According to the National Alliance on Mental Illness (NAMI), 1 in 5 adults in the United States experiences mental illness in a given year. It’s no surprise finances can be a major factor in an individual’s mental health and can greatly impact their daily lives, especially if they are unprepared on how to handle a financial crisis. Lack of financial knowledge during challenging times can lead to people feeling overwhelmed, inadequate, stressed, and anxious about the future.
This reason is why financial literacy – the ability to understand and effectively use various financial skills – is incredibly important to instill in your employees. Help your employees during challenging times by providing them with the educational tools and finance-related benefits they need for their financial well-being. How can employers help?
Peace of mind through payroll purchasing
Struggling to buy items during difficult financial times can take a major toll on an employee’s mental health and be a constant distraction. In fact, 43% of employees who are distracted by their finances spend three hours or more thinking about or dealing with issues related to their personal finances at work.
Participating in a payroll purchasing program can give employees the opportunity to buy from a wide range of products such as TVs, computers, furniture, and appliances without worrying about credit checks, down payments, or hidden fees, with repayment through paycheck deductions. Employees can receive peace of mind knowing they can purchase high ticket items and spread the cost across six to 12 months via payroll, instead of creating credit card debt and further financial stress.
Tackle debt and unexpected expenses through personal loans
Facing financial emergencies is mentally demanding for employees, especially when they feel they’ve run out of financial help options. Low interest installment loans help employees when they need it most, whether it’s for medical expenses, paying down other expensive debt, or car or home repairs.
Providing personal loans as a voluntary benefit is an easy way to help employees tackle costly debt and unexpected expenses, often a better alternative than borrowing from retirement accounts, credit card cash advances, payday lending, and high interest rate loans.
Refinance and consolidate with student loan refinancing
A staggering 45 million people currently have student loans totaling $1.7 trillion, and more than 90% of millennials don’t know their student loan interest rate. Trying to pay off student loans can feel incredibly overwhelming and anxiety-inducing for individuals, especially millennials who are newer to the workforce.
With a benefits administrator who offers student loan refinancing, employees’ student loans can be consolidated through their lending platform. Loan repayment is made through payroll.
Check out this video to learn more about our student loan repayment solution:
Financial literacy and mental health go hand-in-hand
Difficult financial times are always challenging, but your employees don’t have to be left in the dark without any support, especially if their mental health is suffering. Make mental health a priority at work and show your employees how much you appreciate and support them by providing finance-related benefits and financial literacy education to help them face financial challenges head-on.
Our colleagues at benefitexpress, a WEX Company offer Benefitexpress Marketplace, which gives employees access to a variety of lifestyle benefits, including financial wellness solutions. These solutions include payroll purchasing, low-cost personal loans, and student loan refinancing.
Would you like to learn more about how to better support employee financial, mental, and physical wellness? Check out our free guide!
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The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.