Our special report, “An Employee Crisis: Financial Literacy,” discusses the lack of money management skills and knowledge among employees which leads to financial stress and affects their productivity. It also outlines the steps employers can take to improve the financial literacy of their employees.
The report illustrates financial struggles – such as having trouble meeting monthly household expenses and not having $2,000 in emergency savings for unexpected expenses – and the surprising percentage of employees who are facing them. And the reason why employees could be having financial issues points to a lack of financial literacy when you look at the statistics of how many don’t have a planned monthly budget; don’t put anything into savings each month; and run short on funds then use credit cards to pay some of their monthly expenses (such as phone, cable, utilities, etc.).
In today’s economy, hard-working Americans continue to struggle with their financial situation. They have trouble meeting monthly expenses, making minimum payments on credit cards, obtaining major purchases they need to make and saving money for unexpected emergencies. Their financial stress affects their job performance, making it a problem for their employer. This underscores the need for employers to provide financial wellness education and benefits to help employees improve their financial literacy. Further, employees are looking for these kinds of opportunities from their employers.
Companies can incorporate financial wellness tools into their employee benefit package through various ways including online financial education resources, taking advantage of value-add resources from their current benefit providers; and non-profit financial counseling services. Other programs are available that help employees with their short-term financial needs including employee purchase programs, discount programs and short-term loans.