Helping your Workforce Navigate the Financial Strain of Back-to-School Season

As the back-to-school season approaches, many employees are feeling the pressure of additional expenses. For those living paycheck-to-paycheck, these costs can be particularly burdensome, causing stress that impacts both their personal lives and professional performance. Employers, too, face challenges as financial strain among employees can lead to decreased productivity and increased absenteeism.

Data shows that a significant portion of the workforce lives paycheck-to-paycheck, with little to no savings to buffer against unexpected or larger expenses. According to FinFit’s Inside the Wallets of Working Americans report, 74% of Americans report living paycheck-to-paycheck. This financial insecurity is exacerbated during periods of increased spending, such as the back-to-school season. The National Retail Federation estimates that families with children in elementary through high school plan to spend, on average, $875 per household this season. This significant expenditure can strain household budgets, particularly for those already struggling financially.

For employers, the implications are clear. Financially stressed employees are more likely to be distracted at work, take more sick days, and experience higher levels of burnout. This can lead to a decline in overall productivity and an increase in turnover rates. By understanding these challenges, employers can take proactive steps, such as exploring financial wellness benefits, to support their employees and mitigate these negative effects.

Financial wellness programs can empower employees by offering resources on budgeting and saving, access to financial counseling, and support through affordable credit options. Additionally, encouraging participation in savings programs can help employees manage expenses and build a financial cushion for unexpected costs.

Employers can help alleviate some of the financial pressures their employees face, particularly during high-cost periods like the back-to-school season. This not only improves employee wellbeing but also enhances overall workplace productivity and morale, making it a win-win for everyone.