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Financial Literacy Month: What Makes a Great Financial Literacy Strategy?

Financial Literacy Month: What Makes a Great Financial Literacy Strategy?

by | Apr 2, 2024 | Blog

Financial Literacy Month: Fundamentals of Financial Literacy. A quality benefits strategy should include financial literacy tools to better support employees.

April is Financial Literacy Month, which recognizes the role that financial education plays in a person’s long-term success and stability.

Without the right education, your employees are much more susceptible to financial hardship. According to a Forbes Advisor survey, 68% of Americans say financial regrets from 2023 caused them stress in the following year. However, compensation alone isn’t enough to cultivate a worker’s financial well-being.

Successful financial literacy requires a holistic approach, one that recognizes financial stress as a complex issue and offers many solutions to help address employee pain points. Here are the key components of a successful financial literacy strategy, plus how you can use the right benefits to improve the quality of life for your team.

A fact about financial stress and Financial Literacy Month.

1. Budgeting and saving skills are the foundation of financial literacy.

Unfortunately, 44% of Americans can’t pay $1,000 for an emergency expense from their savings. So when a financial emergency occurs, they may be forced to rely on credit cards, personal loans or other types of consumer debt. Employees need a reliable savings account to face tough financial setbacks, and building savings starts with the right budget.

Employee financial wellness programs are the first line of defense when it comes to teaching employees to budget and save. These helpful, interactive platforms teach foundational financial skills through a mixture of reading materials, interactive tools and customizable financial guidance.

These programs are in high demand among employers and workers alike. In PNC’s Financial Wellness in the Workplace Study, 80% of employees said they would stay longer with an employer that offered more financial wellness benefits.

2. Debt management skills help employees plan for a debt-free future.

Understanding how debt works is one of the most important aspects of employee financial literacy. The average American adult holds around $104,215 in debt across mortgages, auto loans, student loans and credit cards, according to data from the Federal Reserve. The average debt for Millennials alone rose more than 8% in 2023.

Dealing with long-term debt issues can lead employees to postpone other major financial decisions like buying homes, getting married or starting a family. According to a Bankrate survey, nearly 60 percent of U.S. adults with student debt have put off making important financial decisions due to that debt. Delaying major milestones puts employees behind their peers and makes it difficult to build long-term wealth.

To combat debt, employers can use a variety of strategies, including loan contribution plans and tuition reimbursement. Look for tools to help employees visualize and track the repayment process, with an emphasis on understanding interest costs.

3. Don’t overlook retirement and investing skills.

The ability to save for a secure future is one of the most important reasons to teach financial literacy. Retirement plans are core to building a solid foundation, but many Americans are still not saving enough. 

According to the St. Louis Federal Reserve, in April of 2023, personal savings only accounted for 4.1% of disposable personal income. This means that Americans are saving only a small percentage of their wages, which won’t be enough to fully support a retirement plan. These numbers also represent a sharp decline from the pandemic when the majority of Americans saved upwards of 30% of their income in April of 2020. Without a proper savings plan, employees may have to work past retirement age.

While employer-sponsored retirement benefits are almost always offered to full-time employees, many workers overlook their existing benefits due to a lack of education. Use your financial literacy strategy to target retirement planning. Doing so can improve the take rate of your existing benefits and help employees feel more confident planning for the future. In a 2023 MetLife study, 62% of employees said understanding how to use their benefits would give them more financial stability.

4. A successful financial literacy strategy knows that accessibility is key.

Although online resources built to improve financial literacy are out there, it doesn’t mean they are all accurate or accessible. Education for all ages, incomes and experience levels is the most important factor for a successful financial wellness program. Even employees earning more than $100,000 a year struggle with debt and issues paying bills.

In fact, financial concerns can be completely different based on the individual’s age group. According to Business Insider, building a savings account is one of the most pressing stressors for Gen Z, while older millennials are generally more concerned about credit card debt. Both of these issues require specific solutions and it can be difficult for employees to find the answers they are looking for.

A financial wellness benefit offers an all-in-one package where employees can ask questions and learn how to avoid common pitfalls.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being.

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

The 4 Best Benefits in 2024, According to Employees

The 4 Best Benefits in 2024, According to Employees

by | Mar 11, 2024 | Blog

The 4 best benefits in 2024, according to employees. Your benefits choices go a long way toward attracting the right employees. Here are the 4 best benefits in 2024, according to employees.

A holistic benefits strategy is one of the most important factors that job-seekers consider when deciding where to work. In fact, according to Forbes Advisor, 40% of employers believe that workers would leave their current jobs to find employment that offers better benefits.

Well-tailored, helpful employee benefits go a long way toward keeping your existing team members satisfied while also attracting new talent. With dozens of options, each catered to different ages, incomes and needs, how do you know the right program to choose?

To evolve your benefits strategy, you need to understand what will help your employees the most. Here are the best benefits in 2024 based on input from real workers.

A fact about the best benefits in 2024

1. Affordable healthcare

Healthcare costs are a major concern for employees, especially for those who earn lower wages.

Average healthcare premiums for American families increased 7% in 2024, according to research from KFF. As these costs rise, so do concerns about affordability. To ease the financial burden, employees look to their compensation packages for support.

The study from Forbes Advisor shows that 67% of employees and 68% of employers believe healthcare to be the most important benefit.

Healthcare benefits can be wide-ranging, but usually include some sort of insurance package that helps make medical costs more affordable for employees. Employer-paid healthcare benefits allow employees flexibility when dealing with a medical visit and peace of mind when the bill comes.

Employees also value alternative health benefits, such as gym memberships, wellness programs and mental health programs. According to Forbes Advisor, a third of employees surveyed named mental health programs as a top benefit.

Mental health benefits include everything from inclusive paid leave to workplace meditation. Programs that support mental health have shown improved performance at work among employees. Research from the National Library of Medicine reveals that 86% of employees treated for a mental health condition reported an increase in productivity.

2. Paid time off

PTO allows employees to take breaks from their busy schedules and recharge. In turn, potential burnout is replaced with productivity and a positive working environment.

Post-pandemic, there has been a significant shift toward flexible benefits that emphasize work-life balance. More companies are even adopting remote work strategies and four-day work weeks to help their employees.

Making these benefits as inclusive as possible is another factor to consider. Mercer’s 2023 Health and Benefits Strategies report shows that many employees are looking for benefits packages that include parental leave, adoption leave and elder caregiver leave.

With non-standard work schedules becoming the norm, flexibility in general is in high demand among most employees. Some lesser-known benefits in this area include virtual team bonding activities, a home office stipend and financial assistance to cover internet costs.

3. Pension and retirement plans

The same Forbes Advisor study found that 34% of employees and 34% of employers agree that retirement plans are a vital part of a company’s benefits strategy. A retirement plan allows employees to build a financial safety net as they work, saving money over their careers.

In a study from PeopleKeep, 87% of employees surveyed said they valued retirement benefits or retirement accounts. However, only 54% of the employers surveyed even offered those benefits.
Retirement plans are tax deductible, flexible and are a great way to attract new talent to your business. Introducing quality retirement plans is a great way to keep your employees satisfied and set them up for future success.

4. Financial wellness benefits

For employees struggling to keep up with their finances, financial wellness benefits have been shown to greatly improve stress levels, well-being and retention.

Costs of common goods and groceries are rising due to different economic factors, making it harder for salaried workers to manage their finances. According to BenefitsPro, 53% of US adults are financially anxious, while more than 60% of families don’t have an emergency fund. Financial stress leads to decreased productivity at work and an overall lower quality of life for your employees.

A comprehensive wellness strategy is the answer to financial stress outside of the workplace. These benefits provide personalized advice for all aspects of a person’s financial life. Financial wellness programs also provide a convenient place for employees to manage their budget, track spending and set achievable goals.

In fact, in PWC’s 2023 Financial Wellness Survey, 74% of employees who responded sought guidance when faced with a major financial decision, crisis or life event.

If you are looking to start a financial wellness initiative in your business, try Best Money Moves.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being.

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

Video: Using Technology in Financial Wellness Services

Video: Using Technology in Financial Wellness Services

by | Feb 23, 2024 | Blog

Using technology in financial wellness services. Help your team achieve their most important goals by including financial technology services in your benefits program.

 

 

Nearly 60 percent of Americans say that money is the top cause of stress in their lives, according to data from PWC. Chances are your employees are dealing with many of the same struggles. Financial stress includes both everyday habits, like building a budget, and bigger goals, like paying off student debt. Tackling these problems while juggling responsibilities at work and at home, can be overwhelming for employees.  

To help your team achieve the goals most important to them, include financial technology services in your benefits program. 

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Best Money Moves is an interactive financial wellness benefit that helps employees make smarter choices about their money. Whether employees are building their first budget, paying down debt, working toward homeownership or planning for retirement – Best Money Moves has the tools they need to turn financial goals into reality. Best Money Moves users gain access to a suite of debt trackers, budgeting calculators and a library of 900+ articles, videos and webinars. Our tools empower employees with actionable solutions to real-world problems. Best Money Moves users also receive exclusive member deals from our library of trusted benefits partners, including discounts on insurance, college planning prescription medications and so much more.

Schedule a call with a member of our team to learn more about Best Money Moves. Contact us and we’ll reach out to you soon.

How Small Businesses Can Develop a Financial Wellness Strategy

How Small Businesses Can Develop a Financial Wellness Strategy

by | Feb 7, 2024 | Blog

How small businesses can develop a financial wellness strategy. Learn more about how small businesses can embrace financial wellness to increase employee well-being.

A comprehensive benefits package is one of the best strategies small businesses can use to retain employees and attract top talent. When salaries are comparable, the decision to take an offer often comes down to the level and quality of an employer’s benefits program. 

In fact, according to a survey conducted by ConsumerAffairs, 42% of employees stated they would likely leave their jobs for another position with better benefits.

a surprising statistic about the necessity of financial wellness for small businesses

Why are employee benefits important to small businesses?

Employee benefits are forms of compensation outside of a traditional salary or wage. Small businesses often include a suite of benefits when advertising a job offer to stand out among larger competitors in their industry. 

Some benefits, such as health insurance, workers’ comp and social security are required by law. These are known as statutory benefits and serve to protect employees from struggling with money directly after leaving a job or provide coverage if there is a workplace accident or illness.

However, benefits also serve as a method for small businesses to satisfy employees. To retain employees in full-time positions, a quality benefits strategy is vital. Small businesses are often competing with the tools and resources of larger organizations and may struggle to find ways to stand out when looking for top talent. According to a Pew Research Center study, in 2021, 43% of workers who quit their jobs left due to lack of benefits flexibility, including poor health insurance and mediocre paid time off. Although statutory benefits are necessary to support a workforce, auxiliary opportunities are usually the backbone of a comprehensive benefits program, especially for small businesses.

Why should your small business offer financial wellness as a benefit?

When considering the costs of statutory benefits, including a financial wellness component may seem unnecessary, especially for small businesses. However, according to Morgan Stanley, 75% of Americans believe that financial wellness should be a part of their company’s programs. 

It’s also important to note that workers are struggling with their finances at an alarming rate. According to a Bankrate survey, 52% of U.S. adults said their financial issues harmed their mental health, which included an increase in stress. These mental declines impact employees at the office, leading to lower productivity and increased rates of absenteeism. Data also suggest a disturbing trend toward the lack of financial resources for employees. And problems with financial wellness can span far beyond an employee’s life at home. According to data collected by management software engineer TeamStage, employees who experience severe financial stress levels lose between 29 and 39 workdays every year to attend to concerns. 

Financial wellness programs generally lead to a positive return on investment for small businesses because of the major additions they make to employees’ lives. These include reduced absenteeism, positive company perception and fewer financial burdens for your workforce. 

At small businesses, financial wellness benefits are the key to solving your workers’ most pressing issues. These programs usually include a host of resources and tools that help employees manage their finances and provide an easy outlet to address the most common money concerns. The bottom line is that financial wellness benefits can have a positive impact on engagement at work, improve your company’s brand among prospective employees and save your small business money in the long run.

How small businesses can develop a financial wellness strategy

If you have a small business, considering the financial well-being of your employees is one of the best ways to support and grow your workforce. With a small business, you can tailor benefits to fit your company’s culture and address your employees’ needs. A benefits program that helps employees reach their financial milestones is key to promoting a positive sentiment in the workplace.

Here are some tips for supporting your team’s financial well-being. 

1. Ask your employees what financial wellness benefits are right for them. A smaller team can help you get individual responses and create a more personalized benefits solution. Ask employees how they feel about their financial wellness and if extra resources would be beneficial. Compared to large corporations, small businesses can be much more in tune with their workers’ needs, so take advantage of that when considering what benefits to offer.  

2. Promote a financial wellness initiative. Including a comprehensive financial wellness program into your business can help employees get back to setting and achieving their most important financial goals. Financial wellness can take many forms, but you might consider basic financial literacy courses, budgeting classes, retirement planning, and the tools a benefits solution might offer. At a small business, it can be easier to create tailored offerings based on the demographics of your company. 

3. Regularly assess the effectiveness of your benefits strategy. Simply offering the benefit to your employees is only the first step. For your employees to get the full freight of the benefits you offer, make sure to consistently ask for feedback to facilitate the right changes. From there, you can make the adjustments that will help your workforce the most. It is also important to establish what you consider to be a successful program. What do you want your employees to get out of a financial wellness program? What does a successful benefits campaign mean to your company?

Ready to embrace financial wellness for your small business?

Best Money Moves is an interactive financial wellness benefit that helps employees make smarter choices about their money. 

Whether employees are building their first budget, paying down debt, working toward homeownership or planning for retirement – Best Money Moves has the tools they need to turn financial goals into reality. 

Best Money Moves users gain access to a suite of debt trackers, budgeting calculators and a library of 900+ articles, videos and webinars. Our tools empower employees with actionable solutions to real-world problems. Best Money Moves users also receive exclusive member deals from our library of trusted benefits partners, including discounts on insurance, college planning prescription medications and so much more.

Schedule a call with a member of our team to learn more about Best Money Moves. Contact us and we’ll reach out to you soon.

3 Impacts of Employee Student Debt in 2024

3 Impacts of Employee Student Debt in 2024

by | Jan 3, 2024 | Blog

3 impacts of employee student debt in 2024. Student debt payments have resumed following 3 years of forbearance. Learn how student debt could impact your team during 2024.

After a three-and-a-half-year forbearance period, federal student debt payments resumed in October of 2023. Depending on the individual, student debt can pose anything from a minor headache to a crippling financial hurdle that delays other milestones for years to come.  

The Education Data Initiative estimates that there are more than 43 million student borrowers in the United States, with an average debt balance of $37,718 per borrower. So, more likely than not, at least some members of your team were affected by the loan restart. Keep an eye out for these three ways that employee student debt may impact your team in 2024. 

A surprising statistic about the prevalence of employee student debt1. Financial stress from employee student debt negatively impacts employee mental health.

The average monthly employee student debt payment for graduates is about $500, according to more data from the Education Data Initiative. It takes almost 20 years for people to fully pay off their debts.  Borrowers are expected to fit these monthly expenses alongside existing financial responsibilities. But for many employees, especially those living paycheck-to-paycheck, that can be easier said than done. Paying an extra hundreds of dollars per month can be backbreaking and often leads to an increase in financial stress. 

In a recent Education Trust report, 64 percent of graduates surveyed said that student debt negatively impacted their mental health. And this stress isn’t uncommon even among high earners. According to CNBC15% of workers earning $100,000 say they still live paycheck to paycheck.

An increase in financial stress generally leads to reduced productivity as well. A recent PwC survey found that more than 50% of workers spend three hours or more per week at work dealing with issues related to their finances.

2. Employee student debt may delay other financial milestones.

The reintroduction of employee student debt payments also may delay financial milestones. Goals like saving for retirement, purchasing a home or building an emergency fund can be delayed or even gutted due to the pressure for additional monthly payments.  

According to a Bankrate survey, around 60 percent of U.S. adults who currently struggle with student loan debt have put off making important financial decisions as a result.

Delaying financial milestones can drastically affect a person’s mental health, as they are forced to forego life-changing events (such as getting married or having children) due to financial strain. The same Bankrate study found that 57 percent say their quality of life has been negatively impacted by the economy. Postponing milestones can also affect an employee’s earning power. Without the ability to receive more education due to debt, employees are stuck with lower-level jobs and the difficulty of trying to get a new degree or certification.

3. Employees juggling student debt may face career setbacks.

Graduates who struggle with student loans often need to postpone additional education or training while they work on their debt. This may stagnate potential career growth and limit the opportunities employees may have to excel at their jobs.  

Financial stress can also impact performance at work, as a SHRM survey found that these issues have resulted in a 34% increase in absenteeism and tardiness. 

In fact, employees who aren’t reaching their financial goals often decide to take initiative and find new jobs altogether. According to the ADP Research Institute, employees who consider their student loan debt to be a “heavy burden” are 2.4 times more likely to be in the process of leaving their organization.” 

In conjunction with this is the issue of job satisfaction. Almost one in five employees say that their jobs are not doing enough to support their financial goals. Whether it’s not making enough to support themselves or being unable to save for any sort of emergency expense, employees are often left with questions regarding their financial future.

Addressing employee student debt head-on

Although the student loan crisis is dire, there are still ways employers can help curtail the negative effects of student loans to keep their workforce thriving and happy. 

Financial Wellness Initiatives

  • Financial wellness programs are some of the most effective ways to address the issues student loans create. Debt can be difficult to understand and can seem impossible to navigate for first-time borrowers. But these programs empower employees to take control of their debt and their financial futures. Financial wellness initiatives go beyond traditional benefits, as they focus on teaching financial literacy with topics like budgeting, saving, and managing debt.

Tuition Reimbursement 

  • A key benefit for employees in 2024 will be a comprehensive tuition reimbursement program. Some companies allow their employees to use earnings as a way to pay off student debt, similar to a 401(k) plan. Others use a simple recurring payment option as an incentive for employees. A direct repayment program can ease the burden of student loans and allow workers to focus on their financial milestones without feeling set back.

Luckily, 74% of workers who are stressed about money actively seek help during an important financial decision, whether it’s from their employers or online resources. Creating a space where employees can learn about financial wellness effectively is one of the greatest boons you can give to your workforce. Through budgeting tools, educational resources and personalized recommendations, these programs allow employees to take control of their financial lives.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.