According to a recent US survey, the answer may alarm you.
April is financial literacy month, and it has never been more important for employees to have a trusted financial professional than it is now. The COVID-19 pandemic has created a challenging financial landscape and acted as a catalyst to existing longstanding financial issues for many employees. Carefully calculated, sound financial decisions contribute to a less stressful lifestyle and decreased anxiety. They also create a happier and more stable workplace environment. But how many people actually have someone to turn to for credible financial advice? The reality is, not as many as you might think.
The National Financial Educators Council (NFEC) conducted a survey in October 2020. More than 1,000 people across the US were asked one question:
Incredibly, just over one-third consulted financial professionals for financial guidance. The remaining 64% had nowhere to turn for expert coaching on how to make the best financial decisions. The NFEC went on to state that the “…survey results indicated that many people lack access to trusted, qualified professionals who offer financial guidance, especially the younger adults who responded.” This is disconcerting.
Making financial decisions without proper guidance can be devastating. One wrong move can ruin your credit score, severely impacting your ability to take out a car loan or a mortgage on your first dream home. And that’s just one unfavorable scenario. What about the detrimental consequence of not contributing to a retirement fund at an early age, or not paying off student loans more aggressively and owing more than you started with in 10 years? Additionally, some employees take no financial action at all due to overall uncertainty and fear of making the wrong choice. Being in any challenging financial situation can cause employees to become disengaged, trigger absenteeism, and can even lead to job abandonment.
Offering your employees a financial wellness solution with personalized coaching is more essential now than ever. BrightDime helps empower employees to plan a more financially secure future and reduce money stressors. The ability for your employees to make well educated financial decisions will prepare them for success and support your organization’s work culture and long-term goals.