Trends in Financial Wellness Benefits

Filed under: Benefits

Here is the cost of some common US household expenses in 2025:

• The national median mortgage payment is $2,211/month
• The average car payment for new cars is $745/month; $521 for used cars
• The average cost of full-coverage auto insurance is around $223/month
• The average student loan payment is $200 to $300/month
• The average credit card payment is $181/month
• The average cost of childcare is $1,039/month 

It’s no wonder, given the rise in today’s grocery, auto and housing costs alone, that most Americans are struggling financially. In fact, a recent study found that two out of three workers admit to being distracted at work by worry over their financial situation.

For this reason, many employers are proactively offering a range of financial wellness benefits to help workers better manage their money. The objective is to provide tools, services, and means to become more financially literate and make informed choices regarding their long-term security and peace of mind.

A financial wellness program should have beginner, intermediate, and advanced tracks in order to serve workers at the level they need. Resources that address debt management, credit building, short-term savings, and investment planning are some of the most popular trends among today’s employer benefits.

Financial Counseling

A good place to start is with financial counseling so that workers don’t feel like they have to figure it all out on their own. Some may prefer online research resources, but many (including young adults) would welcome the opportunity to speak with an experienced financial and investment advisor. Whether just starting out (choosing 401k options, short-term savings, student loan options), mid-career (managing debt, buying a home, college planning), or later in career (portfolio management, tax planning, retirement planning) – free and regular access to a financial advisor can benefit every demographic.

Employee Assistance Program (EAP)

Many employers offer an EAP but they tend to be underutilized. Promoting the free services of an EAP financial advisor is an excellent gateway to increasing engagement in all of the services an EAP provides. These may include child and elder care resources, legal services for adoption, divorce planning, or drafting a will, and stress management and resilience resources for mental health and/or substance abuse treatment. All of these types of services can contribute to workforce financial wellbeing and overall wellness.

Technology-Based Tools

For workers who prefer to do their own research, consider offering financial coaching via an AI-powered platform that may provide:

• Personalized advice
• Interactive courses
• Calculators
• Investment education
• Goal/investment tracking
• Portfolio dashboard
• Direct access to savings and investment vehicles

Seek a user-friendly platform that is smartphone-optimized, integrates with your existing HR or payroll systems, and scales for all levels of financial literacy.

Emergency Savings Accounts

One thing everyone needs is an emergency fund. Encourage and enable workers to build and maintain a liquid savings account through a payroll deduction program, and partner with a bank or credit union that offers a competitive savings rate. Consider making after-tax matching or fixed contributions up to a certain threshold. For workers who choose a high-deductible healthcare plan (HDHP), consider contributing to their health savings account. An HSA can function as a tax-free, liquid emergency fund when workers pay for HSA-eligible expenses out-of-pocket and keep/track their receipts.

College Funding Assistance

Many workers are saddled with college debt, both in entry-level positions and mid-career professionals paying off their advanced degree loans or their children’s tuition. Employer assistance may include:

• Making direct employer contributions toward student loans
• Offering student loan refinancing resources
• Hosting college planning seminars
• Offering employer-sponsored 529 college savings plans, including direct deposit, matching contributions and automatic payroll deduction

Earned Wage Access

Employers are increasingly offering on-demand pay programs so workers can access earned wages ahead of their usual pay cycle. This helps workers from amassing credit card debt, incurring overdraft fees if they become overextended, or using exorbitant-interest payday loans.

Housing Assistance

Home-buying continues to be unattainable for many young adults, and even older workers find themselves overwhelmed with high-interest mortgage payments. In response, many employers have started offering benefits such as funding assistance for a down payment, access to low-interest rate mortgage loans, and group rates for home warranty and homeowner insurance policies.

Family Protection

Most employers offer life insurance for full-time workers. As an alternative, supplementary or voluntary benefit, consider offering a hybrid life insurance policy. These contracts provide the flexibility to meet multiple objectives, including retirement income, paying for long-term care assistance if needed, and/or a death benefit for heirs.

Dependent Care Assistance

The cost of having children generally means either a parent stays home or pays for outside care. The same applies for workers who have a disabled or elderly family member who cannot function on their own. Family financial benefits start with paid family leave, adoption assistance and/or fertility benefits, and continue on through dependent care flexible spending accounts (FSAs) and child/elder care resources (local daycare network, onsite daycare, vetted back-up care resources). Even workers who do not have traditional progeny would greatly appreciate parity resources and subsidies for their “children”, such as pet insurance, pet daycare, dog-walking, and pet boarding.

Lifestyle Spending Accounts

Another new trend in financial benefits is offering a Lifestyle Spending Account (LSA) to each worker. Individual LSAs are exclusively funded by employers as a post-tax reimbursement account used to pay for “lifestyle” expenses of each worker’s choosing. Options may include gym membership, athletic gear, insurance policies, mental and behavioral health support, etc. Subsidies are typically $800 to $2,000 per year, per worker. The employer can set up multiple benefit-specific accounts (e.g., fitness/wellness, entertainment, work-from-home expenses) and set specific guidelines (e.g., eligible population, dollar amount, spending timeframe).

Financial Windfalls

There are ways for employers to help out during particularly difficult times, either for the entire workforce or on an individual basis. For example, economists are predicting even higher inflation on prices for groceries and other household items over the near-term due to global tariffs. Consider issuing an “inflation bonus” to your workforce in the form of a cash bonus or gift cards for specific goods such as groceries and gas. This income or cash-equivalent must be reported as wages on W-2 forms. During volatile economic times, a one-time or occasional windfall can really help out workers when they most need it.

Then there are phases when a single worker faces hard times and needs extra cash (e.g., car repair, expensive medication). This is when it’s useful to have a PTO conversion program in place. Remind workers that they may convert accrued paid time off, such as one week of vacation, into a cash payout for immediate needs.

Financial wellness is a major component of wellness in general. When workers are concerned about a new emergency expense or their long-term money problems, they can be consumed with stress and worry. Offering a robust financial wellness program with a wide range of resources can go a long way to improve not just a worker’s situation, but the company’s bottom line as well.

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