BOSTON, November 16, 2022–(BUSINESS WIRE)–Edelman Financial EnginesAmerica’s leading independent wealth planning and investment advisory firm,1 and the Global Financial Literacy Excellence Center at George Washington University, today released a comprehensive report that reveals how providing financial education resources in the workplace can play a role in enhancing safety and financial confidence.
Starting in April 2022, EFE has partnered with GFLEC to announce the launch and study of an innovative six-week financial education and counseling program called Fast track to financial healthwhich was rolled out to Ford Motor Company employees.* The goals of the partnership were to better understand employees’ basic financial health, provide them with valuable and targeted resources to address critical needs, and most importantly, measure the impact of this aid on improving general financial well-being.
“Financial wellness programs are one of the most important benefits employers can offer their employees. They can address important issues such as low levels of financial literacy,” said Dr. Andrea Hasler, Professor Deputy Research Fellow and Deputy Academic Director at GFLEC. “The results of our research demonstrate that the comprehensive and targeted approach Fast track to financial health program can advance financial literacy and confidence, which will help employees build a secure financial future. »
The study found that after being exposed to EFE’s financial education resources, employees improved their financial knowledge and confidence, as well as their attitudes toward retirement planning and financial decision-making. future. The report offers key insights into employees’ willingness to improve their financial behavior and shows that they are more willing to seek information or speak to a financial advisor before making important decisions in the future.
Additional key findings from the report include:
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The levels of financial literacy and well-being of Ford employees exposed to the program are higher than those of the average American adult workforce. However, the company’s most financially vulnerable employees (i.e., those with the lowest financial well-being) are middle-aged (35-54), Black Americans, and Hispanics. , with lower income and education and those who lack financial literacy.
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Even before the intervention, existing users of EFE’s services showed better financial behaviors compared to those who were not exposed to EFE’s financial education. They save more both as a precaution and for retirement; they easily make ends meet; and they are able to manage their debt well.
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Be exposed to at least part of the financial resources during the Fast track to financial health offered by EFE improved financial literacy and employee confidence. Additionally, employees who participated in the six-week challenge are more likely to make smart financial decisions in the future, such as saving for emergencies and retirement, planning for future expenses, researching information before making decisions important financial statements and request financial information. advisor’s advice.
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There is a strong link between financial literacy and satisfaction with employer benefits and compensation, as well as overall job satisfaction. Thus, offering financial wellness programs in the workplace could contribute to retention and overall employee satisfaction.
“Ford is at the forefront of improving the lives of its employees through financial wellness programs,” said Kelly O’Donnell, executive vice president at Edelman Financial Engines and head of its business. Workplace. “Working with Ford and GFLEC on this groundbreaking research has helped us identify patterns that are positively impacting employee outcomes and highlight new opportunities to better meet employee needs. More importantly, it confirms that the provision of financial assistance in the workplace improves the financial well-being of employees.
EFE and GFLEC will share more findings and insights from the research in a webinar on December 6, 2022 at 1:00 p.m. AND. Click on here to register for the event.
About the GFLEC Methodology
In order to create a benchmarking mechanism to define and measure financial well-being, the “Financial Health Score” was created. This score serves as the backbone of the Fast track to financial health program, which consists of three essential steps that 1) guide employees through an initial assessment to generate a baseline score; 2) provide personalized counseling and access to educational resources based on this score; and 3) assess the impact of this intervention with a focus on both short-term effects and anticipated future changes in financial decision-making. This work was sponsored by EFE. All results are based on data from two comprehensive surveys collected in April and June 2022.
About GFLEC
The Global Financial Literacy Excellence Center is dedicated to advancing research and solutions that open the door to universal financial literacy. By working towards this mission, GFLEC has positioned itself as the world’s leading incubator for financial literacy research, policy and solutions. GFLEC was launched in 2011 at the George Washington University School of Business in Washington, D.C. Since then, it has pioneered groundbreaking tools to measure financial literacy, developed and advised on educational programs, and crafted policy guidelines aimed at advancing financial literacy in the United States and around the world. For more information on GFLEC, visit https://gflec.org/.
About Edelman Financial Engines
Since 1986, Edelman Financial Engines has been committed to always acting in the best interests of our clients. We were founded on the belief that all investors deserve access to personalized, integrated financial planning and investment advice. Today, we are the leading independent financial planning and investment advisory firm in the United States, recognized by Barrons for five consecutive years,1 with more than 145 offices2 across the country and entrusted to more than 1.3 million clients to manage $241 billion in assets.3 Our unique approach to serving clients combines our advanced methodology and proprietary technology with the attention of a dedicated personal financial planner. Each client’s situation and goals are unique, and the powerful fusion of high-tech and high-tech enables Edelman Financial Engines to deliver the personal plan and financial confidence everyone deserves. For more information, please visit EdelmanFinancialEngines.com.
1 The Barrons The 2022 list of RIA’s Top 100 Companies, a seven-year ranking of independent consulting firms, is qualitative and quantitative, including company assets under management, technology spend, workforce diversity, succession planning and management. other measures. Companies choose to participate but do not pay to be included in the ranking. Ranking assigned each September based on data over a 12-month period. Compensation is paid for the use and dissemination of the rating. Investor experience and returns are not taken into account. The 2018 ranking refers to Edelman Financial Services, LLC, which combined its entire advisory business with Financial Engines Advisors LLC (FEA) in November 2018. For the same survey, FEA received a precombination ranking of 12th.
2 Edelman Financial Engines data, as of December 31, 2021.
3 Edelman Financial Engines data, as of June 30, 2022.
* Ford has selected Edelman Financial Engines as its service provider to make its consulting services available to Ford plan participants. Ford was not compensated for his participation in the study.
© 2022 Edelman Financial Engines, LLC. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All advisory services provided by Financial Engines Advisors LLC, a federally registered investment adviser. Results are not guaranteed. AM2558418.
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