How to Improve Employees’ Financial Literacy With Total Financial Wellness

April is National Financial Literacy Month, a time dedicated to promoting financial literacy and well-being. Many of us aren't provided with the right resources to make smart financial decisions or to plan, budget and invest for the future. Only 17% of students nationwide have access to financial education in primary or secondary school. This number is significantly smaller (3.9%) at low-income schools. This lack of financial education early on often carries throughout life. According to BrightPlan’s 2021 Wellness Barometer Survey, only 20% of U.S. employees have basic financial literacy. 

With financial stress mounting, many employees are looking to their employers for financial guidance. Over 80% want financial education, tools for investing, and access to a financial professional. HR leaders can address this growing need by including financial wellness benefits as part of their total rewards portfolio. Providing your employees with a comprehensive financial wellness program can help fast-track their financial literacy, guide them to financial stability, and demonstrate that you care about their overall well-being.

How To Introduce A Total Financial Wellness Program:

1. Survey Your Employees

Before rolling out any new benefit, it’s important to base the program on your employees’ specific needs and challenges. Ask them for their feedback on the types of financial tools and resources that they would find most valuable. Consider assessing your employees’ financial literacy to establish a baseline and help determine the types of financial resources that will be most beneficial to your workforce. This will give you a clearer idea of what you should prioritize and how you should roll it out. 

2. Use Different Channels To Inform And Deliver

Since employees are constantly bombarded with communications, it’s important to develop a strategic rollout and communications strategy that caters to the different ways in which employees prefer to absorb information. A mix of channels, such as video, chat, direct mail, and text can increase the likelihood of your message getting through and employees enrolling in the program. 

3. Leverage Existing Employee Benefits

Your organization most likely already offers some form of financial benefits like a 401(k) plan, health savings accounts (HSAs), student loan assistance, or debt consolidation. You don’t need to replace these when you implement a total financial wellness program. Since your employees may already be taking advantage of these resources, explain how your financial wellness program can help employees optimize the benefits that are already available to them by providing a single and holistic view of their personal finances as well as company-provided financial benefits.  

4. Partner With A Trustworthy Provider

A third-party financial wellness provider should educate and coach your employees based on their unique needs and help drive success of the program. Look for a partner to serve as an extension of your HR team, one that will guide you through the launch and beyond. Here are a few key questions to ask when evaluating solutions from a financial wellness company:

• Digital + Human: Does the solution include a digital app that enables self-service paired with experienced financial planners to accommodate a range of employee preferences?
• Learn: Does the solution include educational content and sessions on relevant financial topics customized for your company?
• Plan: Does it guide employees step-by-step through setting and planning for their financial goals? 
• Invest: Does the solution include investment advice―including for their 401(k)?
• Manage: Does the solution allow each person to see where they stand financially and analyze day-to-day spending?
• Fiduciary: Does the financial wellness company adhere to the fiduciary standard? If yes, are they certified by a third party to ensure adherence to that standard?
• Customer Success: Can the financial wellness company partner with your HR team to proactively improve employee adoption and engagement?

HR leaders can help narrow the financial literacy gap by offering comprehensive financial wellness benefits that educate and guide employees to achieve their life goals with confidence.