eMoney believes the impact of Covid-19 has given financial
professionals an opportunity to implement financial wellness programs.
As in many previous studies, the financial planning fintech
found high levels of financial stress in its own survey of 2,000 Americans.
More than two-thirds of its respondents reported feeling stress due to
financial health problems, versus about half of respondents feeling stress due
to either physical or mental health problems.
This stress is directly pandemic related in most cases, as
62% of respondents reported that the pandemic has worsened their financial
situations.
As a result of this stress, the respondents were more likely
to adopt a short-term financial focus on issues like paying day-to-day bills
versus planning for retirement or saving for other long-term goals.
To that end, eMoney earlier this year launched Incentive, a
self-led financial planning and wellness application. It also, in conjunction
with the release of its study, announced a new partnership with FinLit Tech
founder and financial literacy advocate Mac Gardner.
“Mac’s expertise and passion for financial literacy are
welcome additions to the team,” said Celeste Revelli, director of financial
planning at eMoney, in released comments. “As our survey results indicate,
there’s a dire need for financial wellness in this country. ... eMoney's vision
of ‘financial peace of mind for all’ has been our North Star as we work to
address the needs of people across the wealth spectrum.”
Gardner will serve as both a consultant and brand ambassador
for eMoney, emphasizing the importance of financial wellness to the overall
industry.
While financial stress led the eMoney study respondents to
seek financial advice, a greater proportion of them have sought advice from
friends and family (47%) or their employer (42%) than have consulted a
financial professional (28%).
Yet, the same respondents indicated that their largest
impediment to achieving financial wellbeing is an inability to get or find
reliable, sound financial advice. The respondents were also most likely to
define financial wellness as financial security as a result of sufficient
income and manageable expenses.
eMoney said it interpreted the results as a clear call for
workplace financial wellness programs.
“The fact that people feel they don’t have access to
financial advice points to a real opportunity for financial advisors. Tearing
down the barriers to provide that access is the first step in reaching people
who say they would welcome the chance to create a plan,” wrote the study’s
authors.
eMoney also hinted at more financial wellness initiatives
coming later this year, including a financial wellness series starting in
April, which is financial literacy month.
eMoney sponsored a survey of a nationally representative
sample of 2,000 Americans in December.
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