Spring is a great time to focus on how to get even more mileage out of your workplace financial wellness solutions. And especially amid inflation and a tightening labor market, our research shows that almost 69% employees are paying greater attention to their financial benefits this year (vs. 60% in 2022 who were paying the same amount of attention to their benefits, not more) and turning to their employers for help.
One way to add greater value for your current employees is by extending financial wellness to their whole families. Beyond providing resources for employees to improve their own individual finances, employers can set themselves apart by offering ways to bring better practices, education, and choices to their loved ones as well. Here are three ways you can think about extending your benefits program to make a difference for the whole family.
- Break the ice
Money is one of the trickiest topics to discuss in our personal lives, which means there's an opportunity for workplace benefits to help employees start the dialogue. The Morgan Stanley Wealth Management financial advisers with whom we work often strongly recommend regular family conversations to help growing children and adults alike form an identity and shared understanding around money, but many may not know where or how to begin.
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Workplace financial benefits can help guide the conversation for employees and their families. Just as wise money management is about connecting all the different pieces of a person's financial picture — from budgeting, to debt management, to savings and investing — it can be just as important to reframe financial wellness within the context of family life. Money is a tool for families to use as they navigate their goals, but talking about money can feel very taboo for many of us.
Use your benefits communication campaigns to introduce the concept that building wealth is about much more than just money. Don't be shy about letting employees know your benefits programs can help them connect present needs to future goals, including with their loved ones. Present yourself as a resource for employees as they navigate financial needs with their families — they may not even realize there are opportunities for them to take their workplace benefits home.
- Make it elementary, dear Watson
Children tend to watch and learn from the adults in their lives, including about how to behave with and handle money. So, it's never too early to take a more intentional approach to helping them learn financial fundamentals. In fact, our research with Edelman Trust's survey of Diverse High Earners shows a surprising consensus of opinion from across various socioeconomic and ethnic backgrounds that it's important to begin learning about investing in the stock market, working with financial advisors, and investing for retirement — as a child.
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Elementary school doesn't usually cover these topics, but your workplace benefits can help fill in the gaps. Connect with your benefits providers to tap into and deliver education modules or special events that help employees explore essential financial education topics. You can also offer courses to help guide parents in guiding discussion with their kids. Start slow, gradually introducing ways that parents can offer their kids some control over their own finances by the time they reach their teens. Look into offering education sessions or events that employees can invite their children and families to join them in, such as:
- Is it important to talk about money as a family?
- Should children give to charity?
- What's the difference between saving and investing?
- When is it OK to borrow money?
- How to open and manage your first savings or checking account
- How to build a credit history
- Planning a big purchase
- What does it mean to invest for the future
- Setting long-term goals
- At what age do you hope to retire
- Planning to pay for education
- Planning your legacy
- What is a special needs trust
Your benefits education can help spark conversations at home and build greater financial literacy across generations, helping your employees and their families take empowering steps to forming a healthier relationship with wealth.
- Keep the Golden Years golden
Of course, children are not the only ones who need support, education, and resources in navigating their financial lives. Many of your employees may be in the "sandwich generation," caring for both children and aging parents. Some may be approaching retirement themselves, or grappling with health conditions or other needs that have them looking differently at their budgets and future legacies. Some may be caring for family members or children with special needs.
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How do you help employees balance all that? Whatever the circumstances your employees find themselves in, it's important to help them learn to identify and prioritize their own financial wellbeing. Your workplace benefits can provide tools and guidance to help them make conscious decisions and build a deliberate culture of financial wellness at home.
Of course, proper planning is also essential. Along with offering education modules to help employees learn ways to foster open communication with their families, it can help to offer access to individual financial coaching or financial advisors who can help answer more nuanced questions. A good financial adviser can be sensitive to each family's unique situation and provide services with caring and appropriate support.
