According to a study by the FINRA Investor Education Foundation, 60% of American adults feel anxious while thinking about their personal finances, and 50% feel stressed when talking to another person about their finances. There are many reasons that an individual could be suffering from financial stress.

Here are 3 root causes and then a way employers can lend a hand in calming those concerns.

1. Lack of access to emergency cash

The COVID-19/Coronavirus pandemic forced many families to tap into cash reserves, making it more difficult to prepare for the future. According to a study by ALM Benefits Pro, a dwindling emergency fund was the 3rd most common cause of financial stress across all participants and the most common cause amongst respondents over 65. Having an emergency fund is crucial to avoid pitfalls such as accumulating credit card debt or taking out high-interest loans. It is important to assist employees in setting healthy savings goals from their paychecks in order to alleviate financial stress from this root cause.

2. Poor money management skills

The weight of this financial stress can lead to cyclical overspending and other poor personal finance habits. Many Americans in general don’t know that they are often spending hundreds of dollars a month in unnecessary excess. According to a survey by OppLoans, 73% of Americans said that they did not follow a budget. The best budgets can identify areas where non-essential spending is too high so employees can address those problems head-on.

3. Persistent debt

During the pandemic, a high percentage of Americans needed to go into debt in order to cover their basic expenses. This debt has persisted into the current day and is the most common cause of financial stress. According to Business News Daily, six in ten employees admit they are concerned about the amount of household debt they have and are also stressed by the lack of employer resources that address those problems. It is important for companies to provide financial wellness benefits that are comprehensive and accessible to employees.

What to do about financial stress in the workplace?

Financial stress affects not only the mental health of your employees but also their focus and productivity. Lost hours and poor performance can have a tangible effect on your organization’s bottom line. According to the Financial Post, employee financial stress cost U.S. employers $40 billion dollars in 2022. This loss is due to increased absenteeism, diminished productivity and an increase in workplace accidents.

It’s important for employers to take a stand and start addressing these problems. Adding a personal finance wellness solution. According to the 2021 PWC Employee Financial Wellness Survey, 88% of U.S. employees utilize the financial wellness programs that their companies offer. The new wave of incoming workers is increasingly placing the responsibility of personal finance squarely on the shoulders of the employer. According to that same study, 65% of Gen Z employees say that their employers are responsible for their financial wellness. Providing a comprehensive financial wellness program is a signal to employees that their best interests are the company’s best interests while also increasing productivity.

Best Money Moves is a mobile-first financial wellness solution designed to help employees dial down their financial stress and meet their most top-of-mind financial goals. With budgeting tools and personalized money coaching, users can easily receive compressive financial advice right from their phones. 

Best Money Moves is designed to guide employees through the most difficult financial times and topics. Our dedicated resources, partner offerings, and 700+ 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.

Diversity, equity and inclusion initiatives are integral to a successful benefit strategy. Companies with a diverse workforce earn 19% higher revenue than their non-diverse competitors, according to a study by the Boston Consulting Group.

Keep reading to learn how DEI initiatives benefit employees and organizations and what you can do to improve your company’s DEI strategy.

DEI initiatives are programs designed to promote practices that combat inequities within your organization. The goal of these initiatives is to create a workplace culture where everyone feels valued, regardless of their race, ethnicity, age, gender, religion, sexual orientation, gender identity, disability, economic status or other diverse background. DEI initiatives can include everything from celebrating cultural holidays office-wide to creating mentorship programs for minority groups.  

Diversity initiatives can benefit your organization in a number of ways. First and foremost, they help to attract and retain a robust team. According to a 2021 Glassdoor survey, 76% of current and aspiring employees report that a diverse workforce is an important factor when evaluating companies and job offers.

A diverse team also brings a wider range of perspectives to the table, which can lead to better ideas and a greater array of problem-solving strategies. In addition, by providing training on how to overcome unconscious biases, you can create an  equitable workplace where everyone has an opportunity to succeed. This can lead to increased morale, teamwork and productivity. In fact, companies with a diverse workforce are 1.7 times more innovative, per Forbes.

Finally, companies that have more diverse teams can connect with a wider range of customers and clients, which improves your organization’s bottom line. According to a 2020 McKinsey study, companies in the top quartile for being ethnically and culturally diverse are 36% more profitable than those in the bottom quartile.

4 initiatives for your benefits program

Despite the clear benefits of diversity initiatives, however, some employers still struggle to create strategies that stick. Here are a few key areas where DEI initiatives can help improve your benefits program:

Pay transparency: Even if your company has a diverse workforce, there may still be disparities in upward mobility based on race and gender. In order to create a truly inclusive workplace, your company needs to ensure that all employees are paid fairly and have equal opportunities for advancement. According to a Visier survey, 68% of employees would switch employers for greater pay transparency, even if compensation was the same.

Financial education solutions: Raising the baseline financial literacy for your employees is one of the best ways to improve equity within your organization. 73 percent of employees who receive financial wellness training from their company say it helps them feel more secure, per TalentLMS. Providing tools that limit financial stress can have substantial impacts on the wellbeing of your employees and your company.

Inclusive hiring practices: In order to truly create a diverse team, your company should examine its hiring practices and ensure that it is inclusive and fair. This may involve removing biases from job descriptions, using diverse candidate pools and ensuring that hiring managers are trained on unconscious bias.

Cultural awareness programs: A diverse workforce will not thrive in an environment that is not inclusive. Your organization should create a culture where everyone feels valued, regardless of their background or identity. This may involve providing sensitivity training and creating a zero-tolerance policy for discrimination and harassment.

Support financial equity in your workplace with comprehensive financial education from Best Money Moves

Best Money Moves is a financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As a comprehensive financial well-being solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial wellbeing. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age. 

Whether it be college planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. Our dedicated resources, partner offerings and 700+ 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.

By 2025, Gen Z employees will comprise nearly one-third of the total workforce, according to data from the World Economic Forum. According to the U.S. Census Bureau, they’re also the most diverse generation yet.

When it comes to financial issues, Gen Z already has a different approach than previous generations. But when you factor in race, ethnicity and gender, Black and brown young adults disproportionately experience more economic headwinds. 

By taking a deeper look at the financial struggles unique to Black and brown young adults, companies support their newest generation of workers

3 financial struggles faced by Black and Latinx Gen Zers — and how companies can help

1. Black and Latinx Gen Zers have lower levels of financial education and literacy

In order for a benefits program to be successful, it needs to align with what employees want. A great way for employers to find out what their employees want is by conducting a needs assessment. These can be done in the form of personal interviews or questionnaires.

A recent trend in employee benefits has been an increased emphasis on financial wellness.  68% of employees said they would rather have financial wellness benefits than an extra week of vacation, per a Betterment report.  Implementing a financial wellness platform is a great way for employers to signal to their employees that their wants and needs are a top priority.

2. Compare financial wellness platforms to find a comprehensive solution. 

Black and brown Gen Zers have disproportionately lower levels of financial education and literacy, compared to their peers. Specifically, 42% of Latinx Gen Zers said they do not have investments because they don’t know where to start, compared to 27% of their non-Latinx peers, per a Bank of America survey. This lack of education and resources makes Black and brown Gen Zers limited in their investments and accumulation of wealth.

In addition, studies have shown that Gen Z women tend to have less financial know-how than their male counterparts. And for women of color, their lack of education is compounded, as they lie at the intersection of race and gender.  

Solution: Invest in a well-rounded financial wellness program

Having a robust financial wellness program can help elevate employees’ financial wellbeing and education, regardless of their income or education level. With access to online resources like budgeting tools or loan calculators, employees can launch their financial education journey. Moreover, with a mobile-ready financial wellness program, employees can learn about stocks, investments and other financial topics, at the ease of their fingertips

2. Black Gen Zers are more likely to experience barriers to saving for retirement, such as debt

Preparing for retirement requires saving over time, but with looming debt it can be difficult to save for the future. According to a Bank of America study, Black Gen Zers are more likely to have student loan or credit card debt than their non-Black peers (60% vs. 44%) and twice as likely to cite debt as a barrier to financial success and retirement security. In turn, this exacerbates the disparity in retirement security between Black and brown Americans and their white counterparts. 

Solution: Start a company match program for retirement contributions

Some companies have incentivized employees to save for retirement by instituting match programs, where employees have their retirement contributions matched by their employer, even if it’s a few dollars a year. Match programs can help employees multiply their retirement fund at a rate they likely can’t achieve on their own.

3. Family is a leading financial motivator for Latinx Gen Zers

Family lies at the cornerstone of Latinx Gen Zers’ financial priorities, more than their counterparts. Over 50% of Latinx Gen Zers say the definition of financial success is the ability to provide for their family’s future, including passing down generational wealth and making their parents proud. Moreover, Latinx Gen Z are more likely to start working at 15-18 to financially support their family financially than any other demographic. 

Solution: Offer employees 1 on 1 financial advice

Managing multiple financial goals can be difficult, but with 1 on 1 financial advising, employees can achieve their most top of mind money goals — both long-term and short-term. Whether it’s helping sending money home or saving for a sibling’s college fund, financial advisers serve as a neutral, trusted resource to help employees balance their budget and multiple financial goals. 

Need a financial wellness solution for your workforce? Try Best Money Moves!

Best Money Moves is a financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As a comprehensive financial well-being solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial wellbeing. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age. 

Whether it be college planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. Our dedicated resources, partner offerings and 700+ 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.