How to build a global financial wellbeing strategy for parents and carers
The financial impact of being a parent, or carer, is multifaceted. There are direct costs associated, such as medical, daily living expenses, childcare or education fees, housing, and transportation. Then there are indirect costs such as reduced income, fewer opportunities to invest, or making emergency or retirement contributions. Caregivers have many financial plates to spin and less time to learn how to make the most of their salaries.
Right now 73% of employees in the US are caregivers. That’s a huge majority in the workplace and presents a unique opportunity for employers to provide valuable support.
An effective way to assist employees with caring responsibilities, to make the most of their time and salary, is to support the financial health of the full household with personalized and inclusive financial education.
Recent research from the Employee Benefit Research Institute (EBRI) found that: “Caregivers and non-caregivers alike broadly agree that their employer has a responsibility to help employees with their mental, physical and financial wellbeing, suggesting that employers have a built-in base of individuals who will buy into their wellbeing initiatives.”
By helping parents and caregivers manage their finances through a robust and integrated financial wellbeing strategy employers can reduce stress and improve overall wellbeing. With that in mind here are our top considerations to build a global financial wellbeing strategy for parents and carers.
Talking can lighten the load
Consider a campaign from Global Money Week at your organisation. Get employees to talk about money stories relating to the challenges they face, such as the ‘motherhood penalty’ that penalises working mothers in terms of pay and other benefits.
Destigmatising talking about money is proven to help people be more open and encourages them to ask for help when they need it. Talk Money Week gives businesses the opportunity to engage different employee communities – such as the carer community – with personalised financial education and training.
Educate through workshops and champions
Arrange workshops or seminars that focus on topics most relevant to the carer community, such as planning, budgeting and saving. Tailor the session to address the specific challenges faced by caregivers.
At Nudge, we run masterclasses with our clients on topics like ‘creating a budget’, ‘managing debt’, and ‘building an emergency fund.’ Workshops are a great chance to highlight where to find more information on support like government assistance programmes and tax benefits that are available to caregivers and parents. We’ve found that organisations with dedicated financial wellbeing champions can more effectively nurture and support employees to navigate challenges and signpost to the best help available. The training environment also creates a safe space to discuss barriers with employee resource groups (ERGs) and address questions or feedback.
Benefits and insurance education goes a long way
Parents and carers are notoriously time poor, so it’s essential to continue to find ways to remind employees with caring responsibilities of the benefits and insurance options available to them. Provide clear explanations of health insurance coverage, life insurance policies, and any other relevant benefits that may ease the financial burden associated with caregiving.
When employers recognise the unique financial and wellbeing challenges faced by parents and caregivers, and take proactive steps to support their specific needs, it will empower employees to make the most informed decisions for them and their dependents. By combining financial education and a supportive, open workplace culture, employers can create a holistic financial wellbeing strategy that enhances the overall wellbeing of caregiving employees. Ultimately, investing in the financial wellbeing of caregivers is an investment in the health, productivity, and satisfaction of the workforce.
We have a calendar of relevant awareness dates throughout the year. We also provide toolkits for those dates to give our client community every opportunity to raise awareness of financial wellbeing, particularly for different employee groups.
Interested in learning more about how nudge can help your caregiving employee community? Get in touch.
In partnership with Nudge
A leading financial wellbeing benefit using behavioural science & technology to help employees.
