Log in
Book a Demo

5 Surprising Symptoms of Financial Stress (And 5 Helpful Solutions) Read it here.

Book a Demo
5 Surprising Statistics About the State of Employee Financial Wellness

5 Surprising Statistics About the State of Employee Financial Wellness

by | Nov 7, 2023 | Blog

5 surprising statistics about the state of employee financial wellness. Economic uncertainty has reshaped how employees think about their benefits. Here are key insights into the state of employee financial wellness.

Economic uncertainty throughout the past few years has reshaped how employees think about their benefits. In their 2023 Workplace Benefits Report, Bank of America surveyed 800+ American workers, examining the success of their benefits programs. The responses illuminate the growing strain of financial stress on many workforces — and just how important financial wellness benefits are to offsetting that stress. 

Here are 5 key statistics from the survey that reveal important insights into the state of employee financial wellness.

A surprising statistic about the state of employee financial wellness

1. 63% of employees feel that economic uncertainty affects current and future workplace benefits and 401(k) retirement plans.

Employees feel the strain of prolonged economic uncertainty, although different generations show their stress differently.  Workers in the baby boomer generation are having to delay retirement due to the instability of the current economy. Millennial and Gen Z employees grapple with high levels of student debt and may worry about their current financial situation. But however your team is affected, one thing remains constant: workplace morale and productivity suffer.

Providing employer-sponsored financial benefits is one way to put your team at ease. 3 out of 5 respondents reported that they would feel confident investing in a 401(k) or alternative retirement plan through their employer will help build their savings for retirement.

2. Women feel economic strains more acutely: 39% of women had to look for additional employment to keep up with rising costs compared to 17% of men.

According to Bank of America, women generally feel financial stress more significantly than their male counterparts. More women lie awake at night worried about their personal finances and more women are worried that due to inflation, they won’t be able to make ends meet. The workplace benefits that you provide need to be tailored to each employee and account for differences between demographics. A static solution that is the same for everyone does not address the complex needs that the world of personal finance creates.

3. The percentage of employees that prioritized saving for retirement has dropped by ⅓.

As economic situations fluctuate, the priorities of your workplace do as well. As retirement planning dropped in focus, employees prioritized paying off credit card debt and building an emergency savings fund. These statistics highlight the need for a comprehensive financial wellness program. A band-aid solution such as a 401(k) matching plan or something similar may work in some years, especially prosperous ones. However, these programs need to do a better job of lending a hand to your workforce during turbulent economic periods.

4. 2 in 5 workers rate their employee financial wellness as “good or excellent”, the lowest figure since 2010.

This is alarming but not necessarily surprising, considering the tumultuous economic strain of the COVID-19/Coronavirus pandemic and subsequent years. When surveyed, only 56% of employees said that they felt optimistic about the future, a decrease from 61% the previous year. As these feelings persist, it becomes more imperative for employers to provide some form of financial wellness solution to help employees build financial confidence.

5. ¾ of workers feel that employee financial wellness is the responsibility of their employer

This idea of improved financial wellness does not solely come from increasing pay. The responsibility also encompasses employers that must instill healthy personal finance habits through education or additional resources. Not only do employees think it’s the responsibility of their company, but employers think so as well. Ninety-six percent of employers that Bank of America surveyed said that their employee’s financial wellness is on their shoulders. However, there is a disconnect between what companies say and how they’ve put their thoughts into action. Currently, only 40% of companies offer any sort of financial wellness program.

Address employee financial wellness head-on with help from Best Money Moves.

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 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.

Financial Wellness: The Missing Piece of Your DEI Strategy

Financial Wellness: The Missing Piece of Your DEI Strategy

by | Jan 11, 2023 | Blog

Financial Wellness: The missing piece of your DEI strategy. Financial wellness could be the key benefit that your DEI initiative is missing. Here’s what to consider.  

Organizations are constantly trying to improve diversity. But while progress has been made, many workplaces are still a long way from achieving true equity. 

The median wealth for white households is $187,300, according to data released by the U.S. Census bureau. However the median wealth is only $31,700 for hispanic households and $14,100 for black households.

This imbalance highlights just one aspect of the stark wealth equality problems that still exist both in the office and at home. For teams looking to bridge the opportunities gap between employees of different backgrounds, one thing is clear: Financial Wellness is a key piece of DEI. 

Financial Wellness: The missing piece of your DEI strategy.

An emerging strategy to increase diversity, enquiry and inclusion that corporations still underrate is utilizing financial wellness resources. Employing a comprehensive financial wellness program is a great way for management to understand and tackle the unique personal finance problems that confront each of their workers. It also can be a great way to retain and attract talent as 4 out of 5 employees said they would prefer benefits over a pay increase, per Human Resources Director.

A financial wellness solution is only an assistant on the journey towards equality. Being transparent and vocal with your employees about unequal discrepancies in wages can help increase employee mood and assist in restoring the economy. According to the Bureau of Labor Statistics, women make 82 cents for every dollar a man makes. Additionally, black and latina women with a bachelor’s degree make 65% of what a white man with the same education makes. This gap in pay can be easily overlooked when talking broadly about equity and inclusion, so addressing these problems head on is a great step forward towards a solution.

Many of these issues have been more prevalent since COVID-19 became an issue. Since the beginning of the pandemic, stress levels have increased across the board for many workers. According to SoFi at Work, 51% of employees are more stressed about their finances now than they were at the height of the pandemic. Additionally, employees spend around 25% of their workweek dealing with financial issues. This stress can be increased due to a lack of financial literacy and a feeling of hopelessness when confronting the turbulent economic situation of today. Providing a comprehensive financial wellness program can ease stress and allow workers to focus on their work.

Elevate your DEI initiatives with 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.

The State of American Financial Wellness and Financial Stress, 2022

The State of American Financial Wellness and Financial Stress, 2022

by | Dec 13, 2022 | Blog

The State of American Financial Wellness and Financial Stress, 2022. The Covid-19 pandemic changed Americans’ relationship to their personal finances. Here are the top financial wellness and financial stress highlights from 2022.

The Covid-19 pandemic has dramatically changed Americans’ relationship to their personal finances. Study after study has found that more than half of Americans live paycheck-to-paycheck. One- third of those earn more than $100,000 per year, but still struggle to make ends meet. Indeed, midway through 2022, a new survey found that nearly one in three consumers earning $250,000 or more annually is living paycheck-to-paycheck.[1] Another study[2] found that 75% of U.S. employees are facing at least one source of major financial stress and are spending 9.2 work hours per week dealing with their finances. 

Globally, consumers face extremely high rates of inflation while food, fuel and housing costs soar. Household debt climbed past $16 trillion in the second quarter, with credit card balances surging 13% in the past year. Rising interest rates strain pocketbooks, and that doesn’t include $1.6 trillion in student loan debt repayments, which have been suspended since the start of the pandemic, in 2020.

Clearly, personal financial stress is on the rise.

Generational Financial Stress

Americans from all generations struggle with financial stress: [3]

  • 63% of all employees say their financial stress has increased since the pandemic started
  • 42% of full-time employees struggle to pay household expenses on time each month
  • When it comes to personal finances, 87% of employees want help and 84%[4] believe their employers should be responsible for their financial wellbeing.

But, it appears that younger workers are struggling more:[5]

  • The majority of Gen Z and Millennials (about 70%) have high financial stress due to the pandemic;
  • 29% of Gen Z says the cost of living (meaning housing, transportation and bills) is their most pressing concern and 46% say they live paycheck-to- paycheck;
  • 72% of U.S. millennials carry some form of non-mortgage debt, with the average millennial owing $117,000;[6]
  • 63% of Millennials believe it will take them one to five years to pay off their debt, 9% think it will take them more than 10 years, and 6% think they’ll never pay it off; [7]
  • And while Millennials and Gen Z want to buy homes, Gen Z is currently unable to afford a median priced home in any of the top 100 markets. Millennials can only afford a median priced home in 34 of the biggest 100 metro areas.[8] 

Millennials, Gen Z and Student Loan Forgiveness

A top concern for many Millennials is their looming student debt. About 30% of Millennials carry a student loan, and in many cases, these loans have affected their ability to meet financial goals.[9] Over 30% of Americans put off buying a home because of looming student debt, and almost 25% of Americans have limited their retirement and emergency savings due to outstanding student debt.[10]

In August, President Biden announced widespread student loan forgiveness up to $10,000 of debt for borrowers who earn less than $125,000 per year or married couples (or heads of households earning less than $250,000). An estimated 37 million Americans out of 45 million who hold student loan debt may be eligible.

While those eligible for student loan forgiveness will not have to pay federal income tax on the amount that is forgiven (which the IRS treats as a gift), more than a dozen states may impose state income tax on the forgiven amount.

Baby Boomers, Gen X and Financial Stress

Conversely, Baby Boomers tend to report the least amount of financial stress. In fact, just 14% of Baby Boomers say that debt has affected their quality of life, and more than half say they have control over their debts.[11]

Gen X falls somewhere in the middle. They carry looming debt and financial stress, but are working to dial it down. In 2021, almost 48% of Gen Xers reported a good or great sense of financial wellness, up from 38% in 2020. This is the largest percentage point increase for any generation for reported financial wellness.[12]

However, across all generations — from Gen Z to the Silent Generation — financial wellness and security during retirement remains a primary concern.[13] 

Turnover, Retention & Financial Stress

There’s more bad news for companies struggling to keep employees. Several recent studies found that employees are more likely to look for a new job if they’re financially stressed.

  • Financially-stressed employees are twice as likely to change jobs as those who aren’t;
  • Among 44% of employees looking to change jobs[14], 65% say the reason is financial: they need more money;
  • 76% of employees looking to change jobs would prefer to work for a company that cares about their financial wellbeing;
  • 49% of employees have experienced a financial shock, including a significant medical expense (31%) followed by working hours cut (23%) fraud (15%) and the impact of divorce (13%).

Moreover, there’s a stark disconnect in what people want in financial wellness programs versus what they’re being given. Employers are well positioned to help change that. 

Financially Stressed Employees Have Worse Health Outcomes

One of the most concerning elements of financial stress is the relationship to physical and mental health. People who are financially stressed are much more likely to struggle with substance abuse, be overweight and have worse health outcomes than their non-stressed peers. They’re also much less likely to be engaged at work. But with inflation running rampant, other cracks are emerging:

  • One-third of those who find it difficult to afford healthcare deferred appointments or treatments and say their health suffered because of it;
  • For employees whose financial stress increased over the pandemic, about 60% avoided seeking medical treatment due to high costs;
  • Among financially-stressed employees, 49% said that money worries had a severe or major impact on their mental health in the past year.[15] 

One way to improve workforce financial wellbeing is to help employees make a smarter decision about healthcare coverage. Best Money Moves’ partners have seen employees save an average of $1,300 per year simply by making better decisions based on actual claims data, while employers have seen usage go up and, in some cases, overall costs decline.

Financial Health of Americans

About 35 million Americans are estimated to be financially vulnerable, which means they’re struggling with almost all aspects of their financial lives. Comparatively, about 131 million Americans say they’re coping financially, while struggling with some aspects of their financial lives.[16]

Many societal and pandemic-related trends have shaped the financial challenges people face (e.g., rising costs of living, workplace instability, earning gaps, etc.).

Although almost 80% of Americans have an emergency fund, less than half can cover six months of expenses. And even those with high financial wellness, one in five cannot easily cover six months of expenses.[17] All of this paints a worrying picture of financial health for most Americans, especially with many economists forecasting a recession in 2023. 

Employees want more than just retirement assistance

One of the most-requested benefits in 2022 is financial wellness support. Companies tend to only offer retirement plans and safety net insurance. Employees don’t think it’s enough.

Over 80% of employees want personal finance help from their employers, beyond the typical retirement plans and safety net insurance.[18] Employees need to learn basic money management and prefer to get money coaching, budgeting help and other resources that can help them achieve their financial goals.

The benefits are clear: employees who participate in financial wellness programs are twice as likely to have high financial wellness than those not offered such resources (32% vs. 15%).[19] The ROI for employers includes reduced turnover, improved retention and productivity, fewer workplace accidents and healthier employees, among other benefits.

Best Money Moves can help. Personalized, gamified and easy-to-use, Best Money Moves helps employees budget, make better financial decisions and implement their personal best money moves to achieve their most specific financial goals.

About Best Money Moves

Best Money Moves helps your employees measure and dial down their financial stress, with measurement tools, 900+ written and video resources, and best-in-class voluntary benefits to supplement those you already offer. Depending on the version chosen, you may be able to integrate your own company benefits into the platform, personalizing the financial wellness journey your employees are on. Call us for a demo and find out how adding a great financial wellness benefit can help improve retention, lower turnover and reduce healthcare costs.

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.

1 New Reality Check: The Paycheck-To-Paycheck Report – Financial Distress Factors Edition, PYMNTS and LendingClub survey, 2022
2 https://www.sofi.com/sofi-at-work/workplace-2022/
3 2021 PwC Employee Financial Wellness Survey, PwC, 2021
4 https://www.sofi.com/sofi-at-work/workplace-2022/
5 https://www.forbes.com/sites/markcperna/2022/05/23/deloitte-almost-half-of-gen-z-workers-live-with-financial- anxiety-every-day/?sh=3ecd0cd97073
6 https://www.realestatewitch.com/millennial-debt-2022
7 https://www.realestatewitch.com/millennial-debt-2022
8 https://www.point2homes.com/news/us-real-estate-news/unaffordable-housing-by-generation-100-counties.html
9 https://educationdata.org/student-loan-debt-by-generation
10 https://www.cnbc.com/2021/04/08/older-millennials-with-student-debt-say-their-loans-werent-worth-it.html
11 https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/2021-WBR.pdf
12 https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/2021-WBR.pdf
13 https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/2021-WBR.pdf
14 https://www.wtwco.com/en-US/Insights/2022/06/2022-global-benefits-attitude-survey
15 https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness- survey.html
16 https://fhn-finhealthnetwork-assets.s3.amazonaws.com/uploads/2021/10/2021_Pulse_Trends_Report.pdf
17 https://www.tiaa.org/public/pdf/2022_financial_wellness_survey_final_results.pdf
18 https://www.brightplan.com/2021-wellness-barometer-survey
19 https://www.tiaa.org/public/pdf/2022_financial_wellness_survey_final_results.pdf 
Financial Wellness Platforms: How To Launch the Best One for Your Employees

Financial Wellness Platforms: How To Launch the Best One for Your Employees

by | Nov 2, 2022 | Blog

Financial Wellness Platforms: How to launch the best one for your employees. Financial wellness platforms can help support employees through tough times. Here’s how to launch the best one for your team. 

Employees are feeling the heat. According to John Hancock’s 2022 study of stress, 89% of employees said it was important that employers provided a financial wellness program and 74% said a financial wellness program would help reduce their stress. 

Choosing and implementing the right financial wellness platform for your company is critical for reducing employee stress and increasing productivity. Here are 3 steps a company needs to ensure a successful financial wellness program.

1. Evaluate your team’s need for financial wellness platforms.

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. 

The most successful financial wellness platforms will include a wide array of tools and resources. Some of the best will include:

  • Personalized solutions. Personal finance is a wide-ranging topic that can affect many areas of life. According to a PWC study, the most requested employee benefit is a financial wellness program that grants access to unbiased counselors. However, Best Money Moves grants access to trained, accredited professionals that are tailor-made to help each individual.
  • An easy-to-use interface. It can be a big leap for many employees to ask for help on their personal finances and it can be overwhelming to figure out where to begin. According to PWC, 41% of financially stressed employees said they were too embarrassed to ask for assistance on their personal finances. Best Money Moves lends a helping hand and provides detailed instructions on where to start and how to use our services.
  • Intuitive tools. One of the most important components of a financial wellness platform is the tools made available for employees to use. According to a Sofi study, 62% of employees requested budgeting tools as a part of their wellness package. The Best Money Moves platform provides a simple and effective budgeting tool that takes user data and personalized solutions. In order to ensure a successful program, the employer has to take extra steps in the form of emails and meetings to ensure their employees have a full grasp of their benefits.

3. Take time to implement your chosen program

It’s integral to introduce a plan that can be easy for employees to comprehend. According to TIAA’s 2022 Financial Wellness Survey, 9 in 10 employees with high financial wellness scores reported that they understand their program very well compared to 4 in 10 with low financial wellness scores. In order to ensure a successful program, the employer has to take extra steps in the form of emails and meetings to ensure their employees have a full grasp of their benefits. 

Also, it’s beneficial to have metrics within the programs that show employers how often their employees are interacting with the program. 

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

Focused on user-friendliness, Best Money Moves is designed to bring financial wellness resources right to the fingertips of employees. Our dedicated resources, partner offerings and 700+ article library make Best Money Moves a leading benefit in improving employee financial well-being.

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.

4 Benefits to Support LGBTQ+ Employees in the Workplace

4 Benefits to Support LGBTQ+ Employees in the Workplace

by | Aug 10, 2022 | Blog

4 benefits to support LGBTQ+ employees in the workplace. These 4 key benefits can provide additional support to the unique challenges facing LGBTQ+ employees in the workplace.

Members of the LGBTQ+ community report disproportionate levels of financial stress compared to straight and cis-gendered peers. In a survey of 2,005 LGBTQ+ Americans conducted by the Motley Fool, over two-thirds of respondents rated their financial stress as “very high.” Another 38% rated their stress as somewhat high. With this in mind, here are just a few benefits to support members of the LGBTQ+ community in your workplace.

1. Improve benefits education for LGBTQ+ employees

A MassMutual study revealed that 53% of LGBTQ+ workers are unsure where to go when it comes to getting financial advice. Increasing access to benefits education is one of the best ways you can help employees. It’s important for team members to know exactly what benefits are available and how they apply to them.

Let LGBTQ+ employees know that they qualify for family and spouse benefits too. Only 50% of employees are out to their current supervisors, according to Williams Institute, so use gender-neutral language during benefits education. Rather than referring to husbands or wives, aim to refer to a “spouse” or “partner” so they know they too qualify for these benefits.

2. Educate employees on retirement program options

Retirement is something all people need to prepare for, but for members of the LGBTQ+ community, financing retirement can be particularly stressful. Fifty-three percent of LGBTQ+ members report being worried they’ll never retire in comparison to just 39% of straight and cis-gendered peers, according to a study from Lincoln Financial Group. Establishing and sharing information on your employee’s retirement plan options can help limit a portion of their financial stress.

3. Provide family planning resources for LGBTQ+ families

While family planning resources should always be offered to your workforce, these resources are crucial especially for LGBTQ+ employees who may be exploring a wide array of paths to parenthood. For most LGBTQ+ couples, this process could include surrogacy, private adoption, foster care, IVF or more. 

Many family planning options can be expensive. IVF alone can cost over $23,000, with adoption costs even higher. According to a study done by FamilyEquality.org, roughly 45-53% of LGBTQ+ millennials are planning to become parents in the future. With these numbers in mind, supporting employees by providing a full range of resources can help with both financial and general planning.

4. Offer financial wellness solutions

The same study from Lincoln Financial Group found that roughly 47% of the LGBTQ+ community has expressed feeling significant financial stress in comparison to just 36% of the general population. Roughly 69% of the LGBTQ+ community also says this stress also impacts their ability to manage or improve their personal finances. Offering financial wellness solutions can help dial down stress for all employees, but especially the disproportionate financial stress LGBTQ+ employees experience.

Attract and retain top talent with financial wellness solutions 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 wellbeing 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.