According to a study conducted by Virginia Tech, the financial education programs taught by finedco get RESULTS! This study was conducted to obtain insights into participation in workplace financial education. participants were employees of a southeastern chemical manufacturer who has sponsored our financial education programs since 1993.

After attending the financial education programs, the participants reported the following behavior changes:

• 45% increased the contribution amount to the 401(k) plan; and
• 70% changed their investment strategy to become more diversified or more aggressive.
• 34% started contributing to the 401(k) plan

In comparison to the employees who did not attend a workshop, the participants reported greater than average financial wellness and better health; they were less likely to have experienced financially stressful events during the past year; to have reached the maximum limit on a credit card; to worry about the amount of money they owed; and less likely to worry about being able to pay monthly living expenses.

Participants reported making better financial decisions, starting or increased contributions to company benefit plans, and more financial confidence as a result of attending the programs.

Additionally, the study found a direct correlation between financial wellness and health wellness.

These results reinforce the need for - and the benefits of - employee financial education. In particular, this study shows the positive results of programs taught by finedco.

To request an executive summary of the study completed by Virginia Tech, please click here.

Employer Benefits

INCREASED PRODUCTIVITY
Recent research indicates approximately 15% of all workers in the U.S. are currently experiencing stress from poor financial behaviors to the extent that it negatively impacts their productivity on the job.  Teaching money management skills to employees can result in a reduction in the time spent worrying about finances in the workplace, which allows for a more focused, safe, and productive employee.

INCREASED COMPANY LOYALTY
In a time of high turnover and company downsizing, providing a financial education program that benefits each participant personally can send a message that your company cares about each employee's well being.  This can equate to increased company loyalty and improved employee retention.

INCREASED PARTICIPATION & UNDERSTANDING OF COMPANY BENEFITS
Our financial education programs have been proven to increase participation in company-sponsored benefits. By increasing participation levels, employers can benefit from FICA tax savings and the elimination of contribution limits for highly compensated employees.

INCREASED EMPLOYEE RETIREMENT READINESS
Helping your employees to be financially prepared for retirement helps both you and the employee. A financially secure employee is not likely to be financially dependent upon their employer once they do retire.   Additionally, should your company offer early retirement, then those employees who are financially secure will be more likely to accept the proposal.

ERISA 404(c) PROTECTION 
Legislation, such as ERISA 404(c), states that companies should teach their employees how to manage their retirement funds.  These programs may reduce potential liability arising from not providing ample financial education to employees.

IMPROVED HEALTH
According to the Virginia Tech study, there is a statistically significant relationship between financial and physical wellness. In this study, those who attended these workshops reported a higher self-perceived financial wellness score (fewer financial stresses, better health, etc.).  Better employee health can translate into lower healthcare costs to the employer, fewer absences, and more. 

The programs offered by finedco promote the value and necessity of participating in company benefits. To request an Executive Summary of the study completed by Virginia Tech, please click here.

Back to top

Employee Benefits

PLAN FOR LIFE
There are many life events that require planning - like getting married, having a baby, buying a car, or maybe even planning in case of an emergency. Everyone encounters at least one of these in a lifetime, yet few know how to financially plan for them.

The goal of our programs is to educate participants and provide them with the tools and knowledge to take control of their financial situation and plan for their future.

After completing the financial education workshops:

• 75% of participants said they felt they were making better financial decisions;
• 75% said they were more confident in making investment decisions; and
• 56% said their financial situation had improved because of the financial education.

REDUCED STRESS
An employee with less financial stress is a more productive employee, a safer employee and a more focused employee. Those with financial wellness come to work (are absent less), receive high performance ratings, use a minimum of time at work attending to personal financial matters, and enjoy consistent or increasing job productivity.

• 75% of participants said they were more confident in making investment decisions; and
• 56% said their financial situation had improved because of the financial education.

MAXIMIZE BENEFITS
Companies provide certain benefits as a part of the compensation package to employees. Making sure employees know and understand these benefits and how they can use them is equally important. After completing the workshops,:

• 34% of participants started contributing to the 401(k) plan;
• 45% increased the amount they were contributing to their 401(k);
• 70% said they changed their investment strategy by diversifying or being more aggressive in their investment choices. Participants increased their contributions in Balanced Funds and Equity Funds, which have a higher rate of return on investment, and decreased their contributions to Fixed Accounts, which usually have a lower rate of return.

IMPROVED HEALTH
According to the study, financial wellness was highly correlated to better physical health. Workshop participants reportedly experienced fewer financial stressors in the last year, reported better health, and had a higher self-perceived financial wellness score.
AND MORE!

Employees can realize many more benefits as a part of participating in employer-sponsored financial education workshops, including:

• Increased financial wellness
• Lower household debt-to-income ratio
• Increased self-esteem and improved attitude about work
• Increased satisfaction with employer-provided fringe benefits
• Increased capability to participate in and contribute to retirement plans
• Increased saving for retirement

The programs offered by finedco promote the value and necessity of participating in company benefits. To request an Executive Summary of the study completed by Virginia Tech, please click here.

Back to top