For all the talk about holistic practices, the concept remains subjective in the eyes of some beholders. It’s also worth noting that due to encompassing nature of executing holistic advisory and planning services, it’s a dynamic ideal, meaning new concepts are continually added to the old staples such as estate and tax planning.
Add financial wellness to the relatively new list. New or not, financial wellness is a valid concept and one advisors do some homework because it’s a value-add on the client facing front. After all, financial problems can and do take a toll on personal relationships. Not only that, there’s also the specter of these issues leading to physical and mental health problems. Stress of all forms can have those dire consequences, so it’s not surprising the same is true of financial stress.
For advisors that need more convincing regarding even incremental offerings centered around financial wellness, consider that this is something some smart employers are already providing to staff. There’s benefit in it for both employer and employee.
“Employees who accessed financial wellness resources reported lower levels of severe stress and were more likely to feel on track toward their financial goals,” notes CAPTRUST Financial Advisors (CAPTRUST). “Despite this, more than half of those who engaged said they remain off track, highlighting the need for more personalized and comprehensive financial well-being support. 40 percent of employees ranked one-on-one advice as the most helpful resource for decreasing their financial worries.”
More Reasons to Add Wellness to the Agenda
Expanded financial wellness offerings and conversations can help advisors better serve specific client demographics – a compelling reason to go down this road.
“Stress about money can manifest in unhealthy coping mechanisms that may have negative health consequences of their own. Women who experience financial stress are more likely to engage in sedentary or unhealthy behaviors to manage stress — which include watching TV or surfing the internet, eating, drinking alcohol or smoking — than their low-stress counterparts,” reports KCET.
Captrust’s Financial Wellness Survey Report: Silent Financial Stress in the Workplace highlights other reasons why advisors should emphasize financial wellness, including the intersection of financial stress and lack of related education.
“Employees may avoid confronting their most pressing concerns because addressing these worries is simply too overwhelming,” according to the firm. “For example, respondents named emergency savings and managing debt as their top financial worries yet identified investing and estate planning as their highest learning interests.”
Messages from the Workplace
Advisors aren’t clients’ workplace superiors or human resources personnel, but there are lessons to be learned from how financial stress plays out on the job, confirming that there is value in prioritizing financial wellness.
“Financial stress is not just a personal issue, it quickly evolves into a workforce challenge that can impact an organization's bottom line if not addressed," said Christopher Whitlow, CAPTRUST Senior Director and Head of CAPTRUST at Work. "Our survey supports the premise that when employees struggle financially, their ability to focus and perform at work suffers. Employers who invest in comprehensive financial wellness programs can help build financial confidence, improve retention, and empower a more resilient and motivated workforce."
Bottom line: Not all employers provide financial wellness services to employees. Some simply don’t care. Advisors shouldn’t make those mistakes.
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