For a provider of financial education in your workplace, go to www.pfeef.org and click on Quality Providers.
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Increase Your Company's Productivity through Financial Education
Employers can now estimate the value of providing financial education workshops to their employees through our ROI (Return on Investment) calculator. Go to www.personalfinancefoundation.org
to use this valuable tool. If you use
one of our affiliated organizations to educate your employees through workshops, online courses, or money coaching, we will work with you to do pre-and post-testing to show how your company has increased its productivity.
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| Opt-in/Opt-out PFEEF does not send or condone the sending of unsolicited commercial email. Subscribers are added to our electronic newsletter on an opt-in permission basis and may unsubscribe through links in every mailing. |
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Welcome to the Personal Finance Employee Education Foundation Newsletter
Please join others in staying informed about the importance of Employee Personal Finance education through our monthly newsletter.
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PFEEF's Mission
To promote and facilitate financial education in the workplace. The PFW Scale, Return on Investment Calculator, the Financial Education Providers List, as well as other resources will enable employers to understand that employees who have their finances in order will be more productive.
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Featured Employer
Aetna, who is getting national recognition for the success of their Financial Wellness Program has completed a recent case study: Aetna's Award Winning Financial Wellness Program.
Aetna wanted to create a wellness program that would promote the total well-being of their employees on all levels. The company had already begun to implement a successful physical wellness program and felt the program needed a component to address and improve employees' financial wellness as well. Understanding that financial concerns are one of the top causes of stress and that stress can result in a number of different health issues, they needed to take their wellness program to a whole new level. But the next question was how to do it.
click here for the full story
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Wellness Scope too Narrowly Focused on Health
Wellness programs, health promotion programs, health assessments, health fairs, discounted fitness programs, chronic disease management programs, etc., are just some of the names for employer-sponsored programs designed to improve the health fitness of employees and at least slow the damage to (if not improve) the employer's health care bottom line.
These programs have all worked to varying degrees, and no one would deny that desperate times call for creative measures where stemming the rising cost of health care is concerned.
Compensation is not enough.
Many employers believe that because they offer competitive compensation programs, their work is done in the area of employee personal finance. Certainly, an employer can choose to drop off the map after those 2% salary increases are divvied up among the employee population.
But an astute employer, particularly one that is already investing significant dollars in health promotion, will see the benefit of assisting employees in becoming savvy savers, spenders and investors as well. These employers understand that by improving the financial wellness of employees, they are also creating an environment for better overall employee wellness.
"The Difference," by Jean Chatzky is testimony to the fact that people at different levels of financial wellness possess very different characteristics. She calls people with the lowest level of financial wellness Further-in-Debtors.
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| Survey: Workers Still Struggle with Retirement Savings
Four of five Americans are expected to fall short of meeting all of their financial needs in retirement, unless they improve their savings habits or retire at a later age, according to a study by Hewitt Associates.
To meet their financial needs in retirement, employees will need 15.7 times their final pay when factoring in inflation and postretirement medical costs, reports the HR consulting firm.
Although this estimate is on target with Hewitt's prior projection in 2008, the research notes that many employees find themselves in a tougher financial situation because they've seen their retirement accounts decrease over the past two years. Of the 15.7 times final pay, Hewitt estimates that Social Security will provide 4.7 of it, leaving employees responsible for making up the remaining 11 times final pay.
This will likely have to come from employer-provided retirement plans and personal savings. Yet of the more than 2 million employees at 84 large U.S. companies that Hewitt examined, only 18% of workers who are expected to work full time will meet this goal.
click here for the full story |
| Americans Flunk Personal Finance, Need Benefits
A new survey finds that many Americans are woefully unprepared for retirement, not to mention their poor management of everyday finances.
This may provide an opportunity for employers to offer personal financial guidance and retirement education to their employees in conjunction with retirement savings vehicles, such as defined benefit and defined contribution plans.
The National Foundation for Credit Counseling (NFCC) asked consumers to grade themselves on their knowledge of personal finance for their annual Consumer Financial Literacy Survey; they discovered that 34%, or more than 77 million people, gave themselves a grade of C, D, or F.
"Although the survey did show some improvements in consumer behavior as it relates to personal finance, there are still serious deficiencies which impact consumers' ability to properly manage their money, particularly during an economic crisis," says Gail Cunningham, spokesperson for the NFCC.
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We appreciate your interest in the Foundation.
Sincerely,
Judith Cohart, President
Personal Finance Employee Education Foundation Inc
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