FINANCIAL STRESS IS EXPENSIVE!

11% of Americans (that is one in nine!) are living in poverty.

It is estimated 44% of Americans live paycheck-to-paycheck because their salaries do not cover basic living expenses.

It is estimated 42% of Americans live paycheck-to-paycheck because they live beyond their means.

My name is Jennifer Harter and I own Jennifer Harter Consulting in the small town of Central Square, New York. The closest city is Syracuse, NY. I have over 25 years experience helping other people achieve their dreams and goals without sacrificing their current happiness and I have almost 15 years experience in the Finance / HR arena so I know what employees want and how much fringe benefits already cost employers. I was fortunate to have been able to serve in the Air Force and then go on to get my bachelor’s in accounting and my MBA at an accredited school here in Oswego, NY.  

I am going to start with a statement that may be seen as controversial:

Poverty is optional.  

When I was first starting to determine what I could do to help make the world a better place I started by looking for a moonshot. For those who do not know what a moonshot is, it is an almost overwhelming goal. It is something that almost seems impossible to do, but it is a question that just has to be answered. At the time I was figuring this out for myself, I was working for a small not-for-profit in the most impoverished section of Syracuse. This is an area more impoverished than Detroit. There are dozens of gangs in this area. Shootings and stabbings are part of daily life. Nobody ever sees anything. Drugs are rampant. In fact, we did not do drug testing on our employees because it was expected that none would pass. And, yet, for all of this violence in teens and young adults, I noticed the elders and children were very respectful. Most people, especially those over the age of 35, referred to their elders as “Mister” or “Mizz”. The elders dressed up when they went to Church or had a meeting to attend. The children had the same hopes and dreams as children do everywhere. They were taught “please” and “thank you”. The community came together to raise these children. It really had a small town atmosphere. Everyone knows everyone, there are few secrets, and a lot of gossip. I also realized children never say they want to be on welfare when they grow up. Children never say they want to live from paycheck to paycheck. Children never say they want to struggle. 

I started to ask myself: at what age do people give up on their hopes and dreams? In asking these questions I was hoping that I would be able to figure out what age that was so that I could start reaching them before they reach that age. In other words, I really hoped that by reaching these children before they gave up, that they would never give up. And, in doing so, they would not have to struggle and give in to societal pressures to be “just like everyone else”. I started to ask the question “how can I make poverty optional?”. 

I quickly realized that poverty is already optional. With the technology and resources we have today anyone in the world from anywhere in the world can be successful, can be a millionaire or a billionaire, can live his or her dream life. 

So, why do so many struggle? The answer, I found, is simple. Most people are not taught about money, finances, or investing. They are taught they should save some money, they should invest in a 401(K), they should work hard and pay their bills. They are taught that if they work hard and do what they are supposed to do, they will be successful in life and that is all they can expect. And they should be happy with that. 

But then they look around and they see others who have more- who have a new car, who have that nice big house, travel, really seem to be having a great time. And, they start to think why me? Why can’t I have those things? What am I doing wrong? 

The answer is: they are not doing anything wrong. They have done everything they were supposed to do. Unfortunately, the system failed them. They were taught to be good employees and good consumers. Well, this is great for the economy, but it is not great for the soul.

And, in addition to the soul-crushing aspect of this way of life, the person ends up with poverty, financial stress, physical symptoms that actually make the problem even worse, and they end up living from paycheck to paycheck. This vicious cycle makes it more and more difficult for the average employee to believe they can succeed. In fact, this vicious cycle does make it more difficult for the average employee to succeed. They are stuck in this rut that they cannot get out of. They are trapped in a hamster wheel of despair and worry.

And, this affects the employer’s bottom line. It is estimated financial stress costs employers thousands of dollars annually per employee in days off, sick time, lack of focus, and lost productivity. 

As a fellow Finance Director, I recommend you give your employees the tools they need to break the paycheck-to-paycheck lifestyle so they can focus better on their jobs, be more productive in their roles, and help increase your bottom line.

In this way, everyone can win.

So, now you may be wondering how you can give your employees the tools they need to succeed. You could teach your employees yourself. After all, you are more than qualified. But, if your finance office is as busy as most they will not appreciate the extra task of training employees about finances, investing and money. In fact, if you yourself are in the Finance, I am sure that you do not want to take on these extra tasks. Who has enough time? And, who has the time to gather all of the resources needed to give to these employees? And, depending on the size of your company, the employees who need this help the most may either not take their co-workers in Finance seriously or they may be concerned about having any sensitive information they share coming back to hurt them, whether by being reported to HR, to the supervisor, or some other way. And, while we in finance know that we are held to a higher standard and would never do this, we also understand where this perception could come from and why it persists. 

What is, then, the easiest way to help our employees?

I am going to recommend helping your employees through the wellness program that your company most likely already has set up. According to the society for human resource managers 70% of employers offer wellness programs and these programs yield an average 150% return on investment.

Chances are your wellness program offers the standard offers: an Employee Assistance Program assessment for mental/emotional issues and a  few telephone sessions with a therapist, some discounts with national vendors, maybe promote annual health screenings… It is the bare minimum and very few employees actually take advantage of it. 

Employees are looking for innovative benefits that will help them achieve work/life balance. Justworks.com recently listed a dozen or so free or inexpensive options to expand employer wellness program options. These included headspace memberships for meditation, walking meetings, subsidizing gym memberships, and offering Talkspace, an online therapist service.

But, these offerings just deal with symptoms that are caused by a larger problem. When they use them, employees are turning to these services in large part to deal with the stress and associated symptoms caused by living in debt.

As I mentioned before, one in nine full-time US employees are living at or below the poverty line. This does not include adults who work multiple part time jobs. And it does not include employees who earn enough to be above the poverty line but are still mired in debt.

Do you have employees making less than $11.83/hour?

That is the amount at the poverty line for a family of four.

A full time single employee making minimum wage is living in poverty.

And, please note, the poverty level is not the same as a living wage. The poverty level is what is considered enough to provide the bare minimum to survive without needing government assistance. The living wage takes into account the cost of housing, food, health care, transportation, child care, and taxes.

According to MIT’s living wage calculator, in 2018 the least expensive place to live in the US was McAllen, TX. The living wage in McAllen is $10.31/hour for a single person. Manhattan is over $16/hour and that assumes one either has rent controlled housing or roommates.

Financial stress costs employers thousands of dollars per employee. Fiscal stress can manifest itself as depression, anxiety, illness, denial, fear, poor sleep, gastrointestinal distress,and strained relationships. And most of this can be attributed to employees uneducated about money, finances, and investments.

The general result is millions of Americans living paycheck-to-paycheck, a vicious cycle that can seem impossible to break.

There is a growing movement demanding schools start teaching students about finances. But, in the meantime, something has to be done to teach adults how to handle their finances. Unfortunately, the people who need this knowledge the most are the least likely to pay someone to teach them. And employers pay dearly for this ignorance.

This is where I come in.

So, do you want a low cost option to offer your employees the support they need to break free of the paycheck-to-paycheck cycle and reduce fiscal stress? Do you want a low cost option that can help your employees show up at work well-rested, focused, and ready to give you their best?

Do you want to be known as a Visionary Employer?

I offer a subscription based program for visionary employers that gives their employees access to pre-recorded videos, short articles, and a closed facebook group where they can discuss their financial questions, problems, and successes. I have weekly live calls discussing questions asked in the group.

Topics include:

– how to allocate their paycheck so they can pay the bills, save for fun times, save for the future, and have emergency funds, whether they use the envelope system, the jar system, or accounts

– how to increase their credit score

– how to use credit wisely

– how to buy a car

– how to buy a house

– does it make more sense to buy or rent

– options to pay down debt

– what to do when there is not enough money to pay the minimum monthly payment

– the difference between needs and wants

– how to prioritize wants

– how to invest, including terms, options, pros and cons

– and much more!

The price for this service is only $1 per employee per month. In exchange you will have employees who are more focused and productive. This fee includes the website resources, the facebook community, and up to three one-on-one counselling sessions annually.

Only $1 per employee per month?

This is not a typo. I want this to be affordable for you so you can reap the greatest Return on Investment. Your employees will be able to live more comfortably on the salaries you are providing. And I will accomplish my mission. Everyone wins!

Remember, I am on a mission to help 1 million people break the paycheck-to-paycheck cycle by 2030. I am starting with adults, but have pledged 10% of my revenue to set up an account so this can eventually be offered to teen groups that can use club funds to invest real money in various options so they can learn first-hand, with club money, how investing in the stock market can vary from investing in bonds, or a savings account, or bitcoin, and so on without risking their own money or their family’s money.

Are you ready to become a Visionary Employer? Are you ready to help your employees and your bottom line? Do you still have questions?