We are currently experiencing a period that has tested our economic system. Inflation, economic instability, and a lack of savings have caused an increasing number of Americans to feel financially stressed.1 Additionally, total household debt rose by $148 billion to $17.05 trillion in the first quarter of 2023.2
It is important to recognize that financial stress among your employees can have a significant impact on their productivity and engagement which can result in a loss of profit for your company.3 One solution that many companies provide to their employees is the expansion of benefits that may include financial wellness programs, like Kashable, which offer low-cost loans, credit monitoring, savings accounts, and live financial coaching. These benefits can better help employees manage economic stress and prepare for their financial future.
Kashable’s financial wellness program seamlessly integrates into employers’ benefits options and is easily accessible, and provides reassurance to your employees that their well-being is a top priority. Offering these benefits to employees can expand their access to financial planning tools, which are particularly vital during times of economic uncertainty.
A Closer Look at Financial Planning
For employees navigating through stressful times, financial planning can serve as a useful tool in evaluating their present financial situation, establishing achievable goals for both the short and long term, and devising strategies to attain them. This process may include taking steps to budget, save, invest, and manage risks. Financial planning can be proactive in empowering individuals to make informed financial decisions and may offer a wide range of advantages, including:
- Safeguarding against the unexpected: Financial instability often presents unforeseen challenges, such as job losses, market volatility, or sudden emergencies. A well-crafted financial plan can allow employees to build an emergency fund and mitigate risks, providing a financial cushion to navigate through such adversities.
- Maintaining financial discipline: Uncertain times can trigger impulsive decisions driven by fear or panic. Financial planning can foster discipline by establishing clear financial objectives and devising a path to achieve them. It may also allow employees to remain focused, make informed choices, and resist the temptation of succumbing to short-term market fluctuations or unexpected expenses.
- Maximizing opportunities: A financial plan can equip employees with the ability to identify potential areas for growth and strategically allocate their resources.
- Achieving peace of mind: A comprehensive financial plan not only can address immediate financial goals but also can work to encompass long-term objectives, such as retirement planning and wealth preservation. By having a clear plan in place, employees can experience peace of mind, help to reduce stress levels and enhance engagement and productivity at work.
During periods of economic uncertainty, providing your employees with access to financial coaching and literacy resources through Kashable can offer them a source of stability, security, and guidance amidst turbulent times. It can also help employees make informed decisions, navigate unexpected challenges, and seize potential opportunities. With the user-friendly resources and tools offered by Kashable, you can support your employees in embarking on their financial planning journeys.
Whether we face an economic downturn or engage in future planning, investing in your employees’ financial planning allows them to prioritize and achieve their financial aspirations. There is no better time than now to discover why Kashable is the benefit that benefits everyone.
[1] https://www.cnbc.com/2023/04/11/70percent-of-americans-feel-financially-stressed-new-cnbc-survey-finds.html
[2] https://www.newyorkfed.org/microeconomics/hhdc
[3] https://www.mercer.com/content/dam/mercer/attachments/global/inside-employees-minds/glb-2017-inside-employees-minds-volume-2.pdf