5 Tips for Employee Financial Wellness
Just because an employee may make a lot of money, it doesn’t necessarily mean that they are in a good financial situation. In fact, based on a recent article from Benefits Pro, the average American will spend over $600,000 in interest over the course of their lifetime. That same American household has an average of $15,863 in credit card debt! Indeed, finances can be a major stressor, which is why financial wellness is such a critical component to employee well-being.
Below are 5 tips to help your employees increase their financial wellness:
- Embrace Technology– It’s true that we have more financial tools at our fingertips than ever before. The most helpful are the budgeting tools out there. Such tools are allowing you to combine accounts from multiple banks into one dashboard, and even sort your transaction data to help you create and stick to a budget. Smartphones are making a difference as well. Apple Pay and Android Pay are two other great tools available to make spending easier and more secure.
- Invest in your 401k– Saving for retirement with 401ks is one of the most painless paths to financial wellness. 401ks (or their nonprofit proxies 403bs) are, for the most part, included as a benefit of employment. This benefit teaches you financial principles like tax-avoidance, tax-deferral, and the time-value of money.
- Know your team– Relationship banking is more important than ever. There are so many options, confusing materials and endless information on the internet that can be both good and bad. You have to have a team that can help you through this process to achieve your goals. You know your doctor’s name. You know your insurance agent’s name. You know your kid’s teachers’ names. Who is your banker? What is their name? Do you have a relationship with him or her? Utilize that relationship and use it to your advantage. Let that person be your resource.
- Pay yourself first– Part of your budget should be paying yourself. Start with an emergency fund. Make sure you are covered when life happens so you don’t have to use a credit card or a cash advance store.
- Know your score– Most people are scared to death to look at their credit score. Don’t be.It’s okay to look at your score and full report at least once per year. It’s also highly recommended to have some form of identity protection. A good credit score helps you to get the best rates available when you need to borrow money.
With the help of these 5 tips above, you can ease your financial peace of mind!