Money, Stress, and the Workplace: The Case for Financial Literacy at Work

April marks both Financial Literacy Month and Stress Awareness Month -- a timely opportunity to reflect on how money and mental health intersect in the workplace. When employees lack the knowledge or tools to manage their finances, the impact goes far beyond personal budgets. Financial stress can undermine mental well-being, reduce workplace productivity, and affect overall employee satisfaction.

The challenge? Most people were never taught how to manage money. In fact, 80% of U.S. adults report never receiving financial education in school, leaving many employees to learn about budgeting, saving, or investing through trial and error. In many households and communities, money remains a taboo subject. Without a trusted guide or supportive employer, financial literacy is often out of reach. This knowledge gap contributes directly to the stress that shows up at work.

The Impact of Financial Stress on Employees

Money-related stress is one of the top concerns for today's workforce. Almost half of workers say they're overwhelmed by financial stress, which contributes to anxiety, depression, and trouble sleeping. In the workplace, this chronic stress can lead to burnout, absenteeism, and disengagement.

When employees are worried about making ends meet or managing debt, they're less focused, less productive, and less likely to stay long-term. Financial stress isn't just a personal issue -- it's a business issue too.

Why Financial Literacy Matters

Financial literacy is a foundational life skill -- but it's rarely treated that way. Without access to basic financial education, employees may struggle to:

• Create and follow a budget
• Manage debt or improve credit
• Understand retirement plans or health savings accounts
• Prepare for emergencies or invest for the future

These knowledge gaps can lead to poor financial decision-making, which in turn amplifies stress and limits long-term security. Financial literacy equips employees to feel confident, in control, and better prepared to face life's financial challenges.

Fro those from marginalized communities or lower-income backgrounds, the stakes are even higher. Without inherited knowledge or equitable access to resources, the financial literacy gap becomes a major barrier to stability and advancement.

The Business Case for Financial Education

Helping employees improve their financial literacy isn't just good for them -- it's good for business. When employees feel financially secure, the benefits are clear:

• Higher Retention Rates: Employees who feel financially secure are more likely to stay with their employer, reducing turnover costs.
• Increased Workplace Productivity: Employees who are not distracted by financial stress are more focused and engaged in their work.
• Stronger Employee Benefits Utilization: When employees understand their financial benefits, they are more likely to take full advantage of retirement plans, insurance options, and wellness programs, maximizing the company's investment in benefits.

How Employers Can Bridge the Gap

Financial wellness should be an integral part of any workplace well-being strategy. Here are five ways employers can support financial literacy and reduce stress:

1. Make Financial Education Accessible

• Offer workshops, webinars, or self-paced resources on topics like budgeting, saving, investing, and retirement planning.
• Use digital platforms or AI-driven tools to provide personalized financial guidance.

2. Normalize Financial Conversations

• Break the taboo around money by encouraging open, judgement-free discussions.
• Train managers and leaders to promote available financial wellness resources.

3. Provide Personalized Financial Support

• Partner with Certified Financial Planners (CFPs) or financial coaches to offer one-on-one sessions.
• Tailor education and tools to different life stages, from early career to retirement planning.

4. Tie Financial Wellness Into Broader Well-Being Programs

• Recognize the link between financial, mental, and physical health.
• Offer holistic benefits like emergency savings programs, flexible work arrangements, or mental health days.

5. Incentivize Participation and Progress

• Encourage engagement through savings challenges, milestone recognition, or contribution-matching programs.
• Celebrate employee wins, such as paying off debt or building emergency savings.

Conclusion

Financial literacy isn't just a nice-to-have skill -- it's essential to employee well-being. As financial stress continues to impact mental health, job performance, and employee retention, the need for workplace-driven financial education has never been clearer.

By equipping employees with the tools, knowledge, and support to navigate their finances, employers can create a culture of confidence and security. In doing so, they're not just improving individual lives -- they're building a more focused, engaged, and loyal workforce for the future.