Integrity Ideas are practical actions toward implementing a bigger WHY for the organization.  We believe some are critical (and necessary) steps in the RENEW/RE-ALIGN/RE-IMAGINE/RESTORE process.  Others are just ideas to be considered if they feel like a good fit based on what leaders prayerfully discern is best for stewarding the organization toward its WHY.

“Foster Financial Fitness” is about employee benefits, and we believe employee benefits usually fall into the “if it’s a good fit” category.

Integrity Ideas are specific actions a leader can consider during the Re-Align step of Integriosity^®–actions that will begin to Re-Align the organization with Biblical beliefs, principles and priorities.  You can find more Integrity Ideas at Integrous | Integrity Ideas (integriosity.com)

INTEGRITY IDEA: Foster Financial Fitness

We thought we had completed the wellness theme with our three posts on “Fortify Fitness”, “Nurture Nutrition“, and “Waken Wellness”, but a reader helpfully and correctly pointed out that financial wellness deserved separate treatment–thank you John Thorman!

“Foster Financial Fitness” is about adopting practices and benefits that are specifically designed to encourage and support the financial literacy and fitness of employees and their families.

It is wise stewardship and one way to lead with faithful integrity toward Biblical flourishing by curating and reinforcing a caring and compassionate organizational culture that aligns with Biblical beliefs, principles and priorities, wanting employees to flourish because you want to love them as “neighbors” and not just because having “well” employees is good for the bottom-line.

For an organization pursuing faithful integrity in alignment with Biblical beliefs, principles and priorities, we believe “Foster Financial Fitness” also includes practices and benefits that encourage and support financial generosity.

Financial Fitness and Flourishing

An organization pursuing faithful integrity through business a better way toward Biblical flourishing should care about the financial fitness of its employees, because financial and material stability, as well as the aspects of wellness it can affect (e.g., physical health, mental health, and close social relationships) are key components of human flourishing.

“Financial and Material Stability” is one of the six key domains identified and measured by the Harvard Program on Human Flourishing in their human flourishing index.

We believe financial instability can also impact domain 2–“Physical and Mental Health”, domain 1–“Happiness and Life Satisfaction”, and domain 5–“Close Social Relationships”.

The two questions asked in assessing “Financial and Material Stability” for the Harvard Flourishing Index are:

• How often do you worry about being able to meet normal monthly living expenses?

• How often do you worry about safety, food, or housing?

Financial Illiteracy and Instability

“Foster Financial Fitness” recognizes that financial instability, difficulties and stress can negatively impact the physical and mental health of employees and their families, as well as the work performance of employees.  Financial stress can also put a strain on relationships, particularly marriages (which impacts children).

Henry David Thoreau is reported to have said “Almost any man knows how to earn money, but not one in a million knows how to spend it.”  Much more recently, Alan Greenspan asserted “The number one problem in today’s generation and economy is the lack of financial literacy.”

Earlier this year, Moneyzine published some eye-opening statistics about financial literacy (and illiteracy) in America:

• The percentage of US adults with poor financial literacy increased from 20% in 2017 to 25% in 2023.

• Gen Z and Gen Y have the lowest financial literacy rates among US generations, at 38% and 45% correct answers, respectively.

• There’s a gender gap in financial literacy, with 62% of US adult males exhibiting financial literacy compared to 52% of females.

• Financial literacy is correlated with income, as only 28% of Americans earning less than $25,000 per year are financially literate.

• According to the National Financial Educators Council, the lack of financial literacy cost Americans an estimated total of $388 billion in 2023.

• Individuals with very low levels of financial literacy are seven times more likely to spend 20 hours or more per week dealing with personal finance-related issues.

Financial illiteracy leads to financial stress, which in turn can lead to declines in physical and mental health of the employee and their family.  The PwC 2023 Employee Financial Wellness Survey found:

• 60% of full-time employees report being stressed about their finances, and 57% of employees identify finances as the top cause of stress in their lives.

• 47% of employees earning more than $100,000/year are stressed about their finances.

• Employees report that financial stress and money worries have had a negative impact on sleep (56%), mental health (55%), self-esteem (50%), physical health (44%) and relationships at home (40%).

• 28% of full-time employees report running out of money between paychecks often or almost always.

It is important to note that while financial literacy may be correlated to income level, financial stress and instability impacts people at even higher income levels.  Sadly, people often live to their means, increasing their lifestyle to match increased income.

The American culture of achievement and the American marketing message of “more and bigger” can put tremendous pressure on people to “fit in” or “keep up with the Jones’s”–the new car, the boat, the bigger house, the vacation house, the private schools, the country club, the season tickets, the dream vacations or the programs for children.  Social media amplifies the need to “keep up” by expanding our universe of “Jones’s” from our neighbors to everyone we ever knew from high school, college and beyond.

A study by GOBanking Rates found that “49% of Americans live paycheck to paycheck throughout the year, with an additional 22% living paycheck to paycheck at least part of the year.” That survey also concluded that 36% of Americans have $100 or less in savings and 50% have less than $500.

According to a study by Ramsey Solutions, “money fights are the second leading cause of divorce, behind infidelity.”  The Ramsey Solutions study also found:

• Almost half of couples with $50,000 or more in consumer debt say money is a top reason for arguments.

• Almost half (47 percent) of respondents with consumer debt say their level of debt creates stress and anxiety.

An article published by the American Psychological Association titled “Managing stress for a healthy family” describes the impact of financial stress on children:

[F]inancial worries can have a devastating long-term impact on the younger members of a household. When times get tough financially, research shows, families can enter a downward spiral. Economic difficulties, such as being unable to pay bills or having to move in with relatives, cause parents’ stress to increase. Parents may then take their frustration out on their children or withdraw altogether. Without parental support, children act out or do poorly in school, setting them up for economic trouble in adulthood.

Financial stress also impacts employer productivity and loyalty.  The PWC report found:

• 56% of employees who reported being financially stressed spend three or more hours per week at work “dealing with or thinking about” personal finance issues.

• Financially stressed employees are more likely to leave their job, with 73% of employees who reported being financially stressed saying they would be attracted to another employer “that cares more about their financial well-being”.

The Bible is clear about the need for financial literacy and the consequences of debt:

For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? (Luke 14:28)

The rich rules over the poor, and the borrower is the slave of the lender. (Proverbs 22:7)

Be not one of those who give pledges, who put up security for debts. If you have nothing with which to pay, why should your bed be taken from under you? (Proverbs 22:26-27

One who lacks sense gives a pledge and puts up security in the presence of his neighbor. (Proverbs 17:18)

Financial Generosity

In post #227 (Integrity Idea 051: Energize External Generosity), we devoted the entire post to the topic of encouraging and supporting generosity, including financial generosity, by employees.

The centrality of generosity to leading and living in alignment with Biblical beliefs, principles and priorities hardly needs to be proven.

Encouraging and supporting financial generosity also provides an opportunity to talk about God as provider and good stewardship of what God provides.

CONTINUUM: Practices

The Integriosity model organizes “heart change” along six Covert-Overt Continuums.  There is nothing magic about these categories, but we believe they are helpful in thinking about practical execution of a Re-Imagined Purpose, Re-Imagined Values and a Re-Imagined Culture.  The Continuums are Prayer, Proclamation, Policies, Practices, Products, People.

Each Continuum represents an area in which leaders can begin to think about, plan and institute Re-Alignment changes to the heart of the organization.

“Foster Financial Fitness” is on the Practices Continuum.  It involves practices the organization can adopt to affirm its commitment to Biblical flourishing and the Biblical principles of Imago Dei and love your neighbor, to reflect and reinforce its purpose and values, to care for its employees, to prioritize relationships and community, and to be wise stewards of the organization.

COVERT-OVERT RATING: Highly Covert

The Integriosity model breaks the Covert-Overt Continuums into six gradations–from Highly Covert to Highly Overt–that we believe are helpful in beginning to pray and think about what is most appropriate for an organization at a particular moment in time.

Most Integrity Ideas will have one place on the scale.  Some can vary depending on how they are implemented.  In one sense, “Foster Financial Fitness” can be Highly Covert (an action that would be taken by a secular company).  Even secular businesses should care about the financial literacy and wellness of their employees, if only from the Profit as Purpose “bottom-line” perspective of lower healthcare costs, less sick-time and higher productivity.

“Foster Financial Fitness” can also be Overt (An overtly faith-based action known generally within the organization) if the leaders of the organization choose to explain its importance in terms of the Biblical significance of treating people with dignity as creations in the image of God, loving your neighbor, and limiting or eliminating debt.

STAKEHOLDERS SERVED: Employees

When we categorize faith-based actions, we also consider the stakeholders principally impacted by the action: Employees, Customers/Clients, Owners, Suppliers/Vendors, Community and Kingdom.

“Foster Financial Fitness” principally serves Employees and their families by caring for their well-being.  It also benefits Owners through wise stewardship and the Community through healthier members.

IMPLEMENTATION

Like physical fitness or nutrition, “Foster Financial Fitness” isn’t difficult to justify in concept once you understand the reality of financial illiteracy and instability in America, particularly for organizations in industries where employees are living paycheck-to-paycheck.  It may be more difficult to understand in industries where employees are earning over $100,000/year, but the statistics and surveys suggest financial illiteracy and instability can be issues at all income levels.

Every faithful leader seeking to lead with faithful integrity through business a better way toward Biblical flourishing should want to help those employees God has given them to steward to be financially fit.  But how?

We believe the first step (which should be the first step in any initiative) is for faithful leaders to understand and pray–understand the financial reality of the people in their care and then pray about how God wants them to help their employees and their families.

At first, it may be difficult for owners or executives of a business to understand the financial stress of someone who could not pay an unexpected $400 expense because.  In fact, it may be hard for them to even imagine being in such a situation.  Even the inability to sympathize does not relieve us from the need to empathize.  It is the first step toward loving your neighbor and living the Golden Rule.

We believe options for implementing “Foster Financial Fitness” can be broken down into three basic categories–education, support, and savings programs.  What is the right fit for an organization will depend on many factors, such as the number of employees, the nature of the industry, and the realistic budget for “Foster Financial Fitness”.

Like with all Integrity Ideas, implementation should only be done after prayerful discernment by faithful leaders.  Here are a few examples and ideas for faithful leaders considering implementing “Foster Financial Fitness”.  Many of these ideas can be implemented through integrated financial wellness tools such as the SmartDollar financial wellness program offered by Ramsey Solutions.

For an organization seeking to address wellness holistically, one option to explore is Storehouse Wellness.  They have developed a Christ-Centered comprehensive wellness solution for organizations that encompasses nourishment, physical fitness, mental awareness, and financial health.

Education.

Educating employees and their families about financial could come in many forms.  For example:

• Materials about financial matters–budgeting, debt management, saving (including health savings), investing, insurance, retirement planning, estate planning.  This could be materials such as written materials (e.g., books, brochures), intranet resources, or a periodic newsletter.

•  Lunch seminars on various financial matters by financial planners.

• Information tables hosted periodically by financial professionals or a dedicated financial fitness fair.

• In-person or virtual workshops with a financial professional.

• Links to videos about financial matters.

Financial literacy of future generations can be positively impacted by making available to families resources such as the new book Braving Our Savings by Sarah Samuels, which is a children’s book about investing designed to begin financial literacy at a young age.

Support

Support for financial fitness is going beyond group education and providing individualized help for employees who wish to participate. This could take the form of:

• Providing (or subsidizing the cost of) individualized financial planning, retirement planning, or estate planning sessions.

• Providing (or subsidizing the cost of) a budgeting and expense tracking app.

• Paying for (or subsidizing the cost of) debt management coaching.

• Arranging for a financial coach to be available on a periodic basis for personal consultations.

• Creating and funding a “rainy day” fund to assist employees with unexpected expenses.  We dedicated post #131 (Integrity Idea 005: Fund an Employee Fund) to this option.

Savings Programs

The most direct way to “Foster Financial Fitness” is to provide employees with programs that reward savings.  Here are a few examples of how this might be implemented:

• Provide a retirement savings plan (such as a 401(K) plan) with employer matching contributions.

• Create an Employee Stock Ownership Plan.

• Provide employer contributions to employee HSA accounts.

• Provide safety net insurance, such as disability and life.

• Provide an optional savings program with automatic payroll deductions.

• Provide an employee discount program, such as Access Perks or Perks at Work, for employees to receive discounts on purchases.

• Undertake an initiative to “optimize compensation”, as detailed in post #174 (Integrity Idea 024: Optimize Compensation), which involves reviewing the compensation of all levels of employees (including the ratios between the most highly compensated employees and the median compensation of employees) and prayerfully considering whether the maximization of flourishing and good stewardship of the organization require adjustments.

We believe faithful leaders implementing some form of “Foster Financial Fitness”–whether education, support or savings programs–should give prayerful, careful and serious consideration to taking the next step and explaining the Biblical motivation for these benefits, both from the perspective of the organization and the perspective of the employees.

For the organization, “Foster Financial Fitness” is part of pursuing faithful integrity through business a better way toward Biblical flourishing.  It is: recognizing Imago Dei; living out the commandment to love your neighbor; reinforcing an organizational culture that prioritizes relationships, community, and the flourishing of its people; and wise stewardship of the organization and its people.

PERSONAL NOTE (from PM):  Even as a graduate of Harvard College and Harvard Law School, I was financial illiterate when it came to investing.  I was earning a very comfortable income as a Wall Street lawyer and for many years my savings were almost entirely in Money Market Accounts (which actually paid interest back then) until I became a partner and hired a financial advisor.  It wasn’t that I didn’t understand investments or finance–it was a fear of risk.  If I had a copy of Sarah Samuel’s book back then, I would have read the second of the “two important things” she teaches her daughters Holland and London right up front:

You have to brave your savings.  Investors have to be brave . . . .  When you brave your savings, you take a risk, do hard work like researching companies, and invest in things you believe in.

On a separate note, I witnessed financial stress at even the highest levels of income because our culture encourages living to our means–keeping up with the person next door.   I remember hearing a story of one of the partners in the law firm where I worked lamenting to an associate who had just purchased a new set of golf clubs that the partner wished he could afford a new set of clubs.  He was earning well over a $1,000,000/yr but was living “distribution to distribution”.   Following the 2008 financial crisis, a friend who advised ultra-high-net-worth individuals shared the story of a client who called in great financial distress because he needed to trim his personal monthly “burn rate” from $5,000,000 to $3,000,000.  It is hard to feel sorry for this person, but financial stress is relative.

In the interest of full disclosure, Sarah Samuels, author of Braving Our Savings, is my sister-in-law.

ESSENCE:  Integrity Ideas are specific practical actions a faithful leader can consider in leading faithfully through business a better way.

INTEGRITY IDEA: Foster Financial Fitness

COVERT-OVERT CONTINUUM (six Continuums for action):  Practices

COVERT-OVERT RATING (several levels from Highly Covert to Highly Overt): Highly Covert

STAKEHOLDERS SERVED: Employees

“Foster Financial Fitness” is about adopting practices and benefits that are specifically designed to encourage and support the financial literacy and fitness of employees and their families. It recognizes that financial instability, difficulties and stress can negatively impact the physical and mental health of employees and their families, as well as the work performance of employees.  Financial stress can also put a strain on relationships, particularly marriages (which impacts children). An organization pursuing faithful integrity through business a better way toward Biblical flourishing should care about the financial fitness of its employees, because financial and material stability, as well as the aspects of wellness it can affect (e.g., physical health, mental health, and close social relationships) are key components of human flourishing. Whether through education, support services, financial tools or other benefit programs, “Foster Financial Fitness” is also wise stewardship and one way to lead faithfully by curating and reinforcing a caring and compassionate organizational culture that aligns with Biblical beliefs, principles and priorities, wanting employees to flourish because you want to love them as “neighbors” and not just because having “well” employees is good for the bottom-line.

Copyright © 2024 Integrous LLC.  Integriosity is a registered Service Mark of Integrous LLC.

Photo credit: Original image by Esperanza Doronila on Unsplash
(photo cropped)