Financial wellness is a necessity for employers to offer: Here’s why

When 40 percent can’t cover a $400 emergency and nearly 80 percent live paycheck to paycheck no matter their pay grade, the need for a financial wellness solution is clear. (Photo: Shutterstock)

Financial wellness allows people to enjoy life, achieve their goals, and spend money in ways that benefit their future. It’s about making decisions that help individuals take control of their bank account, and ultimately achieve their goals such as being debt free or building their retirement savings to a comfortable level. The path to financial well-being is unique to each person as many people experience different challenges throughout the process.

Financial planning looks at the entire picture – current pay, outstanding debt, loans and income potential and of course liquidity requirements – to determine strategies for the future that will help employees meet their short- and long-term goals. Short-term goals can include plans to reduce expenses, save money for a down payment on a home, or to establish an emergency fund, but the first step is to examine the current state of funds and what’s coming in and what’s going out.