Nowadays, financial wellness is difficult to handle. Cash reserve is not enough to sustain the needs of households. The income sources of many are limited.

With all the financial challenges, it is important to know how financial wellness influences the well-being of the employees. But before that, let us first know what is financial wellness. It pertains to how people manage their finances. It includes how they save, invest, and spend for their needs.

The effects of COVID-19 made economies suffer especially on its first wave since everyone is not familiar with how the virus behaves. As a result, most countries lock their borders to prevent the spread of the said disease.

As the economy suffers, the way people handle their finances has changed as well. Moreover, studies showed that financial stress affects one’s productivity.

“Even when they’re at work, financial stress in their personal lives distracts them from their tasks,” Entrepreneur stated.

“Financially stressed employees lose three hours each week dealing with their money problems — a 7.5% decrease in productivity per employee,” it added.

Apart from productivity, financial wellness can affect health. If a person struggles to sleep because of financial debt, his physical and mental health can suffer immensely.

“According to a new survey by Bankrate, money worries are the biggest cause of sleep loss and it’s getting worse. Seventy-eight percent of U.S. adults are losing sleep worrying about everyday expenses, saving for retirement and healthcare costs,” the Best Money Moves reported.

Interestingly, if job seekers or employees discover that a company offers a program that enhances the financial wellness of an individual, employee engagement, job recruitment, and even employee retention increases.

Further, most employees told Bank of America that they would like to attain the following to increase their financial wellness:

  • Advice from a professional, such as a financial advisor, planner, or accountant 
  • Online financial tools or calculators
  • Developing financial skills and good financial habits

Today’s recession is an eye-opener for all that financial literacy should not be taken for granted. This is the key to make one’s business survive if the recession will happen again.

Featured Image: https://www.everydayhealth.com/wellness/united-states-of-stress/what-financial-wellness/