How Northstar is promoting financial wellness by making financial guidance a universal benefit

By Rachel Zabronsky , James Loftus and Danielle Stone

?In today’s volatile market, many people are struggling financially. A staggering 36% of U.S. employees who earn more than $100k annually are now living paycheck to paycheck (Source: Willis Towers Watson ). The macroeconomic environment, with inflation rates ranging from 8% to 55% in the first quarter of 2022 alone, continues to have a direct effect on people’s emotions, decisions, and sense of stability (Source: Pew Research Center ). Most don’t know where to turn for unbiased, expert financial advice – when it comes to big financial and life decisions, your family’s dinner table musings don’t seem to cut it and getting a personal private wealth manager can be cost prohibitive. We believe that everyone deserves the opportunity to build financial stability and should have access to the tools and guidance to get there. That’s why we’re thrilled to share PayPal Ventures’ most recent investment in Northstar, a financial wellness company dedicated to helping employees achieve their financial goals and make the most of their employer benefits. Northstar is democratizing access to financial wellbeing through a combination of self-service tools and full-time, in-house financial advisors.

?Companies of all sizes have more complex and more robust compensation packages than ever before – from traditional financial benefits and equity structures to fertility, childcare and mental health benefits. In fact, 68% of employees think equity plans are highly complex and want to work with a financial advisor (Source: UBS ). With Northstar, each employee is matched with a full-time Certified Financial Planner (CFP?) who is specifically trained on their unique benefits and compensation plan to provide 1:1 counsel that will help them better understand their holistic financial picture and ultimately reach their goals. Employees also have access to self-service tools and financial automation that helps them form better money habits.

Northstar acts as an HR partner to employers, helping companies support their teams through onboarding new hires, open enrollment, equity events, enabling confident decision-making with health plan cost comparison, and so much more. 60% of voluntary turnover at companies is due to employees believing that they have low pay or poor benefits (Source: Pew Research Center ). Having unfettered access to professionals who can eliminate the confusion and shed light on which benefits are available is crucial. Top companies turn to Northstar to help their employees build financial health – including Snap, Zoom, 23andMe, Virgin Orbit, and NerdWallet.

Northstar is led by CEO Will Peng, a first-generation immigrant from Taiwan who graduated from Princeton with $35k in debt, $0 in savings, and no resources to turn to for advice. He knows firsthand how important it is to understand your personal financial situation and the life-changing impact of having a specialist to help you understand how to maximize your potential.

Northstar is the definitive employee financial advice platform, across all career stages, and we couldn’t be more excited to support their growth. Welcome to the PayPal Ventures portfolio, Northstar!

If you’re interested in exploring careers at Northstar: https://boards.greenhouse.io/northstar ?

If you’re interested in working with Northstar to help your employees better utilize their total compensation and make financial decisions: https://www.northstarmoney.com/meeting