Financial literacy equals prevention

At the Northeast Business Group on Health’s annual conference titled “Super Charging Prevention, Employee Wellbeing and Benefits", Jeff Miller, Executive Vice President - Americas at nudge, shared why financial literacy is prevention, how it improves holistic health, and how leading employers are embedding financial education into their wellbeing strategies. Here are the key takeaways:

Employees rate their financial health lowest among all forms of health

• 58% of North Americans report average or below-average financial health, worse than physical (42%), mental (42%), and social (46%) health.
• Globally, 28% rate their financial health as poor or very poor, compared to just 10% for the other wellbeing pillars.

Poor financial literacy has a direct impact on physical, mental, and social health.

Those with low financial literacy are:

• 16% more likely to suffer from depression
• 9% more likely to report anxiety
• 7% more likely have sleep problems
• 3% more likely to experience panic attacks
• 2% more likely to report suicidal thoughts
• 20% say poor financial literacy led to financial struggles that distanced them from loved ones - the same share report extreme relationship tension caused by money

Why employers can't ignore financial wellbeing

• Approximately 30% of employees face severe financial stress
• Financially stressed employees are 5x more likely to be distracted at work
• 1 in 3 say money worries hurt their productivity
• Stressed employees are twice as likely to look for a new job

While many employers invest heavily in mental and physical wellbeing, neglecting financial wellbeing can undermine the effectiveness of those investments.

Exacerbating the already intricate issues facing employees

Open enrollment has become a critical moment for budgeting and financial planning. Employees are no longer passive participants - they're now consumers of employer-sponsored benefits, making important decisions about insurance plans, HSAs, ESPPs, and retirement savings. Each choice carries financial consequences, and employees must determine what they can realistically afford to purchase or contribute for their future.

Yet, despite the complexity of these decisions, most employees spend less than 30 minutes reviewing their options. Many make no changes at all, even when their personal circumstances shift or new benefits become available - suggesting either a lack of understanding, time, or confidence.

Compounding this challenge is the broader financial environment. Outside of work, we’ve become a largely cashless society. People often receive goods or services first and pay later, making budgeting more difficult, and increasing vulnerability to inflation, rising interest rates, and mounting debt. Buy-now-pay-later is now commonplace - even for groceries and takeout. DoorDash offers it. So do most retailers. Auto loans can now stretch to seven years, and the average credit card balance in the U.S. exceeds $7,000.

What leading employers are doing to take action

Companies like Microsoft, PepsiCo, GSK, and Delta are:

• Gathering financial health data from EAPs, 401(k) record keepers, wage garnishment statistics, healthcare providers, and surveys.
• They are using this data, combined with financial health research, to make the case for financial education as a core benefit.
• Integrating financial wellbeing platforms with their mental and physical health platforms to establish warm handoffs / a seamless experience for employees.

Results? Employees with strong financial literacy are:

• 7x more likely to rate their mental and social health as excellent
• 6x more likely to rate their physical health as excellent
• 15% more likely to feel supported by their employer

Financial education is a preventative benefit.

We can’t control inflation, interest rates, market conditions, or the deferred payment trend. But employers can offer every employee access to personalized, localized, foundational, and in-the-moment financial education to help them navigate the ever-changing world of money. It’s time to close the gap in workforce wellbeing.

Financial Literacy is prevention.

Download the 2025 Global Financial Wellbeing Report to explore the data behind this article