Time to Talk: The Link Between Financial Strain and Mental Wellness
My Money Matters
The holistic financial wellbeing platform empowering employees to take control of their finances.
Time to Talk Day 2024 is a reminder of the transformative power of conversations. This year, as we engage in dialogue around mental health, it's crucial to shine a light on the often-overlooked connection between financial wellbeing and mental wellbeing.??
The stress of the future and whether we’ll have enough saved for it can be stressful and impact our overall wellbeing; and it’s only compounded by the ongoing cost-of-living crisis.
According to research from mental health charity Mind, the mental health of nearly half (48%) of people in England and Wales has been negatively affected by the cost-of-living crisis, rising to 73% for those with an existing mental health problem.??
The Weight of Financial Burden:?
Money matters, not just in our personal lives, but also in our professional ones. The stress of living paycheck to paycheck, grappling with debt, or the anxiety of not saving enough for the future can significantly hinder our ability to stay focused and perform at our best. Thinking of the week, month or year ahead can feel daunting; when immediate costs take priority it’s difficult to think towards the future.?
The impact of financial stress is carried into work by employees. Reduced productivity, lower job satisfaction, increased time off due to health issues or stress, and even decisions to leave roles altogether are all potential consequences. That’s why employers play a crucial role in creating an environment where employees feel comfortable discussing financial concerns.?
Empowering Employers to Make a Difference:?
Financial Education: Boosting employees' financial literacy is a proactive step employers can take. Offering webinars and workshops on budgeting, saving, investing, debt management, and retirement planning can equip employees with essential knowledge, fostering greater financial confidence.?
The Best Benefits: Expanding benefits packages allows employees to make choices that support their unique circumstances, potentially alleviating financial stress. Consider offering flexible compensation options, such as flexible work hours or remote work opportunities to help reduce fuel or childcare costs. Offer financial tools and resources like debt assistance or retirement planning support to help employees manage their money.?
Futureproofing: Help employees plan for the future by offering effective pension education and cost-effective retirement savings options. Encouraging the use of tools like salary sacrifice Additional Voluntary Contributions (AVCs) can provide a highly tax-efficient retirement savings route, giving employees peace of mind about their financial future and allowing them to maximise their existing income.?
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Communication: Keeping employees informed about their benefits and the available financial support through regular and varied communication channels is essential. Effective signposting ensures that employees are aware of their options and can make informed decisions relative to their own needs. Most of all, successful communication means that employees don’t miss out on the valuable benefits that they’re entitled to.?
Debt Management Assistance: Promote available resources and organisations offering guidance on managing and reducing debt. Charities like StepChange.org and TalkingMoney.org.uk provide free, accessible, and practical debt advice. It’s important to foster conversations around debt to raise awareness of such a common challenge and reassure employees they are not alone.?
Financial Wellness Apps and Tools: Offer access to financial wellness apps and online tools that empower employees to track expenses, set financial goals, and manage their finances efficiently. These tools, such as retirement calculators and debt management can make navigating financial challenges more manageable.?
As we recognise?Time to Talk Day 2024, let's remember that conversations about mental health must extend to discussions about financial wellbeing. Employers have a pivotal role to play in creating a supportive culture around money and helping to promote financial literacy in their organisations.??
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