Financial Finesse Estimates Stronger ROI for Workplace Financial Wellness Programs that Focus on Life Planning

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Mar 13, 2018, 08:22 ET

EL SEGUNDO, Calif., March 13, 2018 /PRNewswire/ -- The Financial Wellness Think Tank at Financial Finesse—the nation's leading provider of unbiased workplace financial wellness programs—released research today studying the relationship between an employees' financial wellbeing and how they manage key life events.

The report looked at the concept of life planning: the idea that the events which take place in our lives have certain financial implications that can be planned for, and even sequenced in some cases, for the best possible financial outcome. It focused on three key life events—owning a home, getting married, and having children—related to an employee's financial wellness, and how preparing for these life events (for those employees who choose to pursue any of these milestones) is a major driver in long-term financial security.

Key Findings from the report:

- Of the three life events studied, homeownership had by far the greatest positive relationship to financial wellness. Of those employees who own a home, 78 percent have a handle on cash flow vs. 63 percent of non-homeowners; 59 percent have an emergency fund vs. 34 percent of non-homeowners; and 64 percent are comfortable with their debt load vs. only 44 percent of non-homeowners.

- Marriage is financially beneficial, but the financial benefits are linked to housing and family stability. Recognizing marriage provides economies of scale with the sharing of expenses in dual-income houses, married homeowners have significantly lower levels of high or overwhelming financial stress than married non-homeowners. There is, however, no discernable difference in the financial wellness of married and single employees who do not own a home or have minor children.

- Having children, as expected, had a negative relationship to financial wellness, though somewhat mitigated by marriage and homeownership. Employees with minor children had lower levels of financial wellness regardless of homeownership or marital status.

Greg Ward, director of Financial Finesse's Financial Wellness Think Tank, says while the research does only analyze these three life events, how employees financially prepare for any major life goal or event can have a major influence on their overall financial wellness.

The Think Tank estimates the value of planning for these life events at over $150,000 for the average employee over the course of their lifetime. That equates to about $10,000 in additional annual income in their retirement years.

"This is more about making a mind shift in the way we, as a society, approach financial planning," he says. "It needs to start with providing people financial mentorship to help them reach their personal life milestones and build a solid financial foundation."

CEO and Founder of Financial Finesse, Liz Davidson, says that in her 19 years running an unbiased financial wellness company, she believes life planning is now one of the largest missing components in most workplace financial wellness programs. According to Davidson, employers who offer their employees life planning guidance see an increase in job satisfaction and productivity, and achieve a greater return on investment on their Financial Wellness benefit.

She adds: "Life planning is the bridge between the money they work so hard for and the things most important to them in life. Finances shouldn't be the single driver of a person's life decisions; we should make the life we want, but know how to achieve our goals with an understanding of the implications those goals have on our finances, rather than the other way around."

To join our webinar discussing this study and the future of workplace financial wellness on Thursday, 3/15, click: https://register.gotowebinar.com/register/8381449984404259075

About Financial Finesse
Financial Finesse is the largest independent provider of unbiased workplace financial wellness programs in the country, delivering holistic financial coaching and guidance that helps employees improve their financial wellness. The firm's programs cover every area of financial planning – from basic money management to advanced estate planning – and cost employees nothing out of pocket, since they are fully paid for by their employers. Financial Finesse's programs are proven to change lives, provided through a variety of channels such as mobile financial coaching, live events, interactive webcasts, one-on-one financial counseling sessions and a financial helpline staffed by CERTIFIED FINANCIAL PLANNER™ professionals who do not sell any financial products or manage assets. www.financialfinesse.com.

Contact: Danielle Encinas
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SOURCE Financial Finesse