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Personal Finance 101: The New Hip Employee Benefit

On Behalf of | Feb 28, 2018 | Business, Firm News

By: Laura Day DelCotto

This is one of the best ideas I have seen in quite some time, so I want to share.  Here’s hoping more employers will find their own creative ways to jump on the bandwagon, and more employees will brainstorm some similar concepts and ask for corporate support.

It is well known that money worries is the number 1 stressor for the vast majority of people. Employers wised up that personal financial stress was impacting employee workplace performance.   For instance, Pitt Ohio, a trucking company with 1800 drivers, obtained a research study proving that drivers who self-reported financial stress were more distracted, thus having more accidents and accident potential.  In response, Pitt set up a plan offering $56 to drivers who saved at least $19/week for six months straight, and who put it into an emergency fund without making any withdrawals.  A second 6 month/$56 could be earned.  Maybe that doesn’t sound like much, but that’s a relatively painless way to build a $550 emergency fund in 6 months.  It’s also fun to challenge yourself and to eke out the last little bit from The Man.  Over 90% of Pitt’s drivers participated and earned the benefit.

Aetna began matching up to $2,000 per year of student-loan repayments for full time employees who graduated after 2013, with a max of up to $10,000 per employee.  That makes a meaningful difference to student loan debt, and should elevate Aetna in job searches with prospective employees.  SunTrust Bank gives its full time employees $1,000 simply for completing a financial-education course, with the money available for debt reduction, funding of an emergency fund, or funding into a 401(k) or HSA.

Small and regular savings and debt repayment efforts lead to improved finances. Ergo, more freedom and peace of mind.  More peace of mind leads to more engaged, civic-minded, and calm community members, each of whom improve our society, day by day, person by person.  Thank you to corporate employers who help their workers grow financially strong.

(Source: WSJ, Workers Schooled in Money, 2/21/18)

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