MoneyWisdom Blog

4 Steps to CALM Financial Stress

Posted by Hanscom Federal Credit Union on Aug 10, 2016 7:00:00 AM

Stressed_Employee-Most American workers experience financial stress. That’s according to the annual Financial Stress Research a study from Financial Finesse. In fact, 85% of people reported at least some level of financial stress.

“I’m not surprised, given how complex money management can be,” said Maria Porto, Hanscom FCU’s AVP of Partner Relations. “At the financial seminars we present at companies, we get questions and hear stories on a daily basis.”

The researchers delved into what level of stress we are under, revealing that about 60% of us have manageable stress, while 25% are overwhelmed by their financial situation. As you might guess, there is a link between money management practices and stress levels.

Manageable vs. Unmanageable Stress*  
  People whose Financial Stress is Manageable People whose Financial Stress is Unmanageable
Have a handle on cashflow 80% 36%
Have an emergency fund 59% 16%
Pay their bills on time 95% 67%
Financial Finesse, Inc. ©2016

 

Researchers found that those with manageable financial stress exercised good money management practices. Those with unmanageable stress were more likely to live paycheck to paycheck, spend more than they earned, have large debt, and lack an emergency fund.

“That’s what drives us to keep teaching money management,” Maria explained. “When we go into a company, it’s not about how large the salaries are. It’s about the employees’ financial savvy. If we can help people create a spending plan, manage debt, and commit to savings, it makes a difference in their work and personal lives.”

Here’s the 30,000 foot view of what we teach. Financial Finesse calls it the C.A.L.M. stress reduction model:

  1. Create a plan to manage cash flow, working with a coach if necessary
  2. Automate bill payment and saving for emergencies
  3. Lower nonessential spending and debt
  4. Make progress one step at a time

Our Lunch and Learn seminars cover these topics and more,” Porto explained. “It’s a low-pressure way to remind employees that they can influence their own financial health by taking specific actions.”

Lots of employers recognize the effect of financial literacy on their bottom line. According to a report by human resources consultant Aon Hewitt, 89% of employers are very or moderately likely to implement or expand programs to help employees better manage their money as part of their overall benefits package.

There’s one more thing you should know. Our Lunch and Learn seminars are free to employers and attendees. We even bring lunch. To see where we will be and what we’re talking about, check out our list of upcoming programs at www.hfcu.org/events.

To download a copy of the Financial Finesse report, go to https://ffinesse.app.box.com/v/FinStressResearchReport

Sign up for a free Lunch and Learn seminar

Topics: Personal Finance

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