Amid a complex and ever-changing economy, any employee, even those in high-earning positions, might struggle financially. Financial difficulties can place a significant burden on individuals, affecting their life at work and at home.
Financial wellness benefits are becoming an increasingly sought-after benefit in the job market. Employees now expect employers to take more responsibility for providing financial education and wellness information to their staff. They may look for this help in your benefits package.
Lifestyle Spending Accounts allow you to offer financial wellness-related programs for your employees. Your company will have opportunity to provide employees with the financial programs they need.
Why is financial wellness important?
Financial wellness is an area that most Americans struggle with. A study published in 2020 by Varo Money revealed that:
- 79 percent of people said they were either somewhat or incredibly stressed about having enough money.
- 90% of those surveyed said they felt like they did not save enough money to cover unexpected expenses.
Financial wellness and mental health
Mental health is an increasingly common struggle for millions of people. In fact, the WHO estimates that 5 percent of adults globally suffer from depression. In addition, according to the National Alliance on Mental Health, more than 40 million U.S. adults struggle with anxiety.
Data suggests that financial wellness and mental health can often be closely linked. A 2019 study by the Money and Mental Health Policy Institute revealed that 46 percent of respondents with debt also struggled with a mental health problem. Additionally, 86 percent of respondents said their financial situation worsened their mental health.
Financial wellness and physical health
Lack of financial wellness can lead to increased stress levels, which can manifest itself in a variety of physical symptoms. Here are some common physical indicators of stress:
- Lack of sleep (48% of U.S adults reported losing sleep over money)
- Weakened immune system
- High blood pressure
Lack of financial wellness may make it difficult to lead a healthy lifestyle. Time spent on exercising and money spent on nutritious food may not be feasible for an individual struggling to make ends meet. Moreover, the physical effects of financial difficulties can eventually create a cycle in which medical expenses compound financial stress due to poor health.
How employers benefit from financial wellness
Financial wellness is an important factor in keeping employees happy and fulfilled in the workplace. A 2022 PwC Financial Wellness survey revealed that 38 percent of employees stressed about finances are looking for a new job. That percentage drops to 16 percent for employees who aren’t financially stressed.
Financial wellness benefits provided through Lifestyle Spending Accounts
When you offer financial wellness benefits through Lifestyle Spending Accounts, your employees might choose to spend the benefits on items such as:
- Financial planning/advising
- Financial coaching
- Workshops and courses
- Professional development
These benefits can be offered to supplement other financial-related benefits your company might offer, such as life insurance, employer-sponsored retirement plans, access to emergency funds, and more.
Why should you offer financial wellness benefits through Lifestyle Spending Accounts?
Between a global pandemic and economic uncertainty, life has placed significant challenges on Americans in the past several years. Now employees are looking for employers who care for their overall well-being through employee benefits. That could benefit your business long-term by maintaining a happy workforce and avoiding high employee turnover costs.
However, financial wellness benefits are not one-size-fits-all. Lifestyle Spending Accounts allow employees to spend money on their specific financial wellness needs. Young employees that are new to the workforce may be interested in financial coaching benefits to learn how to manage their budget, save money, and build credit. Other employees may seek financial planning assistance.
If an employee does not need financial wellness services, they won’t miss out. Instead, they will have the freedom to use the funds in Lifestyle Spending Accounts on other wellness benefits that will best serve their needs.
Lifestyle Spending Accounts
With Edenred’s Lifestyle Spending Accounts, your employees will be provided with a prepaid card as part of their benefits package, which they can be used to cover a variety of wellness benefits. In addition to financial wellness, spending categories include pet care, fitness, nutrition, education, and more.
Lifestyle Spending Accounts offer a model that benefits both staff and the employer. Your employees will enjoy the freedom to choose how they spend this benefit, customizing their spending to best serve their lifestyle. As the employer, you can determine the card’s spending controls, including the types of expenses covered and how often the card gets reloaded.
Are you looking for a financial wellness program for your employees? Schedule a meeting today. We’ll be happy to review all your options with you.