Financial Wellness

How Financial Education and Guidance Can Help Worried Workers

Discover four ways that financial education and financial guidance may help to alleviate employee financial stress.

Did you know that finances and the economy are among the top stressors for Americans,1 and those worries carry over into the workplace? It’s true. In the second annual Morgan Stanley at Work State of the Workplace survey, 71% of employees said that money-related stress negatively affects both their work and personal lives. Helping workers fine-tune their budget could help reduce that stress.

 

Cultivating a more financially resilient workforce can help boost productivity and engagement—a win-win for both you and your employees. Those who have access to financial wellness support from their employers say it can lead to more satisfied, loyal, engaged and productive employees.2 

 

Yet offering financial wellness programs is just the first step. Building awareness and consistently communicating about these programs is equally critical—and is an area where employers may be lagging. In fact, 96% of HR leaders and 89% of US employees say their companies need to improve on helping them understand how to maximize their financial benefits.3 That creates an ideal opportunity for employers to offer assistance in the form of access to financial education and planning tools. 

The Case for Financial Education and Guidance

Employees may be worried about everything from a spouse’s unemployment to current news headlines to a reduced retirement account. Here are four ways such concerns can be addressed through targeted financial education and personalized financial guidance:

  1. 1.
    Managing debt.

    Over the past year, HR leaders agree that employees have faced greater challenges than they did one year ago paying off debt and managing their finances.3 A robust learning curriculum delivered through digital tools and in-person education may provide employees with the insights that support them in reducing their debt burden over time. 

  2. 2.
    Planning for the future.

    By providing financial guidance, you can give your employees access to a financial professional who can help them better understand their short- and long-term financial needs and develop a plan to meet their personal financial goals, whether that means reducing expenses, establishing focused savings accounts, understanding their potential investment options or planning for retirement.

  3. 3.
    Putting technology to use.

    There are a variety of resources—from mobile apps and digital portals to more traditional budgeting spreadsheets—that can make your financial wellness benefits more accessible to employees. Solutions that start each participant’s journey with a financial wellness assessment may deliver personalized digital experiences tailored to each employee.

  4. 4.
    Supporting financially responsible self-care.

    On top of the stress, financial worries can take a toll on workers’ mental well-being. Access to ongoing education and guidance from a financial professional may help them approach money decisions more mindfully, potentially reducing the financial stress. 

The past few years have required workers to make a lot of adjustments—to day-to-day lives, to their work and to their finances. With the help of financial education and financial guidance, your workforce may be able to implement some thoughtful changes that can help make a big difference in preparing for the road ahead.

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1 American Psychological Association (2020): Stress in America 2020. Accessed August 23, 2022

2 Bank of America. Accessed April 25, 2023. https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/09/bank-of-america-study-finds-84--of-employers-now-say-offering-fi.html

3 Morgan Stanley at Work “State of the Workplace 2022 Research Study. https://www.morganstanley.com/content/dam/msdotcom/atwork/state-of-workplace-financial-benefits-study-results-2022/state-of-the-workplace-study.pdf

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