Financial Education as a Key Employee Benefit

In today's world, where financial complexities are ever-increasing, employees are seeking more than just a paycheck from their employers. Financial wellness benefits are becoming increasingly important as employees navigate various financial decisions throughout their lives.

The Growing Importance of Financial Wellness

Employees now want help with their finances. Financial stress can significantly impact an employee’s life, affecting their health, well-being, and productivity. A recent PwC survey found the vast majority of employees now want help with their finances. Given the amount of stress that finances can create in an employee’s life, it makes perfect sense.

The Impact of Financial Stress

Stress relating to personal finances isn’t new. But with rising inflation, we’re hearing more and more about the need to help employees with financial wellness. Traditionally, helping… Financial stress isn't limited to those in low-income brackets. It affects employees across all income levels and life stages. The average American owed $103,358 in 2023. As interest rates fluctuate and inflation pressures persist, many households are finding it harder to keep up with payments, leading to increased financial stress and decreased long-term stability.

The physical effects of financial stress might include increased irritability, mood swings, appetite changes, stomach issues, fatigue, and insomnia. Left unchecked, these symptoms may lead to mental health concerns like anxiety, depression, or even suicide.

Employer Responsibility

A Bank of America survey found that 97% of employers now feel responsible for employee financial wellness (up from 95% in 2021, and from 41% in 2013).4 Given that financial stress can impact employee health and well-being, and productivity on the job, it makes sense that more and more employers are stepping up support for financial wellness. This growing sense of responsibility highlights the shift in how employers view their role in supporting their workforce.

What are Financial Wellness Benefits?

Financial wellness programs work by providing participants with the education and tools they need to manage their health. The same holds true for financial wellness-if employers give employees the tools they need to manage day-to-day finances, weather unplanned expenses, and help them plan and save for future milestones, we can hopefully ward off financial crises and ultimately improve their overall health and well-being.

Traditionally, employers have focused on retirement plans, such as 401(k)s. However, financial wellness programs address the broader spectrum of financial decisions employees face, such as budgeting, buying a home, or saving for education.

Examples of Financial Wellness Benefits

Whether you partner with an outside financial wellness provider or create an in-house program, you might consider offering employees:

Online financial tools, calculators, and mobile apps: These resources can assist with budgeting, saving for college, retirement planning, and more.
One-on-one financial counseling and coaching: These services can help employees solve immediate financial concerns and set goals for the future.
Financial education classes and seminars: Led by financial experts, these sessions can cover topics like smart investing or easy ways to save.
Debt management services: These services can help with student loan repayment or paying down credit card debt. Some employers are even providing direct financial assistance with repaying student loans.
Short-term loans or wage advances: These options allow employees to access low-interest cash in an emergency and repay the loan through payroll deductions.
Employee Assistance Programs (EAPs): EAPs often include financial tools and resources, such as help with identity theft.

Six Reasons Why Financial Wellness is a Must-Have Benefit

Offering financial wellness benefits is more than just a perk; it's a strategic investment in your workforce.

Increased Employee Engagement: Financial wellness benefits show that an employer cares about employee well-being beyond the work day and can contribute to a healthy workplace culture.5 According to Bank of America, 80% of employers agree that offering financial wellness support can result in more satisfied, loyal, engaged and productive employees.6
Enhanced Productivity: It’s no secret that employees who are financially stressed can be distracted at work and often devote work hours to handling financial issues. They also might need to take time off to handle financial matters, increasing absenteeism. Offering financial wellness benefits can alleviate some of this stress and help employees be more productive in their work.
Better Employee Health and Well-being: Providing support for financial wellness can improve the employee population’s health, and possibly lower healthcare costs in the long run.
Increased Retention: A recent Bank of America report revealed that 84% of employers now say that offering financial wellness tools can help reduce employee attrition.8 Research by Purchasing Power found 61% of employees who have utilized their platform’s particular financial solution are more likely to stay with their current employer.9
Talent Recruitment and Employer Brand: Much like other well-being benefits, job seekers are looking for employers who offer perks and support for financial wellness. Companies who offer these benefits may be viewed more favorably not only by job seekers, but also customers and the public, enhancing an employer’s brand and reputation.
It’s the Right Thing to Do: Educating employees about financial concepts, such as budgeting, saving, investing and debt management, can help improve the workforce’s financial literacy and lead to long-term financial stability, particularly for historically marginalized groups.

How to Implement a Financial Wellness Program

Implementing a successful financial wellness program requires a strategic approach that considers the unique needs of your workforce.

1. Survey Employees to Learn About Their Financial Concerns

When starting from scratch or re-evaluating your current benefits offerings, it's important to open a line of communication with employees. Survey them to understand their needs and struggles. It's crucial to know how many employees own homes or have student debt, as this information can be leveraged to better support them. Tracking these details can reveal opportunities to enhance your benefits offerings and improve employee satisfaction. Once the survey is fielded, you’ll understand the most important areas to focus on in your financial literacy programs.

2. Offer Targeted Guidance for a Financially Diverse Workforce

Employees in different stages of life may want different financial guidance and the survey you conduct can help to identify this. Millennials may be interested in saving for a house or paying off student loans. Gen X workers could be interested in maximizing college savings for children or resolving credit card debt. Baby Boomers could be focused on retirement and end-of-life benefits. Offering opportunities that align with the specific financial concerns of your employees will help ensure that they’re getting the information they want most to alleviate their personal financial stresses.

3. Raise Knowledge with Customized Communication

Ensuring your workforce knows about what benefits are available is crucial. However, as workers from different generations will have specific financial concerns, communication also isn’t a one-size-fits-all model. Customizing financial benefits awareness campaigns to fit the different generations of your workforce will help amplify their impact. It’s a win-win.

4. Build and Leverage Partnerships

When offering options like long-term disability insurance, term and whole life insurances, and a 401(k) program, having a well-coordinated and in-depth enrollment meeting is important. Around annual enrollment time, leverage your benefits provider to bring in a professional and go through the options that are available, highlighting where there’s value relative to your employees’ specific circumstances. Ask them to set up a seminar/webinar to provide an overview and try to include 1-on-1 availability so they’ll be able to answer more nuanced questions clearly. There are also lots of helpful apps and companies that specialize in financial literacy. Reaching out to create a relationship could lead to offering a tangible new tool or a knowledgeable voice to help guide your employees.

5. Create a Clear Culture of Support

Personal finances and asking for help can each independently be viewed as rather taboo topics. When combined, there’s a likely chance that some employees may feel embarrassed or uncomfortable about coming forward to utilize their benefits. Seek to create a clear and apparent culture of support. Do your part to reduce stigma and invite open conversations about financial literacy that can work to dispel the “money script” that talking about finances is inappropriate. Lead by example and show your workers the importance of financial education and transparency, which will in turn help employees to reduce their own financial stress and promote a more productive workplace.

The Role of Financial Education

Financial education is a source of empowerment. Much of the anxiety and stress around money comes from feeling a lack of control over our finances, often because things can get complicated and overwhelming very quickly. The more you learn about and truly understand all aspects of your financial situation, the more empowered you are to take control of it and change it for the better.

The Current State of Financial Literacy

Financial literacy rates have been consistently low for some time. Despite 35 states now requiring K-12 students to take a course in personal finance to graduate, up from 12 in 2022, today’s working generations, Gen Z to baby boomers, didn’t share the same access to the same financial literacy during their time in school.3 Guardian's report, Mind, Body, and Wallet® 2025 What’s your well? How Americans define well-being, found that money is been the top source of stress for the majority of US adults.4 An insufficient financial education can cause serious struggles. Uninformed financial decisions can greatly affect the areas of one’s life from mental health, physical wellness, and even work productivity.

How Financial Education Can Combat Financial Stress

The Material Benefits of Providing Financial Education

Tangible personal financial benefits: Employees participating in financial wellness programs often report better financial outcomes, such as increased savings and reduced debt.

Tools and Resources for Financial Empowerment

Several resources are available to help individuals improve their financial literacy and manage their finances effectively.

Consumer Financial Protection Bureau (CFPB): The CFPB offers a range of financial empowerment materials, including the "Your Money, Your Goals" toolkit.
Federal Deposit Insurance Corporation (FDIC): The FDIC's Money Smart Education Program helps people of all ages enhance their financial skills and create positive banking relationships.
Earned Income Tax Credit (EITC) Assistant: This IRS guidance helps people determine if they should claim the EITC, a refundable tax credit for eligible low-income workers.
Employee Benefits Security Administration (EBSA): The EBSA helps individuals understand their rights and responsibilities regarding retirement, health, and other workplace benefits.
Social Security Administration (SSA): The SSA administers the Social Security and Supplemental Security Income (SSDI) disability programs.
Volunteer Income Tax Assistance (VITA): This program offers free tax assistance to low- to moderate-income individuals and families.

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