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The Surprising Reasons Different Generations Are Stressed About Money

The Surprising Reasons Different Generations Are Stressed About Money

by | Dec 4, 2024 | For Employers

About 7 in 10 US employees say they’re stressed about money, per PNC’s 2024 Financial Wellness in the Workplace report. However, not all employees face the same financial woes. Younger generations tend to worry about affording monthly expenses, whereas Baby Boomers tend to worry about if — and when — they can afford to retire.

Engaging a multi-generational workforce can be difficult. However, by understanding each generation’s most common financial concerns, HR and business leaders can make the most of their benefits budgets while supporting employees’ financial well-being.

A stat about generations and financial stress

Financial worries can lead to lower productivity and increased turnover

Financial stress doesn’t only impact an employee and their household. Employees’ financial stress and its impacts can seep into the workplace if left unaddressed. On average, employees spend about 3 hours a week at work worrying about their personal finances, according to PNC. Over time, this distraction can lead to a loss of productivity that potentially hurts a company’s bottom line.

Moreover, employees stressed about money are twice as likely to look for a new job, according to PwC, leading to increased attrition and a loss of top talent. By learning the common financial challenges for each generation, employers can adopt impact-driven benefits designed to help alleviate all employees’ financial stress.

Generation Z & Millennials often worry about paying off their student loan debt

Generation Z, born from 1996 to 2012, is the youngest generation in today’s workforce. Gen Z employees are typically recently out of college, university or vocational training and early into their careers.
Millennials, born 1981 to 1996, alongside Gen Z face the looming burden of paying off student debt.

In recent decades, the cost of education has skyrocketed — the average undergraduate tuition has nearly tripled from 1980 to today, according to the National Center for Education Statistics (NCES). As a result, Gen Z and Millennials tend to have more student debt compared to their parents and grandparents’ generations.

Solution: Invest in student debt financing and repayment assistance offerings

Although credit card debt is the most common form of debt, studies show that student loan debt is the most challenging debt to pay off, largely due to inflation, high tuition rates and compounded interest. Over time, student debt can impact an employee’s ability to reach their financial goals, such as securing a mortgage or auto loan.

Over 1 in 3 US employees wish their employer offered student loan financing and repayment assistance benefits, according to PNC’s report. Moreover, employee benefits related to student debt aren’t just for younger generations. Tuition assistance benefits can potentially help older generations, especially those who may still carry student debt from graduate school programs or help finance their children’s education.

Generation X struggles with today’s expenses while still saving for tomorrow

In between Baby Boomers and Millennials lies Generation X. Born between 1965 and 1980, Gen X is next up for retirement, following Baby Boomers.

A common financial concern for Gen X is being able to save for retirement while balancing today’s expenses. Due to limited disposable income, sometimes employees forgo contributing to their retirement account to afford key monthly expenses, such as rent, groceries, car insurance, etc. Some employees have resorted to borrowing from their 401(k) to help make ends meet.

Today, approximately 40% of Gen X employees have $0 saved for retirement, according to the National Institute on Retirement Security. Luckily, even the oldest members of Gen X still have the runway to prepare for retirement.

Solution: Contribute to employees’ 401(k)s through match contributions

To help employees stressed about money afford today’s expenses, many companies have invested in a match contribution program. Company match programs are designed to incentivize employees to save for retirement — for each dollar an employee puts in their 401(k), employers will “match” or contribute the same amount.

Today over 50% of employers offer company match programs, compared to 46% in 2023. Match programs can help employees exponentially grow their retirement savings. This can be especially valuable for employees trying to catch up on their retirement savings.

Baby Boomers’s top concern is making sure they’re ready for retirement

Retirement readiness is the leading financial concern for employees born between 1946 to 1964, also known as Baby Boomers. Although some Baby Boomers have already retired, others are still in the workforce getting ready to enter retirement.

A common worry for Baby Boomers is if — and when — will they be able to retire. Entering retirement is a big step in a person’s life. That said, pre-retirees, including Baby Boomers, must understand how much money they need to live comfortably in retirement. This can help alleviate financial concerns, such as not having enough money to retire or potentially outliving one’s savings.

Solution: Offer 1:1 financial advising to help retirement readiness

Many employees, including pre-retirees, aren’t sure how prepared they are for retirement. Thankfully, with the support of knowledgeable financial advisors, employees can assess their retirement readiness and receive tactical steps on how to improve.

By offering 1:1 financial advising, employees can receive the personalized support they need to help address and alleviate their top financial stressors.

Need a financial wellness solution with customized solutions for every generation? Try Best Money Moves!

Best Money Moves is an AI-driven, mobile-first financial wellness solution designed to help employees with varying levels of financial knowledge dial down their 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, ranging from debt management to purchasing a home. With 1:1 money coaching, budgeting tools and other resources, our AI-driven platform is designed to help bolster employee financial wellbeing.

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 Surprising Symptoms of Financial Stress (And 5 Helpful Solutions)

5 Surprising Symptoms of Financial Stress (And 5 Helpful Solutions)

by | Aug 19, 2024 | Blog

5 surprising symptoms of financial stress (and 5 helpful solutions). The effects of financial stress can be devastating to your workforce. Learn what to look out for and how you can make a difference.

Employee financial stress has been in the spotlight throughout 2024 amid continued inflation and economic uncertainty. In a survey of 2,000 Americans, MarketWatch found that 88 percent of respondents reported feeling some form of financial strain and 65 percent felt that finances were the top source of stress in their lives.

By now, it’s clear that employee financial stress is a significant issue. However the way that stress manifests often comes as a surprise to employers.

The Qualified Plan Advisors’ 2024 Financial Wellness Survey found that 68 percent of the American workforce experiences financial stress, with respondents reporting a surprising range of negative symptoms. Both mental health and sleep are the most negatively impacted, though personal relationships and physical health are also significantly affected by financial stress.

Over 70 percent of employees agree or strongly agree that their employers have a responsibility to ensure employees remain financially well. Furthermore, nearly 70 percent of employees prioritize job opportunities that offer financial wellness programs as part of their benefits packages.

Here are five of the most surprising symptoms of financial stress that could be impacting your workforce — along with five helpful solutions to help keep your workforce financially healthy.

A stat about financial stress.

1. 31% of employees with financial stress report a deterioration in mental health.

Financial struggles that arise from worrying about debt, financial instability or the inability to pay for basic necessities can lead to stress and lower the ability to deal with mental health challenges, according to TIAA Institute researchers. High debt levels are also associated with anxiety, depression and anger and ongoing financial struggles can contribute to feelings of hopelessness and despair that can culminate in depression.

One way employers can help is by providing access to mental health resources. Programs can include counseling services, employee assistance and mental health workshops. Employers can also help create a supportive workplace culture where mental health is discussed openly and destigmatized so employees feel comfortable seeking guidance when needed.

2. 31% of employees struggle with sleep disturbances.

Financial worries can manifest in sleep disturbances, resulting in decreased energy levels. These financial worries may be a result of the high debt levels seen among employees: QPA’s survey found that 80% of employees carry debt, primarily in the form of mortgages, credit cards and student loans, and 64% of individuals lack adequate emergency funds.

Employers can help mitigate this symptom by addressing financial stress at its root through bespoke debt management tools. Providing budgeting worksheets and money management apps can help employees grasp financial essentials. Employers can also organize education sessions focused on bolstering financial literacy on topics such as debt, budgeting, setting financial goals and building good credit. Offering tools is only the first step; ensuring employees know how to use them is crucial. Additional benefits might include student loan repayment assistance, matching debt contributions and flexible work arrangements to help employees save on commuting costs or enable them to work multiple jobs to pay off debt.

Employers can also provide educational sessions on the importance of sleep as well as how to establish healthy sleep routines. Encouraging a balance between work and life by setting firm boundaries for work hours as well as promoting scheduling flexibilities can help employees both manage their time and improve their sleep quality.

3. 18% of stressed employees indicate challenges in their relationships.

Honesty about money is crucial to maintain healthy relationships. Employers should provide financial guidance that looks at money as a part of a person’s overall life that becomes integrated into all relationships.

Learning how to allocate two paychecks, budgeting for household expenditures and discussing long-term savings and retirement goals can all help employees understand what they need from their relationships and move forward with effective money management. Employers can also implement family-friendly policies such as maternity/paternity leave, childcare assistance and flexible working hours for both parents to ease both financial and emotion burdens, leading to healthier family dynamics.

4. Financial stress is linked to adverse physical effects for 11% of employees.

Physical health is just as important as financial health, and the two can go hand in hand. Employers can develop wellness initiatives that encompass financial, physical and mental health through wellness portals where employees can access various wellness resources, from fitness programs and nutrition advice to financial planning tools and mental health support. Offering regular workshops and seminars on financial literacy can be combined with health-related topics like stress management and nutrition. Physical wellness-specific initiatives can include on-site fitness classes, gym memberships or discounts at local fitness centers with participation encouragement through fitness challenges and rewards. Having healthy snacks and meals in the workplace and access to regular health screenings can also help employees stay on top of their physical health.

5. 9% of employees experience reduced work productivity as the result of financial stress.

The TIAA Institute found that financial stress resulted in a 34 percent increase in absenteeism and tardiness. Financially stressed employees are five times more likely to be distracted by finances while at work. QPA’s Financial Wellness Survey shows that 45 percent of Americans allocate one hour or more to manage their personal finances. Financially stressed employees also miss almost double the number of days as unstressed employees.

To help employees stay better focused at work, employers may need to designate some working hours to set employees on the right track. Offering financial wellness programs in the workplace can help employees manage their finances better, thereby reducing financial stress and improving productivity. These programs can include financial literacy workshops, personalized financial coaching, and resources on budgeting, saving, and debt management. Employers can also consider offering financial benefits such as retirement planning assistance and emergency savings funds. This way, allocated time is spent on productive financial educational opportunities, improving overall workplace productivity while giving employees the resources they need for financial success.

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.

Financial Resiliency: The Skill You Didn’t Know Your Team Needed

Financial Resiliency: The Skill You Didn’t Know Your Team Needed

by | Aug 6, 2024 | For Employers

Financial resiliency: The skill you didn’t know your team needed. Learn why fostering financial resiliency may be key to a more productive, confident workforce.

Everyone encounters rough financial patches at some point — the key is how easily you adapt to situations that threaten your well-being. This concept is at the core of financial resiliency, the key skill you could be missing in your workforce.

Financial resiliency refers to a person’s ability to withstand life events that impact their income, assets, or overall financial wellness. Divorce, sudden medical issues and unemployment can throw a wrench into a person’s finances. However, the right tools and support can help employees build financial resiliency and weather any storm.

Employees often look to their employer as a source of financial wellness support. In a survey of nearly 2,000 employees conducted by Transamerica Institute, seventy-seven percent of respondents rated employee financial wellness programs as somewhat or very important. Yet only 28% of employers report offering such benefits to their teams.

Supporting employee financial resiliency can help companies dial down employee financial stress and accelerate the path to financial security. Learn more about the unique benefits of a financially resilient team. Plus, learn to build resiliency among your organization at large.

1. Many employees cannot afford a $1000 emergency

Having enough money for a rainy day is a key pillar of financial resiliency. In case of an emergency like car maintenance or an unexpected bill, a rainy day fund can help employees avoid debt from unexpected expenses.

According to Bankrate’s 2024 Emergency Fund report, nearly 1 in 3 employees have $0 saved for emergencies — a clear indication of low financial resiliency. And given their lack of savings, many Americans cannot afford a $1000 emergency. If faced with a $1000 emergency, many Americans would have to borrow the money, whether through a loan, from a family or friend, or carrying a balance on their credit card, according to Bankrate’s report.

To help employees craft a more financially resilient future, consider offering an emergency fund as part of your employee benefits package. One best practice is to have employees complete financial wellness courses/training in exchange for a $1000 emergency fund — this benefit offering demonstrates a keen dedication to building employee financial resilience and education.

2. Looming debt can impact employees’ financial resiliency and overall health

Debt can come from a myriad of sources — car loans, education, payday loans, medical expenses, and more. Regardless of one’s debt origins, high levels of debt can lower one’s financial wellness and ability to withstand future financial emergencies.

Having a high debt-to-income ratio can limit the options an employee has amid a sudden emergency, even for employees earning six-figure salaries. Lenders and banks may view individuals with a high debt-to-income ratio as high-risk borrowers — this can lead to extremely high interest rates or being denied for a loan altogether. With high interest rates, carrying debt has become increasingly expensive. Over time, the chronic stress from carrying debt can also take a toll on the human body.

According to Forbes’ Mental Health & Debt survey, about 40% of Americans reported experiencing anxiety due to debt-related stress, and nearly half reported having trouble sleeping due to debt-related stress.

3. Help employees build financial resiliency using personalized financial wellness tools

High levels of debt can make borrowers feel stuck and unsure about the best way to manage their looming debt. Moreover, looming debt can feel cyclic.

Employees don’t have to manage their financial stress alone. A robust financial wellness program can empower employees along their financial wellness journey and help them build financial resiliency.

Every employee has a different starting place when it comes to financial wellness and. Find a financial wellness program that personalizes their offerings and counseling, based on each employee’s unique situation, as opposed to taking a cookie-cutter approach. This can help equip employees with the right tools and resources to develop financial resiliency for today and years to come.

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.

3 Big Benefits Mistakes to Erase From Your Program

3 Big Benefits Mistakes to Erase From Your Program

by | Jul 30, 2024 | Blog

3 big benefits mistakes to erase from your program. Your employees are disappointed in their benefits. Avoid these common benefits mistakes to improve engagement and promote wellbeing at your company.

The right benefits strategy is critical to attracting and retaining talent at any company. In a recent PeopleKeep survey, 81 percent of respondents felt that an employer’s benefits package was a deciding factor when accepting a new job.

In fact, according to MetLife’s 2024 Employee Benefit Trends Study, 93 percent of employees consider workplace wellbeing as important as salary. 

However, despite this importance, employers still fall short when it comes to selection — and these benefits mistakes can lead to serious consequences for your team. Forty percent of employers see workers leave their jobs for access to better benefits, according to data from Forbes Advisor. The wrong strategy can leave employees feeling undervalued and overworked, resulting in high turnover and other expensive problems.

Don’t let simple benefits mistakes derail your entire organization. Avoid these costly missteps when putting together your benefits packages. Benefits mistakes from MetLife’s 2024 Employee Benefit Trends Study

1. Having an unclear benefits offering

A lack of understanding is the most common issue that prevents employees from accessing benefits. According to Ameritas, 85 percent of workers don’t understand their benefits options. Responsibilities at work and at home often push accessing benefits far down the list of priorities. The intricacies of plan choices and coverage options may also overwhelm employees who haven’t engaged with them before.

The solution, then, is clear. Providing educational benefits materials is key to improving engagement and making the most out of your current offering. Breaking down complex benefits into digestible steps can help employees of all backgrounds get a jumpstart on their benefits. Also, be sure to provide support and answer questions as they come up.

2. Choosing irrelevant and outdated benefits

Before considering any benefits, it’s important to understand what employees want out of their compensation package. According to PeopleKeep, the most important resources to employees include health benefits, dental insurance, paid time off and retirement options.

However, just because a resource is requested doesn’t mean it’ll be utilized. Consider the usage of each of your benefits when evaluating which ones are best for your organization.

To provide relevant benefits, it’s important to survey your workforce to understand what they are looking for. In the same PeopleKeep survey, only 47% of respondents claimed that the benefits their employers offered fit their specific needs. As a result, personalization is another major aspect of benefits that goes unnoticed. According to Benefit Hub, 75% of employees want custom support based on their mental, physical and financial needs.

3. Overlooking employee financial security

Financial stress is one of the top issues affecting Americans and may be taking its toll on your employees. According to CNBC, nearly 60% of Americans live paycheck-to-paycheck. And this financial stress comes at a cost. In a 2024 SoFi survey, 1 in 4 employees claimed that this financial stress was detrimental to their workplace performance.

According to MetLife’s 2024 Employee Benefits Trend survey, 45 percent of employees reported that financial stress was the top cause of their poor mental health.

The key to financial stress is a holistic financial wellness program. And employees have taken notice. A 2023 Transamerica Institute report found that 77% of employees want a financial wellness program, but only 28% of employers provide it.

Financial wellness provides clarity when making big decisions and hitting important financial milestones. With educational resources and tools, your workforce can rest assured that their most pressing financial questions are answered.

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.

5 Simple Ways to Increase Engagement for Financial Wellness Benefits

5 Simple Ways to Increase Engagement for Financial Wellness Benefits

by | Jul 24, 2024 | Blog

5 simple ways to increase engagement for financial wellness benefits. 5 proven strategies to increase employee engagement for your financial wellness programs.

Financial wellness benefits are more important than ever before, as financial stress weighs heavily on Americans. Nearly half of all respondents (47%) in a recent MarketWatch survey claim that 2024 has been the most stressful year of their financial lives.

Financial wellness benefits offer the resources and education required to curtail the effects of long-term financial stress. For employees, they provide financial security, customized guidance and peace of mind beyond their primary source of compensation. For employers, the right financial benefits help attract talent and keep their workforce satisfied.

According to A TIAA survey, 65 percent of Gen Zers and 61 percent of millennials believe it is a company’s responsibility to help employees improve and maintain their financial wellness. However, despite these concerns, financial wellness programs may go overlooked among the other, more common benefits an employer may provide.

To improve engagement in your financial wellness programs, consider implementing the following five strategies with your workforce.

47% of employees claim that 2024 has been the most stressful year of their financial lives. Financial wellness.

1. Clarify why financial wellness is important.

An open line of communication is the best way to maximize the benefits your employees get from your benefits programs. This goes beyond initial presentations and quarterly emails. Be sure to clarify the resources your wellness program offers and why they are important. Building habits that promote financial wellness are proven to eliminate stress and set your employees up for success.

Effective communication is key to ensuring employees are aware of and understand the benefits available to them. Consistently check in with your workforce to find out what resources will help them best and explain how financial wellness is the solution. This may include communication via emails, messaging channels, newsletters and in-person meetings. To see engagement increase, it’s important to use as many lines of communication as possible.

2. Explain how financial wellness programs can help.

Although the majority of Americans are stressed about finances, employees don’t take advantage of financial wellness benefits and they don’t understand how they work. But the fix is simple. Workshops, webinars and coaching sessions can all be used to explain how the benefits work and how they can improve employees’ financial situations.

For example, budgeting programs allow users to track expenses and see where their spending might be causing issues. Educational resources like articles and videos provide the necessary context to their pressing financial questions. Without understanding why financial skills are necessary, employees are unlikely to use the programs being offered to them.
Financial wellness programs can seem complicated, but the goal is to make them more approachable to the employees who need them most.

3. Understand the necessity of personalized benefits solutions.

Benefits may feel out of reach for many of your employees due to their current circumstances. Instead of using a one-size-fits-all approach, try personalizing your benefits to match the needs of your team. Employees who resonate with their benefits are more likely to use and see results from them. As Deloitte’s 2023 Employer Health Benefits Survey reports, “Today’s workers need a much more customized experience to feel appreciated and valued for what they do.”

Speak directly with employees to find out where their financial strengths and weaknesses lie. With this information, you can understand exactly what your staff needs. For example, an employee fresh out of college will likely be more interested in student loan repayment assistance, while older employees might get the most from family planning or retirement resources. Personalization ensures that the benefits are relevant and valuable to each individual, leading to higher engagement rates.

4. Provide incentives for using financial wellness benefits programs.

Incentivizing employees for their efforts while using financial wellness programs can be a powerful strategy to improve engagement. For example, consider offering rewards for participation or reaching certain financial milestones. Instead of forcing benefits communication, provide employees the opportunity to opt-in using friendly competitions or rewards programs.

Also, consider highlighting the success stories of those who already use your offerings. Employees who see their peers benefiting from financial wellness programs may be more inclined to take action. By providing real rewards, you can encourage employees to engage with the programs and create a positive association with financial wellness.

5. Consider employee feedback.

Alongside consistent communication, learning from feedback is the best way to improve engagement in your benefits.

Use this feedback to develop your strategy to ensure the needs of your employees are being met. Employees who see their feedback lead to real changes are more likely to feel invested in and engaged with the financial wellness benefits offered. These programs are built for employees, so it’s important to incorporate suggestions that are provided by them.

Improving engagement in financial wellness benefits requires a concerted effort, but is well worth the investment. Financial stress is one of the most powerful detractors of productivity and well-being. Financial wellness programs are the key to improving employee financial health and contributing to a satisfied workforce.

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.