What is financial wellness software, and how does it help employee financial wellbeing?

As we approach 2024, many of us are thinking about new opportunities and goals. However, this time of year can also bring a lot of stress and anxiety. One thing that's really worrying people is the financial pressure of the new year. The holiday season is already a stressful time, and on top of that, inflation is still high and student loan repayment has returned. As a result of these financial pressures, January and February are typically the months when employees are most likely to quit their jobs in search of new opportunities.

To add insult to injury, the popular budgeting app Mint is shutting down on January 1, 2024. This has left many employees searching for a reliable and comprehensive financial tool. 

Financial wellness software enters the chat. 

Organizations have the opportunity to positively impact their employees' financial lives by offering financial wellness programs, which can include budget tracking software, access to one-on-one financial coaching, financial education, and more.

What is financial wellness software? 

Financial wellness software is designed to help employees manage and improve their financial health efficiently, safely, and in one holistic view. This software often includes budgeting, investment tracking, debt management, and financial planning tools. Rather than tracking money in disparate accounts and systems, this software gives users a comprehensive view of their financial situation, enabling them to make informed decisions about their money. 

Every financial journey is unique, and good financial wellness software should offer a range of features and services that can address various situations and needs. This includes access to certified coaches who can provide guidance and support with an empathetic approach. Providing employees with one-on-one coaches who not only provide guidance and advice but also lend an empathetic ear, makes employees feel seen and heard. The software should integrate technology and human touch to provide users with a personalized experience that meets their unique financial needs. 

Types of financial wellness software

There are many varieties of financial wellness software serving different purposes. Here is a list of some of them and what they do:

• Budgeting tools: Essential for creating and tracking personal or family budgets and managing expenses.
• Debt management software:  Helps strategize and reduce various forms of debt, such as loans and credit card balances.
• Savings and Investment Apps: Useful for automating savings, providing investment advice, and managing investment portfolios.
• Expense tracking apps: Key for monitoring daily expenses to understand better and control spending habits.
• Financial planning software: Offers comprehensive tools for long-term financial planning, including retirement and education savings.
• Tax preparation software: Simplifies the process of preparing and filing taxes, ensuring accuracy and optimization of returns.
• Credit monitoring and improvement tools: Important for monitoring credit scores and understanding how to improve credit health.
• Bill management and payment apps: Centralizes bill management and facilitates timely payments, helping avoid late fees.
• Financial wellness programs for employees: Provided by employers, these tools help employees with budgeting, saving, and financial education.
• Retirement planning tools: Specifically designed for planning retirement savings, including calculators and management of retirement funds.

These software types address different aspects of financial wellness.

However, picking the best financial wellness programs to serve your employee population successfully is essential.  Financial wellness in the workplace only works if it’s personalized to the organization’s needs. Here are some key things that we believe are essential for a high-quality financial wellness platform: 

• Blending live coaches with technology
• AI to offer insights and suggestions
• On-demand financial education
• Ability to see entire financial life in one place
• Bank-level security

To learn more about these, check out our ebook, 6 Things to Know about Your Money Line, which dives into what Your Money Line does! 

Benefits of financial wellness software

There are many benefits financial wellness programs with a software component will bring to your organization—for both employees and employers. Let’s take a look at those benefits: 

• Financial education and guidance: This software often provides educational tools and resources that help users understand financial concepts and make informed decisions. Users can learn about budgeting, investing, debt management, and more, leading to better financial literacy and confidence in handling money matters.
• Improved employee productivity and well-being:  Employers offering financial wellness programs also impact employee well-being. Financial stress can significantly affect an employee's mental health and productivity at work. Employers can foster a more focused and less stressed workforce by providing tools that help employees manage their finances effectively.
• Cost savings for employers: Implementing financial wellness software can be a cost-effective solution for employers. By improving employees' financial health, companies may see reduced costs associated with financial stress-related issues like absenteeism and healthcare expenses. Additionally, these programs can enhance employee retention and satisfaction, potentially reducing turnover and associated hiring costs.

Implementing financial wellness software in the workplace

Employers have a big opportunity regarding their employees' financial wellness. One key way to support employees is by offering financial wellness software at the workplace. Before starting, employers should consider what their employees need, what the software can offer, and how to implement it. Employers should choose software that will help the financial lives of their employees. If employees are struggling paycheck to paycheck, don’t know how to pay off student loans, and are stressed from daily life expenses, a software solution with 1:1 coaching to help with budgeting and planning is way more effective than providing resources to help with tax optimization or investing. 

Employers should prioritize creating a culture of financial wellness in the workplace. This involves promoting open communication about financial struggles, offering education and support around financial literacy, and valuing financial wellness as a whole. By doing so, employers can help their employees feel more secure and in control of their financial futures, leading to increased productivity and job satisfaction. If you want to learn more about your organization's financial wellness, take our free financial wellness audit. We'll provide recommendations and resources to improve your team's financial stability and confidence.

P.S. If you want to learn more about how Your Money Line can help, reach out to us today!