Simplifying finances through employee benefits, such as HSA investments reduces administrative costs and financial complexity for both employers and employees.
Juggling complex financial situations can lead to stress, anxiety and confusion. But there are easy ways to simplify your finances to reduce the amount of time and mental energy spent managing your money, which in turn reduces stress levels.
In this article, we'll explore the meaning of financial literacy, discuss ways you can help your clients and employees simplify their finances and explain why simplicity is essential for achieving financial stability and success.
What is financial literacy?
Did you know, according to a 2022 American Psychological Association (APA) study, personal finances rank the highest among sources of anxiety for adults in the U.S.?
While it may not be possible to completely eliminate all financial stress, it is possible to expand your education and develop a deeper understanding of financial literacy.
Financial literacy is the "ability to understand and make use of a variety of financial skills " according to Investopedia. This involves making informed and effective decisions with money and is a skill that can benefit everyone regardless of age, income or background.
Financial literacy encompasses a broad range of financial topics, including budgeting, saving, investing, debt management and financial planning.
But often, a key component to healthy financial literacy is simplicity. Simplifying finances can help ensure your clients and employees have what they need when they need it without any frustration.
Here are three tips to help simplify your finances:
1. Establish a Realistic Budget (and stick to it!)
Financially literate individuals create budgets that accurately reflect their income and expenses. They prioritize tracking expenses and make necessary adjustments to live within their means. Consider offering your employees access to user-friendly budgeting tools that can help them walk through the process.
2. Consolidate Bank Accounts
Managing multiple accounts in different places can be frustrating. Encourage employees to consolidate bank accounts into one or two to simplify tracking transactions and reduce the likelihood of errors.
3. Utilize Employee Benefits for Savings and Investing
Employees often underutilize their benefits package. Offering features like Health Savings Accounts (HSAs) with high-yield savings options and investment opportunities can help employees save for health care expenses while building a nest egg.
Simplifying finances through employee benefits, such as HSA investments reduces administrative costs and financial complexity for both employers and employees. It also improves employee morale, job satisfaction, retention, and overall financial well-being.
How Simplicity builds financial confidence
At Clarity Benefit Solutions, simplicity in finances is something we are always passionate about. It's the driving force behind our innovative benefit solutions and the reason we strive to provide you with best-in-class service that limits the frustration that comes along with the benefits process.
That's why we're celebrating National Simplicity Day on July 12, 2023. Visit nationalsimplicityday.com for more details and a countdown leading up to the big day.
Want to transform your employee benefits package with enhanced HSA features? Contact us to learn more about how you can be a simplicity champion.
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
