financial wellness program
What Is Financial Wellness?
Financial wellness – sometimes referred to as financial well-being – means the ability to have a healthy financial life.
It is being in a situation where you control your day-to-day and month-to-month finances while having the freedom and security to deal with financial emergencies and still stay on track to meet your long-term financial goals. The U.S. Consumer Financial Protection Bureau (CFPB) identifies four elements that define financial wellness or well-being.
4 ELEMENTS OF FINANCIAL WELLNESS
Source: Consumer Finance Protection Bureau
Impact of Financial
Stress on Employees
60% Say Financial
Stress Affected Their
Ability To Focus
33% Say Financial Stress Caused Them To
Miss Or Be Late To Work
Source: Foundation for Financial Wellness
Preoccupation with money problems can cause a cognitive decline of 13 IQ points – about the same as losing a full night’s sleep – according to a 2013 study published in the journal Science.
Source: Association for Psychological Science
did you know?
Employers feel "extreme responsibility" for employees' financial wellness.
By 2019, 53 percent of companies offered financial wellness programs, compared to just 24 percent four years earlier, according to a survey by Bank of America.
Also, more employers now believe they have an “extreme responsibility” for their employees’ financial wellness – more than a four-fold increase between 2013 and 2020. Employers are partly driven toward improving workers’ financial wellness because it also improves their bottom line. Other surveys suggest that financial stress makes workers less productive. At the same time that businesses are expanding access to financial wellness programs, the number of individual workers who rate their own financial wellness as good or excellent is declining.
Source: Bank of America