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Money Network Presents
Financial literacy and the American worker.
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Introduction
This study takes a look at what American workers believe and how they behave when it comes to money management.
3,378
100%
18+ Years Old
100%
are Employed in the US
More Than a Paycheck
Getting paid isn’t the only thing employees look to employers for. They're looking for advice on what to do with their money.
Not every employee feels financially literate.
82%
I find it difficult to make money decisions
15%
I'm very confident about how I manage my money
19%
I'm not afraid to take risks with money
Financial literacy — what is it?
It’s the ability to know how to manage one’s financial resources effectively for a lifetime of financial security. It includes knowing how to make informed decisions around things like
Investing
College Tuition
Insurance
Retirement
Taxes
Budgeting
Real Estate
And the lack of financial education is keeping employees up at night
61%
Of workers are kept up at night by concerns about having money to pay their bills
47%
Don't save because they are focused on paying off debt
56%
Want to manage their money better, but can't afford to do so after factoring in bills and debt
In order for employers to help, they need to understand the unique points of view and financial education needs of their employees.
Take the quiz6 Key Financial Personalities
The Check-To-Check Cycler
- Live paycheck to paycheck
- Aspire for a stronger, more secure future but feel weighed down by the pressures of day-to-day expenses
- Want to save to get ahead of the curve but find it difficult in lieu of simply getting by
Buried by bills
Can't get ahead to save
Money translates to security
74%
Devote their paycheck to day-to-day bills
79%
Want to manage money better, but can’t due to bills
96%
Say that money saved equals security
The Eager Investor
- Risk-takers who feel comfortable making money decisions
- Seek the thrill of turning their money into something bigger
- Save consistently, but also encounter difficulties when focusing on short-term vs. long-term growth
Confident Risk Takers
Saving and Investing
Active Money Managers
2x
More likely to explore new ways to save and invest
72%
Are not afraid to take risks with their money
76%
Are somewhat confident in their money management abilities
The Always-On Money Manager
- Laser-focused on their finances and oversee their budget as if their life depends on it
- Planners and researchers who want access to and visibility for their money — anytime, anywhere
- Secure in their savings and will avoid taking risks that can hinder their plan
Planners and Researchers
Crave Access
Active Money Managers
2x
More likely to save for specific needs
89%
Check their finances daily
0%
Are willing to take risks with their money
The Auto-Pilot Saver
- Trust the process and assume everything is good with their finances, unless told otherwise
- Take comfort in regular, stress-free bill pay and plan a bit for their financial future
- Have sound money decision basics covered and will avoid potentially complex or confusing financial ventures
Consistent Savers
Seek Automation and Simplicity
Avoid Active Money Management
2.5x
More likely to save some money each month
58%
Understand financial basics but are unsure of how to do more
0%
Invest in stocks, businesses or real estate
The Live-in-the Moment Spender
- Focus on living their best life in the short-term, regardless of the long-term cost
- Most likely to break the bank for gifts and celebrations and see no problem with the occasional splurge
- Lack of worry about savings and long-term planning makes them the least likely to have financial keep them up at night
Short-Term Vision
Minimal Money Management Skills
Financially Disengaged
84%
Prioritize living life above saving
37%
Don’t consider savings a priority
1%
Are confident in their money management abilities
The Backburner
- Avoid making money decisions, largely due to the fear of the unknown
- Hate taking risks and feel overwhelmed by the pressures of saving and investing
- When forced, will stick to simple and easy actions, trusting financial advisors to provide guidance above their own instinct
Risk Averse
Seek Automation and Simplicity
Avoid Active Money Management
2x
More likely to save some money each month
76%
Understand financial basics but are unsure of how to do more
67%
Say that money saved equals security
How to Help
Five key ways employers can help
01
Show Concern
70% of employers feel compelled to help employees better manage their personal finances. Help new hires fully understand payroll processes, schedules and potential investment options, and continue to check in with them throughout their tenure.
02
Share the Knowledge
Offer resources that empower employees to make smarter money decisions. Try periodic in-office trainings or seminars, print and digital materials across a range of financial topics, and solicit questions and feedback from colleagues to gauge and cater to topics of interest.
03
Navigate the Pitfalls
Help workers learn how to distinguish legitimate communications from potentially fraudulent ones. Offer reminders of basics such as how to protect account information.
Employees who consider themselves financially illiterate are more likely to fall into traps and become susceptible to identity theft or financial fraud.
04
Simplify and Streamline
Grow employee financial confidence by providing a single, turnkey platform that offers complete visibility into their accounts and investments. Move to consolidate money management tools and prevent the lost time, questions, and headaches that come with the use of multiple systems or applications.
05
Expand Payroll Options
Use payroll cards to enable employees to feel more secure and confident with their spending. And hit a win/win/win by offering a repeatable and fast process for finance and HR teams.
While some employers still prefer the traditional paper check, 82% of employees consider digital, flexible alternatives to be a major benefit.
When it comes to employees
97%
Equate money with security
15%
Are confident in how they manage their money
Let’s work together to get 100% of your employees feeling confident & secure.
We also have financial literacy programs for your employees.
Help Your Business
- Get 100% electronic pay across your organization
- Guarantee new employees first pay with instant-issue cards
- Reduce payroll administration and distribution costs
- Ensure prompt disbursement and access to wages for participating employees
- Improve payroll security and control
- Deliver uninterrupted pay in the face of a disaster
Help Your Employees
- Manage finances anytime, anywhere with the Money Network Mobile App
- Gain easy access to wages on payday
- Pay for virtually anything without the need for carrying cash
- Set aside funds with the Money Network Mobile App Piggy Bank feature
- Access cash at 40,000+ surcharge-free ATMs
- Safely access and manage money without the risk of incurring non-sufficient funds (NSF fees)
- Cash Money Network Checks for free at 6,000+ participating locations
Want more info?
Interested in offering Financial Literacy Programs to your employees?
Download this brochure and learn more about Money Network today.
