Employers should offer financial wellness training for young workers. Young workers are also experiencing financial uncertainty. According to Prudential Financial, Inc.’s Pulse research survey, titled "Generational Gap Growths: Work & Money Outlook Splitted", younger generations face acute challenges and anxiety about managing their money. They struggle to balance 'living in this moment' with long-term savings. Nearly half the adult respondents reported having less than $500 in emergency savings, while 39% of Millennials or Gen Z said they have no emergency savings.
Young people are being forced to be more proactive in securing their financial future. Employers can help. Employers have a lot to gain by equipping their younger employees with financial knowledge. Younger employees will be more productive and loyal if they are able to manage their finances. Prudential's survey revealed that many young Americans are living beyond their means. In order to survive, more and more workers, especially younger ones, are forced to work extra hours, borrow money or get help from their families. Although 34% of these workers claim they are using their side hustles to help them sustain their personal finances for the moment, 25% of them now see it as a possibility of a full-time job in the future. This should alarm their employers. When someone is forced to take out debt, it can have a serious impact on their quality of life. Prudential's survey found that 55% of Millennials believe debt is preventing their personal goals such as having children or owning a house. One reason for the problem could be that many younger generations have not been taught basic financial literacy skills such as budgeting and how to save money for investments. Brandon Goldstein, ChFC(r), Financial Planner at Prudential Financial, says that if you don't keep an eye on your finances it is easy to let good savings and spending habits slip. As a millennial, I understand how difficult it is to manage financial responsibility while still enjoying a social life. This year, I was able to attend a few weddings. The expenses for travel and gifts really added up. Goldstein suggests that younger workers start by writing down all their expenses, including debt, in a given month. He says, 'It can open your eyes to where your money is going.' This knowledge can be a first step towards creating a budget and outlining savings and spending goals. Christina Gialleli (Director of People Ops at Epignosis), says that employees want financial wellness benefits to help them reduce stress and anxiety caused by financial crisis and uncertainty. She also points out that retirement planning, investment programs, and emergency savings are the most desired benefits for employees. Employees will be happier if they have financial benefits to help them cope with stress and uncertainty. Gialleli says that it isn't a one-size fits all approach and that companies must be flexible in their benefits packages. Gialleli also acknowledges that financial wellness can be sensitive. She says that having an outside instructor conduct it would eliminate privacy concerns and allow employees the freedom to speak freely. "Another option is to provide 1:1 training sessions for trainees, so that they can really open up and talk about their concerns and questions. Many people feel the pinch as prices rise. This will help them build a nest egg that will allow them to live the life they want. They'll also be able to return the investment by bringing a happier, more productive self to work. Everyone benefits from financial literacy.