Information for Employers
From an employer’s perspective, a financial wellness program can provide:
- Lower employee turnover,
- Lower healthcare costs as a result of less financial stress taking a toll on employees,
- Lower absenteeism, and
- Significantly impact employees’ retirement preparedness
Early research suggests that companies that offer this sort of benefit could save $1-$3 for each dollar they spend, according to a recent Consumer Financial Protection Bureau report.
Financial Security more often refers to individual and family money management and savings. It is the condition of having stable income or other resources to support a standard of living now and in the foreseeable future. It includes:
- probable continued solvency
- predictability of the future cash flow
- employment security or job security
Financial Wellness is a comprehensive approach to assess and support the “overall financial health of an individual.” Financial wellness programs offer unbiased financial education on all aspects of an individuals financial life. These programs are focused on changing employees’ financial habits and behaviors, and helping them make informed financial decisions and create strong financial plans to enhance the employee’s overall financial well-being. Financial wellness programs most often support an employee’s ability to manage both short-term and long-term needs.
Sources: Wikipedia and CFPB Financial Wellness at Work