home and getting married due to student loan debt.

Housing Costs and Millennial Financial Stress

In addition to — and in conjunction with — student loan debt, millennials face lower incomes and higher housing costs than the generations before them, making the rising costs of living a major financial stressor. Many Millennials graduated during a recession, and they still make 20 percent less than Baby Boomers did at the same stage of life.

Only 36 percent of Millennials say that their compensation is keeping up with the rising cost of their living expenses, a number that is even lower for Millennial women. Lower incomes and higher living costs make it difficult for this generation to maintain a comfortable standard of living while paying off debt and attempting to save for the future.

Millennials Have Inadequate Savings

Not having enough savings for unexpected expenses is one of the top concerns for Millennials, with 62 percent saying they are most financially stressed about their lack of emergency savings. This, combined with the aforementioned issues of debt and living costs, paints a pretty bleak financial picture for Millennials.

Only one in four Millennial employees say they would be able to meet their basic expenses if they were out of work for an extended period of time and 63 percent consistently carry balances on their credit cards. In addition to struggles with emergency savings, Millennials’ retirement savings are taking a hit — 24 percent have already withdrawn money from their retirement funds to pay for other expenses.

Half of Millennials have reported that financial worries affect their productivity at work, making financial stress a problem for employees and employers alike. Financial wellness programs like Best Money Moves can help alleviate the problem. Best Money Moves is mobile, gamified and easy-to-use — perfect for millennials. It provides practical, unbiased help so employees can make smarter financial decisions and manage the debt they have.

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If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.

How Financial Stress Affects Gen X at Work

by AllyMauch | Sep 4, 2019 | Blog

How financial stress affects Gen X at work. Gen X has the most overall debt compared to any other generation and they’re bringing their financial stress to work.

Gen X — roughly those between the ages of 38 and 58 — is often cited as the “forgotten generation” sitting between the more famed Millennials and Baby Boomers. However forgotten they may be, those in Gen X are facing a whole host of unique financial stressors that employers need to address.

In addition to carrying the most credit card debt and being the least happy at work compared to all other generations, Gen Xers are worried about being able to retire and only 60 percent feel confident in their finances. Below, we break down the top financial stressors affecting Gen X workers.

Gen X’s Credit Card Debt Is a Big Part of Their Financial Stress

Gen X has the most overall debt than any other generation, a significant portion of which comes from credit card debt. Those between the ages of 45 and 54 have an average of $9,096 in credit card debt, and people who are 45-44 have the second-highest level of debt — $8,235. Because credit card debt typically carries higher interest rates than any other debt, the debt problem facing Gen X is particularly harmful.

To make matters worse, a study from PwC found that a majority — 60 percent — of Gen Xers consistently carry balances on their credit cards and 2 in 5 find it difficult to make their minimum credit card payments on time each month.

How Financial Stress Affects Gen X at Work

Gen Xers also report feeling the least happy at work and a quarter note better job security as their top priority for achieving future financial goals. A mere 68 percent of Gen X workers feel happy at work, compared to 74 percent of boomers and 75 percent of Millennials

This discontent at work stems from a variety of sources, including a lack of respect from employers, limited opportunities for upward mobility and sparse management and development skills training. Further, Gen X’s workplace unhappiness directly connects to their financial stressors — about two-thirds say that their compensation at work is not keeping up with the rising cost of their living expenses.

Financial Stress and Retirement Savings

Gen X is advancing quickly towards retirement, but 67 percent say they are not confident that they will be able to retire when they want to and one-third have already withdrawn from their retirement funds to cover expenses.

More than half of Gen X report feeling significantly or somewhat behind on their retirement savings and 18 percent do not plan to retire at all, according to a survey from MetLife. Compared to Millennials and Baby Boomers, these numbers make Gen Xers the least secure in their retirement plans.

Gen Xers note financial matters as their main cause of stress, making financial wellness an essential workplace conversation given the stressors outlined above. Programs like Best Money Moves can help alleviate the problem for both employees and employers. Best Money Moves is a mobile, gamified and easy-to-use financial wellness program. It provides practical, unbiased help so employees can make smarter financial decisions and manage the debt they have.

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If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.

The Top 3 Financial Stressors Affecting Gen Z

by AllyMauch | Aug 26, 2019 | Blog

The top 3 financial stressors affecting Gen Z. Gen Z is both the youngest and largest generation in the U.S., and they are beginning to enter the workforce with a whole host of unique financial stressors.

Generation Z — the generation immediately following Millennials — is the latest group entering the workforce, but work and money are already at the top of their list of stressors. According to the American Psychological Association, 81 percent of Gen Z adults are stressed about money, a staggering number compared to the 64 percent of all other adults who are similarly stressed.

Gen Zers are eager to reach their financial goals and have clear plans for the future, but a lack of financial literacy, the overwhelming burden of student loan debt and overspending are all holding this young generation back. Take a deeper look at the top financial stressors affecting Gen Z below.

Gen Z Needs Financial Literacy

In a study by EVERFI, only 33 percent of Gen Zers felt prepared to manage their money. The same study shows that this generation has a lack of knowledge regarding their personal finances: 9 in 10 have had experiences with a checking account, but less than 60 percent checked their bank account in the past year and only 40 percent have ever created or used a budget.

Unsurprisingly, these lackluster money management skills stem from an absence of financial literacy education for the youngest generation entering college and subsequently, the workforce.

Student Loan Debt Stress

The total student loan debt in the U.S. has reached nearly $1.6 trillion, making debt a pressing concern for all Americans, but particularly for those who are in college or recently graduated: Gen Z. Of the class of 2018, 7 in 10 took out student loans to cover their education, with an average debt of $29,800, according to research by Student Loan Hero.

With the cost of college continuing to rise, the student debt crisis is only worsening and a report by Brookings predicts more borrowers will default on their loans. As a result, over 40 percent of Gen Zers now identify student loan debt as a significant source of stress in a survey by Lifeworks.

Gen Z Overspending

Research by EVERFI found that 10 percent of Gen Zers buy things they can’t afford, and four in 10 don’t stop spending when resources are low.

Staggeringly high debt and a lack of financial education both contribute to this last Gen Z financial stressor — overspending paired with undersaving. One-third of Gen Zers reported feeling stressed about poor spending habits. The spending, paired with increasing debt, directly links to a lack of savings: almost 20 percent are not putting anything towards their savings each month.

This financial stress affects workers’ productivity and increases healthcare costs, hurting both employees and employers. Financial wellness programs like Best Money Moves can help. Best Money Moves is mobile, gamified and easy-to-use, with an emphasis on financial literacy and accessible tools that’s perfect for Gen Z. It provides practical, unbiased help so employees can make smarter financial decisions and manage the debt they have.

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