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Financial wellness is "effectively managing your economic life." This simple concept encompasses many factors, including:
- Keeping spending within one's means
- Being financially prepared for emergencies
- Having access to the information and tool necessary to make good financial decisions
- Having a plan
The underlying concept of financial wellness is financial security, one of the most common goals reported by employees across all sectors. What is missing is a more comprehensive approach to financial well-being, one that helps employees build lasting financial strength and stability, leading to a more solid organization.
For Employee
A high level of financial wellness gives employees the ability to make better, more informed decisions and manage a successful long-term strategy. When employees have a comprehensive understanding of their finances, they can create effective financial strategies. Then employees will be equipped with the skills, knowledge and tools necessary to develop and support successful financial outcomes.
For Employer
Employers feel the effects of their staff's financial health as well. Employees in stressful financial circumstances are less productive and less likely to remain at their jobs.
Financial wellness can help companies reduce unnecessary expenditures due to absenteeism, lost productivity, and benefit-cost overruns allowing businesses to expand their benefit options to include:
- Programs that enhance money management skills and help employees create and build assets
- Newsletters and other periodic publications
- Investment, retirement, college, emergency, and health care planning seminars
- Debt- and credit-related programs
The road to financial health is an ongoing journey. Once financial wellness is near, both employees and employers have a role to play in its continued progress.
Source: https://www.corporatewellnessmagazine.com/article/what-is-financial-wellness
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