What is Financial Literacy?

  • The ability to effectively evaluate and manage one’s finances in order to make prudent decisions toward reaching life’s goals
  • The understanding of money, cash flow, Basic economic/financial concepts, debt/risk management
  • 2 out of 3 households will probably fail to realize life goals
  • Financial illiteracy is passed to the next generation
    – Only 23% of kids surveyed indicated that they talk to their parents frequently about money, and 35% stated that their parents are uncomfortable talking to them about money

A picture of financial stress for many employees looks like this:

  • See Little Way to Save 47%
  • Consistently carry balances on their credit cards 45%
  • Find dealing with their financial situation stressful 35%
  • Reported their stress over financial issues increased over the last year 33%
  • Find it difficult to meet their monthly household expenses on time

(Source: PwC’s Employee Financial Wellness Survey 2015. More recent data may alter this assessment)

Financial Wellness Programs are Gaining Traction

More than 35% of sponsors of large retirement plans (5,000+ participants) currently offer a comprehensive financial wellness program (beyond a standard 401(k) education program. 1 89% of companies were somewhat or very likely to expand their focus on the financial well-being of their employees in 2016. 2 Financial wellness programs not only help participants save for retirement and improve workplace productivity, but they can decrease related health care costs for employers. 2

(Sources: 1 PSCA’s 59th Annual Survey of Profit Sharing and 401(k) Plans.  2 Aon Hewitt)

Here’s the Problem with Money

There are a lot of things influence how we spend it and what we spend it on.

  • Emotions – instinctive feelings
  • Values – one’s judgment of what is important in life
  • Culture – behavior characteristic of a particular social group

The 3-legged stool

This is where many people will get their money from in retirement.

  1. Retirement Plan (Defined Benefit/457 Plan)
  2. Social Security
  3. Personal Investing (Home, bank account, IRA’s, Life Insurance)

We Suggest You Focus on Your Budget and Priorities

  • Cut expenses but pay yourself first
  • Emergency funds and loans
  • Sell unnecessary items
  • Insurance and taxes

A Secure Financial Future Doesn’t Just Happen Prepare for your financial future now.

  • Analyze the current situation
  • Identify needs and goals
  • Develop a sound plan
  • Monitor regularly
  • Adjust as circumstances evolve

The more time you have to prepare, the less you should have to worry about later.

This information has been provided for general informational/educational purposes only and should not be construed as tax, legal or investment advice. Please consult with your financial, tax, or legal professional regarding your specific situation.