The term financial wellness has been showing up in conversations about employee acquisition and retention more in the last five years than any other time. But how important is it and what does it mean for employers?
Financial wellness, simply put, is the pleasure of having no financial stress in your life. It’s not a certain amount of money or a certain lifestyle, it’s about maintaining the balance between your income and the life you want to provide for yourself and your loved ones. This may seem like a simple concept, yet it’s much more complex than just spending less than you make.
Essential to financial wellness is the flexibility to adapt to any unexpected circumstance life might throw your way, such as a surprise medical bill or car repair expense. The Federal Reserve indicates nearly 40% of Americans struggle to cover an unforeseen $400 expense. With statistics like this, financial wellness becomes more than just a nice-to-have benefit, it’s a necessity that employees have right now that needs to be met.