1. FINANCIAL WELLNESS
PROGRAM

2. Objectives
This programme designed for trainers of wellness champions. It
will enable them to:
 Gain an indepth understanding of the concept of financial
wellness
 Understand the importance of implementing financial
wellness programs at the workplace
 Articulate the benefits of a financial wellness program to
employers and employees
 Understand the components of a financial wellness program
 Understand how to measure impact of a financial wellness
program
 Understand how to start a financial wellness programs at the
workplace
 Gain a basic understanding of the concepts of Financial
Education

3. What is financial wellness?
 Financial wellness results from making
informed short- and long-term financial
decisions that result in optimal health,
productivity, and a solid foundation for every
stage in life.
 A state where financial stress is gone,
replaced by actions that support well thought
out goals.
 In a nutshell, you mindfully manage your
money, instead of your money managing you.

4. Why Financial wellness?
 Financial issues affect more employees than
physical illnesses combined.
 More than half the workforce lives paycheck to
paycheck
 Many people save little, if any, money at all
 Living paycheck to paycheck and failing to
save money results in a high percentage of
stress among employees
 Anxiety over stress can negatively affect your
health and productivity

5. Impact on employers
Although finances are a personal issue they can
have a direct impact in the workplace.
 A successful organization depends on successful
individuals.
 Organizations that provide financial wellness
programs to their employees witness positive
effects on their bottom line

6. Impact on employers
 Financially distressed employees have trouble functioning in
their jobs, consequently hurting their physical health as well
as taking a bite out of the employer’s bottom line.
 Individuals with stress caused by large outstanding debts and
unstable financial situations report incidences of ulcers and
digestive problems, migraine and other headaches, anxiety,
depression and heart attacks
 Stress translates into higher health care costs and other
negative effects on the workplace
 Financially stressed employees experience higher
absenteeism and turnover, lower levels of job satisfaction,
lower satisfaction with compensation and lower productivity.
 Presenteeism – the time employees spend at work not
working – also is a big factor. 80% of employees report
spending between 12–20 hours of work time per month
dealing with personal financial issues.

7. Financial wellness can
potentially...
 Decrease turnover
 Increase productivity
 Enhance company culture
 Better employee-employer relations, higher
morale, increased retention rates, lower fringe
benefit costs, lower transaction costs, and
increased output
 Above all, financial wellness can pay long-term
dividends to your company health and your
employees’ quality of life.
 Highermorale = increased productivity = higher
profits

8. The situation
 The current global
economic crisis has left
many people feeling
vulnerable.
 These volatile times have
also exposed a frightening
reality; many people are
completely unprepared to
deal with personal
financial crisis

9. The reality
 The current global economic situation is NOT
the sole cause of many employees’ financial
difficulties.
 The true problem is a widespread lack of basic
understanding of financial principles and the
poor choices that result.

10. Benefits to employees
As employees move into a position of effectively
directing and managing the income they earn,
they enjoy the benefits of:
 Less financial stress
 Reduction of debt
 Paychecks that go further
 Savings and investment increases
 Financial goal realization
 Greater financial security and strength

11. Components of a financial
wellness program
The goal of a financial wellness plan is a shift in
behavior . It involves;
 Creating awareness of the current financial
situation
 Providing education for establishing financial
goals and
 Promoting behaviorchange inorder to achieve
personal financial goals through informed choices
in the financial planning process.

12. Awareness
 Distribute financial education materials and
articles from reputable vendors via
newsletters, SMS, handouts, and posters
include posting information on bulletin boards,
intranet, in break rooms, holding seminars,
along with a lunch and learn format, making
announcements at staff meetings.
 Keep employees informed of all changes and
options in their benefits plans
 Use success stories from co-workers to inspire
and motivate the workforce

13. Education
 Provide employees with understandable
worksheets that help them prepare personal
budgets, determine net worth, estimate
retirement needs, etc.
 Conduct lunch and learns or seminars around
topics of interest to both the company and the
employees
 Hold periodical financial fairs to give
employees open access to a variety of
available financial services and products

14. BehaviourChange
 Utilize existing Employee Assistance
Programs (EAP) to encourage people to seek
counseling and assistance
 Periodically host a series of comprehensive
classes with experienced financial and
benefits advisors
 Allow employees access to free or subsidized
personal sessions with advisors or use these
sessions as incentives to participate in other
programs, such as company wellness
initiatives

15. The behaviourchange model
The stages of behavior change developed by Prochaska include:
 Pre-contemplation – “I can’t” or “I won’t:” About 40 percent of all people are
here when it comes to behavior change. They are unaware their behavior is
harmful or risky to their health or may not be ready to admit it.
 Contemplation – “I may:” Individuals in this state are more likely to
acknowledge they have a problem and start moving toward a solution.
Plans are indefinite, but they are forming.
 Preparation – “I will:” Most people in this stage intend to make a behavior
change within 30 days.
 Action – “I am:” In this stage, people are taking overt action to change.
 Maintenance – “I still am:” Change doesn’t end with the action stage;
change is an ongoing process with relapses and new successes.

16. Measuring the impact of a
financial wellness program
 Measurement of any wellness program is absolutely critical to
its success.
 Tracking and reporting results is the key to maintaining
support from senior leadership, discovering weaknesses in
programming, and planning for the future.
 Every good program starts with baseline data. Starting points
for gathering this data include:
 Utilization of health benefits
 Staff turnover
 Absenteeism and productivity.
 To keep momentum going in the short-term, evaluate
financial wellness offerings by tracking participation and
satisfaction levels, and assessing outcomes on behalf of the
employee population.

17. Starting a financial wellness
program
 Starting a quality financial wellness plan is no different
than executing any results-oriented employee
wellness program.
 Examine company needs AND employee interests.
Marry the needs of these two stakeholders. (look at
company data)
 Embed financial wellness concepts into other
established programs (think wellness!) and trainings.
This is an easy way to increase the engagement and
credibility of all company programs
 Develop a strong communication plan
 Determine well in advance how the program will be
evaluated
You’ve got a strong recipe forsuccess!

18. What is Financial Education?
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 Knowledge
 Skills
 Attitudes
For anyone who makes decisions about:
Earning Spending Investing
Saving Borrowing
Good money management
behaviors

19. Why Financial Education?
 Enables people to manage personal finances .
 Allows people make more informed financial decision-
makers through better planning.
 Its strengthens behaviours that lead to increased saving,
more prudent spending and borrowing for sound reasons.
 Facilitates life-long rewards i.e +ve change in financial
behaviour leading to improved well being (Transformation)
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20. Concepts of financial education
 Budgeting
 Savings
 Banking services
 Debt management
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21. What is a budget?
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A Budget is a summary of estimated income and how it will be spent overa
period of time.

22. MY BUDGET
MONEY IN (income) Amount
Salary
Business
Others
TOTAL
MONEY OUT (expenses)
Transport
Rent
Food
TOTAL
SAVINGS
+ Surplus /- Deficit =
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23. LIVING WITHIN MY MEANS
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24. Matching needs to income
 Need: A basic necessity you cannot do
without. These things are necessary for our
survival.
 Want: Something optional, or not needed
for everyday survival. These are things that we
want, and when we buy them, we are happy.
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25. PLAN TO SAVE
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26. CONCEPT OF SAVINGS
 What is a goal you have forthe future?
 Why do you want to achieve this goal?
 How do you plan to pay forthis goal?
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27. CONCEPT OF SAVINGS
 Putting money aside
is the key to being
wise about money.
 “Putting money
aside” is saving.
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28. Long-termvs. short-termgoals
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MY SHORT TERM
GOAL-6MONTHS
MY LONG TERMGOAL -5
YEARS

29. Savings plan
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Savings Goal
Total Cost of
item
Duration Amount to save each week
Short-term
Long-term
Tip: To decide the amount to save every week, divide the total amount of money you
need by the number of days, weeks or months between now and when you want to
reach your savings goal.
Amount to save ÷ Numberof (days/weeks/months) = Amount to save each
(day/week/month) to meet a savings goal

30. Increase yoursavings
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31. Savings small amounts
AMOUNT DURATION TOTAL
20 365 7,300
50 365 18,250
100 365 36,500
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32. CAN I TAKE ON A LOAN?
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33. What is a loan?
 Money that a borrower can use temporarily.
After a defined period of time, the money is
repaid to the owner, usually with interest or a
fee charged for the money.
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34. Why do we borrow money?
 To invest
 To respond to an unexpected emergency
 To consume
 To pay debts
Are the se g o o d re aso ns why we bo rro w?
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35. What are some differences between using
ourown money and using borrowed money?
 A loan costs money
 A loan comes with obligations for the borrower, including
repayment with interest and sometimes group
membership
 You are more free when you use your own money
 By borrowing, you can get a larger lump sum than you
might if you use your own money
 Borrowing allows you to get money more quickly than if
you rely on your own ability to save little by little
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36. Questions to askbefore Borrowing
Money
 What is the schedule for repayment? (i.e.
weekly, monthly)
 How much will I need to repay each time?
 What will be the total amount of the repayment
including interest?
 When will I receive the money? Is this too early?
Late?
 What sources of income or savings will I use to
repay the loan?
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37. Questions to askbefore Borrowing
Money
 If you are borrowing to buy a tool or piece of
equipment: Will the object outlive the loan and
continue to earn money for me?
 Can I charge a price for the goods I buy with the
loan that is high enough to repay the loan and
have money left over?
 Do I need to guarantee the loan with collateral?
If so, what?
 What are the consequences if I fail to repay?
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38. How much debt can I afford?
 Often people take on too
much debt and have trouble
making repayments.
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39. The “Rules of Thumb” forTaking
a Loan
 Don’t let debt prevent you from paying for basic
expenses such as food, school fees, and other
necessary items
 Keep track of the amount and frequency of your loan
payments
 The total of your loan payments should not exceed 20%
of your usual income
 Try to limit borrowing for personal consumption
 Have a plan for making loan payments if it will take time
for the loan to generate more income for you
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40. IN CONCLUSION
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THEEND