Monday, July 27, 2020

What are Employees Looking For in a Financial Wellness Program?

According to the article "Offering financial wellness education could improve employee productivity", employees want a program that can reduce their financial stress and improve their retirement outcomes.

But how does an employer create the right financial wellness program for their employees?

Recent studies show that the following tips will help your financial wellness education program be successful:

  • It's easy to follow
  • Goals are set
  • Content is engaging
  • Group size is small
  • Provides connection with financial institutions
  • Includes budgeting tools
  • Includes savings calculators
  • Provides access to professional advice 

Friday, July 24, 2020

Saving During a Recession

We're constantly reminded to prepare our finances for the future, but how do we protect our hard earned money during a recession or pandemic?

Although we can't perfectly predict when the next recession or pandemic will arise, we can at least prepare.

Some ways to prepare your finances for a recession are by creating an emergency fund, living within your means, limiting your existing debt, having an emergency plan for investments, and searching for a "recession-proof" job. Although finding a new job that is safe is tough, it will help decrease the amount of stress that comes with loosing a job. These are just a few of the ways we can protect ourselves during these odd times, but the article "How to Save Money During a Recession" will go into further depth.

$600 A Week Stimulus Ends Tomorrow

Luckily for the U.S. economy, Congress passed the Cares Act to help out unemployed Americans. As of today, the extra $600 stimulus is set to end on July 25th. This means that Americans will no longer receive the weekly $600, but will Congress extend this date?

Speculations show that Congress has three options regarding this topic. They can refuse to extend the unemployment benefits, use a stop-gap measure for benefits, or extend the benefits but cut the weekly amount.

It seems to be that the most popular decision would be to extend the benefits but reduce the weekly benefits amount. This could mean that those on unemployment will be receiving around $200 to $300 per week rather than $600. The next few days will be very important for our countries economy. For more information, visit "Stimulus Update: $600 A Week Unemployment Benefits End Tomorrow".

Wednesday, July 15, 2020

What is Financial Wellness

What exactly is employee financial wellness?

Financial wellness or well-being refers to an employee’s overall financial health and knowledge. How well a worker can manage money impacts their morale, engagement, and productivity, among other factors, at work. 

Why is financial wellness important?

Employees who have their finances in order (the ability to pay bills on time, have savings and emergency funds set up, etc.) are often in a better position to put their energy and focus on work, be more engaged, and stay productive. On the other hand, an employee who struggles financially may be unproductive if they have to deal with money matters during work hours. They may also be stressed or disengaged, which can cause a ripple effect throughout the rest of your staff. 

For information about how employers and employees can benefit from financial wellness, visit "Financial Wellness"

Financial Wellness Programs

As a financial wellness service, we are always thrilled to find articles that bring to light the importance of a financial wellness program/plan.

Employers can guarantee that their employees are stressed about their finances. This has been an ongoing concern for both employers and employees.

Employees stressed about finances bring that stress to the job, costing U.S. businesses about $500 billion each year. That means the average businesses loses about $2,800 per employee per year just due to financial stressed employees.

A study showed that 38% of daily tasks go unfinished, 34% of work quality diminishes, and 14% of employees will seek other employment due to their financial stress. This data is extremely useful for both employees and employers. For more information regarding the importance of a financial wellness program/plan, visit "Financial Stress Affects Your Business".

Wednesday, July 8, 2020

Unemployment is Taxed!!!

The extra $600 a week for unemployment is helpful, but let's be aware that this money is not tax free!!!

Unlike the stimulus check which is tax free, any money that we receive from the federal or state government for unemployment is included in our gross income and taxed at your ordinary income rate. Many Americans forget that the extra $600 a week will be taxed along with the base amount that unemployment grants us.

This "free" money isn't free, and we must be aware that it will be accounted for when tax season comes back around. Visit the article from  "Business Insider" for further information.

Wednesday, July 1, 2020

Three Things My Boss Should Know About Me and My Finances

Part 1:
According to Workplace Insights, Millennials are more likely than Generation X and baby boomers to be concerned by finances, a stress that bleeds into our work. I certainly fit the bill. As someone who has yet to put Ramen eating days behind her, I have some solid financial stress.

As least I'm not alone. Others like me are wading around in a sea of financial misunderstandings, and our employers can help. With widespread financial misunderstanding in mind, here are three things our employers should know about those of us entering the real world and how we can help each other:

  1. Thinking about finances gives me anxiety.
  2. I do not know what financial wellness is let alone how to achieve it. 
  3. Despite my current ignorance, I want to know and understand the financial world. 

Part 2:
While training for my first 9-5 job, I had to elect what percentage of my income I wanted to allocate towards my 401k. Rather than logically considering my future, I panicked and, in the spirit of full disclosure, determined to invest nothing. My employer offered the service, a 401k, but not the education. 

At the time, I thought about setting up a savings account, but that involved contemplating the dreaded F word (finances), so I have yet to do so. That's right, I currently have absolutely no money going towards my future financial emergencies or my retirement because I froze. 

I can't be the only one who freezes at the thought of finances. Financial planning comes up, and everyone smiles and nods as if we all know something about financial wellness but I would wager that most of us don't. 

Part 3:
I'm a college graduate; I know everything there is to know about finances, right? Wrong. I have never made a budget; I do not have a savings account; and, I call my parents every time tax season rolls around. 

To financially inform me, one would have to start at group zero. It is not that I have not tried. it is that I do not know where to begin. Every time I start researching anything remotely financial, I feel like I've bitten off far more that I can chew, becoming instantly overwhelmed. The definition of one word involves googling yet another word. 

I long for someone to kindly sit with me and break finances down for me, guide me through things through step by step. Someone who respects my strengths while conceding that finances is not currently one of them. 

Employers are offering financial incentives. But, I'm looking for an employer to provide me with the means of helping myself. When I'm educated on said incentives, I can take my pride in my finances and throw myself more fully into my work. 

There you have it folks. the things I wish my boss knew about me, and my financial knowledge as a twenty-soothing year old. 

-Written by Financially Fit Employee's Team Member Emi Bartholomew-