Danielle Kamp May 14, 2021 7 min read

How Financial Literacy Can Improve Employee Mental Health

Explore the importance of financial literacy for employees

Many of us have experienced times of financial hardship in our lives, especially over this past year of the pandemic. Unfortunately, people are not always educated on the most effective and safest ways to maneuver financial difficulties. Lack of financial knowledge during challenging times often leads to people feeling overwhelmed, inadequate, stressed, and anxious about the future.

According to the National Alliance on Mental Illness (NAMI), 1 in 5 adults in the United States experiences mental illness in a given year. It’s no surprise finances can be a major factor in an individual’s mental health and can greatly impact their daily lives, especially if they are unprepared on how to handle a financial crisis.

This reason is why financial literacy – the ability to understand and effectively use various financial skills – is incredibly important to instill in your employees. Help your employees during challenging times by providing them with the educational tools and finance-related benefits they need for their financial well-being.

Offering a wide variety of finance-related benefits to employees has never been easier thanks to our Benefitexpress Marketplace. Our marketplace offers a wide assortment of lifestyle benefits and discounts designed to relieve the pressures of financial hardship and provide your employees more choice and flexibility to meet their needs.

Peace of mind through payroll purchasing

One of the options available to employees through the Benefitexpress Marketplace is our payroll purchasing program, which offers employees a more financially savvy way to buy brand new products.

Struggling to buy items during difficult financial times can take a major toll on an employee’s mental health and be a constant distraction. In fact, 43% of employees who are distracted by their finances spend three hours or more thinking about or dealing with issues related to their personal finances at work.

Participating in our payroll purchasing program gives employees the opportunity to buy from a wide range of products like TVs, computers, furniture, and appliances without worrying about credit checks, down payments, or hidden fees, with repayment through paycheck deductions. Employees can receive peace of mind knowing they can purchase high ticket items and spread the cost across six to twelve months via payroll, instead of creating credit card debt and further financial stress.

Tackle debt and unexpected expenses through personal loans

The Benefitexpress Marketplace also offers socially responsible, low-cost personal loan programs to help relieve financial challenges for employees. Employees can take advantage of these loans through our partner Kashable, a financial wellness benefit that provides employees with a better way to tackle costly debt and unexpected expenses.

Facing financial emergencies is mentally demanding for employees, especially when they feel they’ve run out of financial help options. Our online, low interest installment loans help employees when they need it most, whether it’s for medical expenses, paying down other expensive debt, or car or home repairs. Kashable only lends what employees can afford to borrow with loans that are repaid automatically through payroll deductions.

This voluntary benefit is an easier way to tackle costly debt and unexpected expenses, often a better alternative than borrowing from retirement accounts, credit card cash advances, payday lending, and high interest rate loans.

Refinance and consolidate with student loan refinancing

Additionally, the Benefitexpress Marketplace offers student loan refinancing. Employees can lower repayments and shorten repayment time, reducing the loans’ overall cost. Our partner Gradfin refinances and consolidates employees’ student loans through their lending platform.

A staggering 43 million people currently have student loans totaling $1.3 trillion and more than 90% of millennials don’t know their student loan interest rate. Trying to pay off student loans can feel incredibly overwhelming and anxiety-inducing for individuals, especially millennials who are newer to the workforce.

With student loan refinancing, Gradfin refinances and consolidates employees’ student loans through their lending platform, which is comprised of eleven lenders to maximize approval rate and minimize interest rates. Loan repayment is made through payroll. Gradfin also offers personal consultations, live webinars, and town-hall meetings to educate employees and provide options for reducing their student debt.

Financial literacy and mental health go hand-in-hand

Difficult financial times are always challenging, but your employees don’t have to be left in the dark without any support, especially if their mental health is suffering. Make mental health a priority at work and show your employees how much you appreciate and support them by providing finance-related benefits and financial literacy education to help them face financial challenges head-on.

Are you ready to help your employees through financial challenges and improve their financial literacy and mental health? Download our product sheet today!