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U.S. Rent’s on the Rise: How to Fight Housing Insecurity for All Employees

U.S. Rent’s on the Rise: How to Fight Housing Insecurity for All Employees

by | Aug 17, 2022 | Blog

U.S. rent’s on the rise: How to fight housing insecurity for all employees. Help your employees combat housing insecurity with financial education resources and other strategies. 

Whether you’re buying or renting, housing is less affordable today than it was a year ago. Rental prices have risen 15%, according to Redfin data, and the Federal Reserve recently announced another interest rate hike, which will raise the cost of mortgages. As a result, more people are facing housing insecurity.

Increasing housing costs affect everyone from minimum wage employees to six-figure executives. Learn more about how housing insecurity may be hurting your workforce and how to support secure housing for all.

What is housing insecurity?

Housing insecurity is an umbrella term for the different housing-related problems people have (including, but not limited to affordability, safety, quality and security). 

Housing insecurity may look different from person to person. Today, over 3.5 million people suffer from housing insecurity, according to the National Alliance to End Homelessness, which covers a broad spectrum of issues and situations.

3 ways companies can fight housing insecurity for all:

Housing insecurity affects most workforces across America and with rents still rising, even more people may become impacted. Luckily, companies can help all employees build a future of financial wellness and housing security in three key ways:

1. Provide financial wellness and budgeting tools.

Although low-wage employees have been disproportionately affected by rent hikes, employees across the income ladder have been impacted, too. By investing in robust financial wellness resources, companies can help ensure housing security for all employees. 

Money coaching, budgeting tools and other financial advice can help employees navigate new rent hikes and adjust their budget, regardless of an employee’s living situation or income level. Financial wellness resources are to people reach their most personal financial goals, whether it’s homeownership or simply making ends meet.

2. Allow remote/hybrid work to stay.

Across America, living in the city or business districts tends to be more expensive than surrounding cities or suburbs. With remote and hybrid work, employees are given newfound flexibility in how they make housing decisions. 

By preserving remote and hybrid work models, companies can help employees work toward sustainable housing situations that they can afford long term. Instead of prioritizing being close to the office or city center, employees can prioritize affordability and security when choosing where to live. Moreover, remote and hybrid work models help employees save money by commuting less.

3. Offer relocation benefits.

Moving can be costly, especially when moving out of state for a new job. For instance, in the Chicago, Ill. metro area, the median asking rent is $2454 per month, according to Redfin data, and $4000 in the Boston and New York metro areas.  

To help reduce the financial burden of moving and housing, some leading companies have invested in relocation support for employees (e.g., company-sponsored moving services, subsidies or even temporary corporate housing). By offering relocation benefits, companies can support housing security for all employees, while themselves apart from the competition.

Financial wellness is an investment, but it doesn’t have to be costly. Need a top-notch, budget-friendly solution? 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.

Rainy Day Fund: Helping Employees Weather Financial Uncertainty

Rainy Day Fund: Helping Employees Weather Financial Uncertainty

by | Jul 26, 2022 | Blog

Rainy day fund: Helping employees weather financial uncertainty. A surprising number of employees don’t have enough savings to cover unexpected expenses. Here are 4 ways to help employees build a rainy day fund.

Almost one in five employees cannot cover a $400 emergency expense without using a credit card, according to the Social Policy Institute at Washington University, and almost as many would have to borrow money from family or friends. Having a rainy day fund can help people cover low-cost emergency expenses, without disrupting monthly budgets or accruing more debt. 

Here are 4 ways to help employees weather economic hardship with a rainy day fund.

statistic about need for rainy day fund

Rainy day fund vs. emergency fund

Although similar, rainy day funds and emergency funds slightly differ in two distinct ways: the size of the savings and the intended use of the savings. 

Rainy day funds do not have a set amount, but they tend to carry anywhere from $200 to over $1000 in savings. Instead, emergency funds should contain about three to six months’ worth of living expenses. This is because rainy day funds are typically used for small, non-recurring payments, like an unexpected car repair or surprise parking ticket. 

On the other hand, emergency funds should be used to cover large, unanticipated emergencies, like hefty medical expenses or home repairs. In the event of unforeseen job loss, emergency funds can help cover monthly necessities like rent, utilities and food.

4 ways to help employees build a rainy day fund

Rainy day funds can help employees enjoy a higher level of financial wellbeing and security. In the event of an emergency or economic downturn, employees can be assured that they have a financial cushion to help them weather financial uncertainty.  

1. Start a company match program to help employees build a rainy day fund.

Company match programs can help encourage employees to save. Moreover, they can also help direct employees on where to save. For instance, employees may be more likely to funnel their savings to their 401(k) account if they know that the funds will be matched by their employer.

Instead of just matching retirement contributions or philanthropic donations, consider applying the company match model to other accounts like rainy day funds. This can help employees at all income levels build a financial cushion and improve their financial security.

2. Invest in financial advisors.

Building a rainy day fund doesn’t happen overnight, it takes time and planning. And for some employees that planning is best done with a financial advisor. 

There is no clear-cut amount one should have in their rainy day fund, but with a financial advisor, employees can develop a target amount that works best for them. Regardless of one’s financial situation or level of income, a quality financial advisor will offer personalized solutions fit for any employee’s circumstance. 

3. Provide financial wellness resources and programs.

Beyond financial advising, there’s a whole suite of financial wellness resources that can help employees prepare for financial hiccups. For instance, budgeting tools are an effective way to help employees break down penny-by-penny what money is incoming and outgoing. Budget mapping can also help employees find opportunities to lower their expenses and increase their savings for a rainy day.

4. Offer access to affordable lines of credit and loans for when a rainy day fund isn’t enough.

Rainy day funds grow overtime, but what if some employees need an immediate solution to a financial emergency? Firms can provide an extra layer of financial support by making affordable lines of credit and loans accessible to employees.

Looking for an easy-to-use financial wellness solution? Give Best Money Moves a try!

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, strategic partnerships and 1:1 money coaching, Best Money Moves offers users easy, 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.

Most Americans Live Paycheck-To-Paycheck. Here’s How Employers Can Help

Most Americans Live Paycheck-To-Paycheck. Here’s How Employers Can Help

by | Jul 19, 2022 | Blog

Most Americans live paycheck-to-paycheck. Here’s how employers can help. With inflation the highest it’s been since the 1980s, more and more families are living paycheck-to-paycheck. What can employers do to help their teams?

Inflation has caused food, gas and housing prices to skyrocket. Between May 2021 and May 2022, inflation hit 8.6% — the highest increase since December 1981, according to the Bureau of Labor Statistics — and economists are unsure when prices may fall.

Trying to make ends meet, about 60% Americans are living paycheck-to-paycheck, according to a LendingClub report, making it the primary financial lifestyle in the U.S.

Living check-to-check isn’t sustainable — it leaves people susceptible to increased debt and high-stress levels. Here are 4 ways companies can help employees manage rising inflation and create viable money habits for the future.

1. Offer budgeting tools and 1:1 money coaching to help employees living paycheck-to-paycheck.

Even with a high income, poor budgeting or not budgeting at all can create a paycheck-to-paycheck lifestyle. For instance, although 7 in 10 Americans have a budget, only 25% have detailed budget, according to a TIAA report. Without a detailed budget, it is difficult to accurately keep track of how much money is coming in and going out each month.

To help employees break with a paycheck-to-paycheck lifestyle, companies can offer budgeting tools and personalized money coaching. These resources are to help employees focus on necessitates and better allocate their money, regardless of their income level. Moreover, it can help identify savings gaps or where to cut down spending.

2. Provide student loan repayment assistance.

Since the federal student loan pause started in 2020, repayment has not been top-of-mind for most Americans. However, this is expected to change starting August 31, 2022 — when student loan repayment, interest and collections pause is scheduled to expire.  This means millions of Americans will have to reintegrate student loan payments into their monthly budget, but with rising inflation, many are worried if they can afford to resume payment. 

By providing student loan repayment assistance, firms can demonstrate a commitment to employee financial wellness and wellbeing. Not only will this help employees lower their student loan debt, but it will also help them weather inflation and financial stress.

3. Invest in mental health resources for those living paycheck-to-paycheck.

Money stress does not function in a vacuum — it can bring on emotional stress, physical stress and even wear down someone’s mental health. According to TIAA, 59% of Americans carry financial stress and with prices on the rise, this number may grow. 

To help dial down stress levels and support all-around employee wellbeing, firms are investing mental health resources like talk therapy and meditation apps. Consider ways your company can make mental health resources more affordable and accessible for employees at all paygrades.

4. Expand financial literacy and education opportunities.

With the right tools and resources, companies can help employees strengthen their financial wellbeing and knowledge, simultaneously. At every budget, there are ways institute financial wellness programming and resources, whether it be tax filing workshops or retirement planning seminars. 

Companies are most successful when they listen to the wants and needs of their own employees, then creatively follow through in their financial wellness offerings and approach. When searching for a quality financial wellness program, try to avoid one-size-fits-all solutions and keep an eye out for customized services (e.g., 1:1 money coaching, mortgage and loan calculators and other personalized solutions).

Need a top-notch, budget-friendly financial wellness program? Try Best Money Moves!

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.

5 Benefits to Help Employees Cope with Inflation

5 Benefits to Help Employees Cope with Inflation

by | Jun 1, 2022 | Blog

5 benefits to help employees cope with inflation. Inflation is the highest it’s been in years. Here’s how employers can support their teams cope with inflation with the right benefits choices. 

As inflation skyrockets, the effects are felt throughout the US workforce. According to BenefitsPro, 82% of HR executives are concerned that their employees’ personal finance issues affect workplace productivity. 

Luckily, there are methods employers can use to help employees weather this period. Here are 5 benefits employers can use to help employees cope with inflation.

1. Improved Retirement Benefits

Increased inflation is straining “rainy day funds” and other savings for employees. According to the AARP, 39% of employees have nothing saved for emergencies and 20% have nothing in their retirement accounts. A few great ways for employers to assist employees are auto-enrolled retirement plans and increasing 401(k) contributions. Improving retirement benefits can also be a great way for employers to keep up with the competition in their industry. According to SHRM, 16% of large and midsize US employers plan to raise 401(k) contributions or reinstate a contribution match for 2022.

2. Health Care Assistance

A strategy for employers to signal to employees that their needs are being cared for is by increasing health care benefits. This assistance can come in many forms such as covering the cost of health insurance or assisted savings programs. Health care costs can often drag behind increases in consumer prices, so employees may face an increase in costs that will last throughout this year and next.

According to the Kaiser Family Foundation, 46% of employees reported that they have less than $1,000 in out-of-pocket costs for any unexpected hospital/doctor visit. Assisting with health care can also help alleviate mental health problems amongst workers. According to AFLAC, about half of all employees report having anxiety about covering the cost of healthcare beyond what their insurance covers.

3. Student Loan Repayment Assistance

Repaying the student loans that employees are indebted to is a great way to repay the workers for the investment they made in higher education. The government has tried to encourage businesses to implement these programs in their benefits packages. In 2020, employers that offered student loan repayment assistance doubled from 4 to 8%. However, in a survey by SHRM, 41% of young adult employees placed student loan assistance in their top 3 benefit choices.

4. Financial Planning and Coaching

Financial Planning and Coaching benefits showcase a gap between employer benefits and what employees want. According to BenefitsPro, only 35% of employers offer financial planning and 24% offer financial coaching while 60% of employees want personalized financial planning and 54% of employees want personalized financial coaching. Utilizing a service like Best Money Moves makes it easy for employees to find custom solutions to each employee’s problems.

5. Comprehensive Financial Benefit Packages

The best way to address the evolving personal finance needs of employees is by providing financial wellness benefits that can address a wide range of issues. According to Obsidian, 34% of workers spend some of their work hours on personal finances. Working in close communication with workers about what plan works best for them makes it easy to have a healthy workplace and can increase productivity. Best Money Moves is a platform that provides many of the solutions that employees are searching for.

Help employees cope with inflation with financial wellness solutions from Best Money Moves.

If you’re looking for a first-in-class financial wellness solution, Best Money Moves could be the answer you need. Best Money Moves is a financial wellness program that provides all the guidance and support employees need to help them reduce their financial stress. It has tools and features that help employees measure their financial stress, budget for monthly expenses, pay down debt and plan for emergencies.

Employees can talk to trained professional financial counselors and educate themselves about everything from investing to co-signing loans and buying their first homes with access to a library of over 700 articles, videos and calculators. 

Best Money Moves is also gamified, featuring a point-based rewards system where users earn points every time they log in, enter their information into their profile, work with their budgets, read articles and measure their stress. Each point translates into a chance to win a monthly contest.

Employers want a financial wellness program that is expansive, engaging and suited to meet each of their employee’s unique needs and they’ve found it in 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.

High-Earning Employees Need Financial Help, Too

High-Earning Employees Need Financial Help, Too

by | May 4, 2022 | Blog

High-earning employees need financial help, too. A six-figure salary doesn’t always translate to financial security. Here are 4 ways high-earning employees can benefit from financial wellness programs.

It’s a common misconception that a six-figure salary always translates to financial security and that high-earning employees have no need for financial wellness benefits. However, this isn’t always the case. What’s more, a good financial wellness program offers tools for those who are secure and not just at-risk employees.

Here are 4 reasons that even your high-earning employees still need financial wellness resources.

1. More money doesn’t always mean fewer financial concerns for high-earning employees.

Financial wellness means different things to different people, even those with higher-than-average incomes. However, with rising rents and record-high inflation, even a six-figure salary doesn’t necessarily guarantee financial security. Almost 20% of employees earning over $100,000 live paycheck to paycheck, according to a Willis Towers Watson survey. Living paycheck to paycheck means that termination, or even a late paycheck, can put an individual and their family at risk. 

surprising stat about high-earning employees

It’s important to limit broad assumptions about your team’s financial security based on pay alone. Companies can help prevent financial vulnerability through personally tailored budgeting and spending tools. These financial resources can support employees, at all income levels, toward increased financial wellness. 

2. Even employees with a basic level of financial wellness want more.

A Morgan Stanley at Work survey found that even employees with a good foundation of financial wellness still admit needing help to reach their short-term and long-term financial goals. 

Companies can get more specific on the financial goals of their own employees by conducting internal surveys, and then matching those needs with the right financial wellness resources. Together, this can help companies further employees’ financial knowledge and empower their financial wellness.

3. High-earning employees want three key financial wellness benefits.

According to the Morgan Stanley data, high earners were generally attracted to three financial wellness benefits:

  • Retirement planning (69%)
  • Access to financial advising (57%)
  • General financial education (41%)

This poll data may be surprising to some, but again, more income doesn’t mean better money management. In fact, the same Morgan Stanley poll showed that high-earning employees who are less confident about their personal finances are more likely to gravitate toward certain benefits, even those that may seem simplistic like budgeting and spending tools. There is no shame in asking for more help and with the right financial wellness program, companies can deliver such help to all employees.

4. Financial wellness can help you go beyond with company retirement matching.

Retirement planning is a priority for employees of all backgrounds; however, not every retirement benefit can be utilized by high-earning employees. For instance, companies cannot match 401(k) contributions on income above the annual compensation cap, which is currently $305,000, according to the IRS. This puts high earners at a disadvantage because their company is only matching a small percentage of their income for retirement.

Instead, according to Tom Conlon, Head of Retirement Sales for Morgan Stanely at Work, companies should go beyond the retirement match and consider equity or nonqualified deferred compensation plans, which are gaining popularity in the workplace. 

Conlon emphasizes that a good financial wellness plan considers what top earning employees need, and it can be a way to stand out and retain top talent.

Looking for a financial wellness program to fit earners of all sizes? 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 wellbeing solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial wellbeing, regardless of one’s income level and background. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age and financial background. 

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.