Managing money is a challenge for just about everyone, including your employees. If they have their finances under control, they’ll have more peace of mind, which should help them be more engaged and productive. You aren’t responsible for managing how your employees budget their money, and you should be careful about offering financial advice. But you can provide resources that can guide them toward sound decisions—resources that may already be included in your employee assistance program (EAP).
Five ways to help your employees budget their money
- Ask the experts. A financial planner can help your employees understand their fiscal options and establish a foundation for success. No matter what their goals may be—buying a house, saving for retirement, or establishing a college fund—a financial expert can help them customize a plan.
- Save for retirement. If your company offers a 401(k) retirement plan, promote it to your employees and encourage them to take advantage of it. If your company will match a percentage of employees’ contributions (as many employer 401(k) plans do), urge your employees to contribute at least the necessary amount so they don’t pass up free retirement funds. Your company could even consider making 401(k) enrollment automatic so employees would have to opt out of your savings plan.
- Set a household budget. Every employee’s financial situation is different, but all employees can benefit from having a monthly budget and learning exactly where their money goes. Plugging spending leaks could make a big difference at the end of the month. Look to offer budgeting tools and information that can help your employees track their spending.
- Debt counseling. Employees who may be struggling because of too many financial obligations could benefit from talking to a debt counselor. The counselor can provide referrals to and information about credit counseling services to help your employees get their debt under control. Financial problems can lead to serious stress and anxiety. A best-in-class EAP can direct your employees to resources that can help them cope.
- Improve financial literacy. Helping your employees educate themselves about financial matters can lead to lifelong benefits. Buying a house, choosing the right life insurance, comparing credit card offers—making these decisions with a firm grasp of financial fundamentals can save your employees money and ensure they’re adequately prepared for the future.
Make sure your employees know that it’s wise to get financial help when it’s needed. With Life Solutions—WorkPartners’ EAP—your employees can access tools and resources that can help them better manage their money, improve their financial outlook, and find their fiscal footing. To learn more about how you can help your employees, visit our website or contact us today.