WHITE PAPER
Employee Financial Well-Being Pays Dividends for Employers
Worry Less. Thrive More.
We get it: More than a third of us would have a tough time paying an unexpected expense of $400. This data point, stated (and misstated) in more than a thousand 2014-2021 news features, frequently anchors employers’ rationale for financial well-being programs.
Americans do, indeed, need to be better educated and more skilled when it comes to personal finance, but not just to afford an emergency expense. Most of us have the potential, with a little effort, to ease our worries while building on the happiness and confidence financial literacy and empowerment provide. A safety cushion is an essential start, but only part of the story.
Employee Financial Well-Being Pays Dividends for Employers
Worry Less. Thrive More.
We get it: More than a third of us would have a tough time paying an unexpected expense of $400. This data point, stated (and misstated) in more than a thousand 2014-2021 news features, frequently anchors employers’ rationale for financial well-being programs.
Americans do, indeed, need to be better educated and more skilled when it comes to personal finance, but not just to afford an emergency expense. Most of us have the potential, with a little effort, to ease our worries while building on the happiness and confidence financial literacy and empowerment provide. A safety cushion is an essential start, but only part of the story.
“Financial well-being is a state-of-being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life.”
— Consumer Financial Protection Bureau (CFPB),
Financial Well-Being in America
A person with financial well-being…
- Continuously develops their financial literacy; as CFPB points out, this includes:
- Knowledge: Learning, finding, and using information to make sound financial decisions
- Behavior: The capability and skill to put financial knowledge into action
- Personal traits: the attitudes and beliefs — like perseverance, impulse control, and confidence — that regulate how knowledge influences behavior
- Creates and implements a plan to limit debt and grow assets
- Is free from harmful levels of financial stress
- Maintains a financial reserve to manage and recover from unexpected expenses and setbacks.
Universal Need
Financial well-being — like other dimensions such as physical, mental, and community health — is important to each of us. After all, most Americans identify money as a major source of stress.
Enhanced financial well-being is an aspiration for those with diverse circumstances and in all stages of life — like anyone:
- Making decisions with major financial ramifications (for example, whether to buy or rent a home)
- Creating a budget, but not sure what to include
- Getting started investing
- Feeling burdened by debt
- Confused about healthcare coverage
- Planning to help fund a child’s college education
- Saving for a car, home appliance, or other major purchases
- Struggling to pay bills
- Uncertain whether to have more (or less) insurance
- Wondering whether it’s possible to earn more money
- Experiencing family conflict due to spending habits
- Unsure of financial solvency
- Approaching retirement
- Feeling unable to get ahead
- Seeking more control over life.
Even having sufficient resources and being on track to abundance won’t assure confidence, especially if we recognize gaps in understanding personal finance.
Thank you for your interest.
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