financial stress Archives

Financial Stress, Health and Employee Wellness in 2020

by LizStevens | Feb 25, 2020 | Blog

Financial stress, health and employee wellness in 2020. New research highlights the mental and physical effects of financial stress on employees.

Financial planning is the best way to combat financial stress, but many Americans are ignoring the problem and only making matters worse.

Less than a third of Americans have a financial plan in writing, according to research by Charles Schwab. More than 40 percent of them say it’s because they don’t think they have enough money to merit a formal plan, close to 20 percent say it’s too complicated and almost 15 percent say they don’t have enough time to create one.

Financial Stress and Health Statistics for 2020

Financial stress is significantly impacting the lives of Americans. A report by Thriving Wallet, a new partnership between Thrive Global and Discover, found:

90 percent of Americans say that money has an impact on their stress level.
65 percent feel like their financial difficulties are piling up so much they can’t overcome them.
40 percent wish they could have a ‘fresh’ financial start.
40 percent say managing their money on a daily basis limits the extent to which they can enjoy their day-to-day life.
25 percent make purchases they later regret when experiencing significant stress.

Financial stress has a negative effect on individuals’ attitudes towards money and research by Capital One and The Decision Lab found that the more stressed Americans are, the less likely they are to make smart decisions when it comes to spending and saving.

How Financial Stress Impacts Health

It’s bad enough that financial stress skews individuals’ outlooks on finances and impairs their decision making, but its ability to negatively impact immune systems and overall physical health is worse. The same report by Thriving Wallet asked Americans to report negative finance-related impacts on health and found that financial stress effects:

Physical Health (21 percent)
Blood Pressure (17 percent)
Respiratory Symptoms (15 percent)
Somatic Issues (20 percent)
Rates of Tension (25 percent)

Nearly 35 percent of Americans report losing sleep to financial stress, and almost 25 percent of them experience symptoms such as insomnia, broken sleep, fatigue on waking, nightmares and night terrors.

Financial Wellness Programs in 2020

Financial stress costs employers an estimated $250 billion per year in lost productivity and absenteeism.

Over 30 percent of employees don’t have a written financial plan because they think it’s too complicated or they don’t have enough time. Effective financial wellness programs, like Best Money Moves, make it easy for employees to build a financial plan and track their goals.

More than 20 percent of employees told the National Financial Educators Council (NFEC) that they don’t have anyone trusted to turn to for financial guidance. Features like Best Money Moves’ Money Coaches give employees access to trained professional financial counselors who can help them make smarter decisions with their money. Best Money Moves also hosts a library of 700 articles, videos and calculators that employees can use to build their knowledge on everything from investing to co-signing loans to buying their first homes.

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.

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How Financial Stress Impacts Job Performance

by LizStevens | Feb 5, 2020 | Blog

How financial stress impacts job performance. Financial stress makes it harder for employees to concentrate, problem-solve and collaborate with coworkers.

Nearly 60 percent of Americans feel like their finances have taken control of their lives, according to research by Capital One and The Decision Lab.

Financial stress impacts their performance at work and the more stressed they are the less likely they are to make smart decisions when it comes to spending and saving.

How Financial Stress Impacts Job Performance

More than 40 percent of Americans admit financial stress makes it difficult for them to concentrate at work. Research by John Hancock Retirement found the loss of productivity combined with absenteeism from financial stress costs employers more than an estimated $1,900 per year, per employee, and total an estimated annual loss of $1 million for midsized employers and $19 million for large employers.

Financial stress causes feelings of fatigue and interferes with sleep for more than 40 percent of employees. A survey by Bankrate found closer to 80 percent of U.S. adults are losing sleep worrying about everyday expenses, saving for retirement and healthcare costs. Sleep deprivation can impair cognitive ability, making it harder for employees to think and process information.

Financial stress has a significant impact on employees at work. It can lead to lowered productivity, impair the ability to problem solve and moodiness or irritability from loss of sleep could make it difficult for employees to collaborate and communicate effectively.

How Employees React to High Levels of Financial Stress

In their research, Capital One and The Decision Lab found that even when they controlled for household income and FICO scores, high levels of financial stress were linked to worse financial attitudes and practices. Those who experience a high level of financial stress are:

Less likely to save on a regular basis
Less likely to plan their spending
Less likely to feel in control
More impulsive with how they spend their paycheck
Less likely to agree that success comes to those who work hard

How Financial Wellness Programs Help

Financial wellness programs, like Best Money Moves, can help employees regain control of their finances.

Best Money Moves 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 to 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.

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.

What Does Financial Success Look Like?

by LizStevens | Jan 8, 2020 | Blog

What does financial success look like? Financial wellness month: how financial stress is changing the way Americans define success.

A big salary used to be the primary indicator of financial success for Americans, but that’s not the case anymore.

When Northwestern Mutual asked Americans to define success in a recent survey, having a big salary didn’t even break the top five answers. Instead, nearly half of the respondents agreed that being financially prepared for the future is the best sign of success.

What Does Financial Success Look Like in 2020

Financial success looks a lot like financial wellness in 2020. Not being stressed about finances, having enough money set aside for unexpected expenses and being able to retire when you want to are key indicators of financial wellness, financial preparedness and now, financial success.

Many Americans have a long road ahead of them to achieve their definition of financial success. A new survey by KeyBank identified some of the common money missteps they’re making. Twenty-five percent of Americans confessed to impulse buying. Over 30 percent admitted they don’t have any savings set aside for emergencies. More than 20 percent copped to not contributing to retirement savings.

The good news is 60 percent of Americans are ready to take steps to prevent future money mistakes in 2020.

3 Steps Towards Financial Wellness for 2020

These are the three steps Americans plan to take to get their finances in order and avoid further money mishaps:

Identify and prioritize “needs” vs. “wants”
Determine a monthly budget and revisit on a weekly basis
Educate themselves through financial literacy courses

Financial wellness programs that allow for self-assessment, provide access to budgeting tools and a library of resources employees can use to educate themselves on various financial matters, like Best Money Moves, can help employees take steps towards financial wellness in 2020.

Recruiting Trends 2020: Top 5 Features for Financial Wellness Programs

by LizStevens | Dec 4, 2019 | Blog

Recruiting trends 2020: Top five features for financial wellness programs. Employees want features that are engaging and easy to use to help reduce financial stress.

Employers know that financial wellness benefits are a must, especially with the latest data from Financial Health Network indicating less than 30 percent of Americans consider themselves financially healthy.

But what makes financial wellness programs successful?

Recruiting Trends 2020: Top 5 Features for Financial Wellness Programs

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More on Recruiting Trends 2020 and Financial Wellness Programs

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Top 10 Employee Benefits for 2020

How Can Financial Wellness Be Improved?

Choosing the Most Important Benefits to Employees in 2020

What Tops Financial Stress for Employees?

Hiring Trends to Watch in 2020

Reduce Financial Stress with This Type of Insurance

10 Easy Ways to Improve Your Office Culture

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.

Employee Financial Wellness: 5 Financial Stress Statistics for 2020

by LizStevens | Nov 6, 2019 | Blog

Employee financial wellness: 5 financial stress statistics for 2020. How much financial stress costs employers and how employees really feel about financial wellness programs.

The latest Financial Stress Survey from John Hancock Retirement found that financial wellness programs improve job retention, stress levels, and job productivity. Financial wellness programs are now a component of employee benefits that employers can’t afford to ignore.

Employee Financial Wellness: 5 Financial Stress Statistics for 2020

Here are the top 5 most important findings from the report:

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Financial Wellness Programs: Personalization Is a Must

Almost 90 percent of employers say they currently have or are developing a financial wellness strategy, but only 20 percent of employees claim their employer offers anything more than a limited financial wellness program, according to the report by John Hancock Retirement.

While most employees are experiencing financial stress, they’re all experiencing it in different areas and to different degrees. That’s why it’s increasingly important that employer solutions like financial wellness programs have capabilities for customization and personalization to make sure they can address each employee’s unique financial pain points.

Financial wellness programs, like Best Money Moves, are mobile, personalized, gamified and easy to use. Best Money Moves provides practical, unbiased help so employees can make smarter financial decisions.