Financial Wellness in United States

Effects of high financial wellness stress on health and personal life

• Mental health: increased anxiety, irritability, mood swings, and depressive symptoms.
• Sleep: difficulty falling or staying asleep; poorer sleep quality.
• Physical health: headaches, muscle tension, stomach issues; potential long-term risk for hypertension and cardiovascular strain.
• Coping behaviors: unhealthy strategies (excessive alcohol use, smoking, overeating) and reduced physical activity.
• Relationships and social life: more conflicts, withdrawal from loved ones, and strain on close relationships.
• Work performance: difficulty concentrating, lower productivity, higher absenteeism or presenteeism.

What helps in the workplace

• Provide access to financial wellness resources and counseling; consider debt budgeting and planning support.
• Offer robust mental health support (EAP, accessible group sessions, and psychoeducation). Tools like October can provide digital group sessions, assessments, and content on stress management when appropriate.
• Create supportive policies: paid time for financial planning, flexible scheduling, and transparent communication about benefits.

Effects of High Financial Wellness Stress on the Economy

• Consumption tends to fall and GDP growth slows due to precautionary saving and cutbacks on non-essential spending.
• Credit risk rises and financial instability can spill over into banks and markets through higher loan defaults and tighter lending standards.
• Labor productivity declines with more absenteeism and presenteeism, and higher turnover increases recruitment and training costs.
• Health costs rise with greater mental and physical health issues, leading to more disability claims and reduced work capacity.
• Inequality widens and policy transmission weakens, potentially reducing overall demand and amplifying economic fragility.

Mitigation: Implementing employee financial wellness programs (e.g., budgeting support, debt management, emergency funds) can reduce stress and improve productivity, benefiting the broader economy. If helpful, tools like October offer digital group sessions, assessments, and content to support these efforts.

• Strengthen income security and fair wages

  • Living wage indexed to inflation; expand EITC and Child Tax Credit.

• Make essential costs more affordable

  • Healthcare subsidies or universal coverage options; subsidies for housing and childcare.

• Alleviate student debt and expand affordable financing

  • Reforms to income-driven repayment, targeted forgiveness, lower interest rates, simpler programs.

• Build financial resilience and literacy

  • Financial education in schools and workplaces; access to coaching and safe savings tools.

• Strengthen safety nets and paid time off

  • Robust unemployment benefits; paid sick leave and paid family leave.

• Pair financial wellness policies with mental health support

  • Provide accessible mental health resources; partner with services like October for digital group sessions and content.

• Financial education and planning resources: offer retirement planning seminars (401(k) options and investments), budgeting tools, and debt-management guides accessible via the employee portal.

• Access to financial counseling and mental health support: provide EAP-based financial coaching and stress-management content; consider adding October’s digital group sessions on financial stress and resilience.

• Emergency savings and debt relief options: sponsor an emergency savings account or no-interest loans, hardship programs, and student loan repayment assistance where feasible.

• Payroll and benefits design to reduce money stress: automatic 401(k) enrollment with employer match and escalating contributions, transparent pay structures, student loan repayment support, and small-dollar payroll advances with clear repayment terms.

• Culture, communication, and manager support: train managers to recognize financial stress signs and refer employees to resources; encourage paid time for financial planning; maintain a easy-to-use financial wellness hub and regular check-ins.