Almost three in four people (73%) feel their financial situation in 2020 had a negative or extremely negative impact on their mental health, which indicates a deficiency in financial wellness according to a new survey from eMoney Advisor.
The current COVID-19 pandemic has also emphasized a lack of financial wellness as millions of Americans navigate economic uncertainty with many in a state of stress due to their finances. eMoney defines financial wellness as “a positive state of being resulting from a healthy relationship with money and the impact it has on other aspects of life.”
Survey respondents most frequently cited financial wellness as a source of stress by a wide margin (68%), followed by physical (50%) and mental (49%) health. Relational (41%) and spiritual (41%) health rounded out the list.
The study also found almost two-thirds (61%) of respondents said COVID-19 has made their financial situation worse. Additionally, nearly a third (32%) said that not being able to find reliable and sound financial advice, as well as a lack of understanding or financial education were their biggest barriers to achieving financial wellness.
Forty-seven percent of survey respondents said they would take advantage of a financial wellness benefit from their employer compared to 29% who said they would not. And 49% said they would you like their employer to offer insight into their entire financial picture and not just retirement, compared to 31% who answered no.
“Throughout our 20-year tenure of providing financial planning technology to more than 75,000 advisors, we have always acknowledged that the benefits of a financial plan expand beyond financial gains,” said Matt Schulte, CFP, head of financial planning at eMoney. “Now, especially as the world tries to recover from a pandemic, we are committed more than ever before to helping people achieve financial wellness through quality educational resources and access to best-in-class financial tools and technology.”
New partnership with Mac Gardner
To further expand its financial wellness efforts following the launch of Incentive, eMoney’s new self-led financial planning and wellness app, the firm also announced it has formally engaged in a collaborative and consultative partnership with Mac Gardner, published author, financial literacy advocate and founder of FinLit Tech, a company focused on building the bridge between financial literacy and financial technology.
“Mac’s expertise and passion for financial literacy are welcome additions to the team,” said Celeste Revelli, CFP, director of financial planning at eMoney. “As our survey results indicate there’s a dire need for financial wellness in this country, and we want to change that. 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, and we’re excited to have Mac on-board to help us make more progress.”
Gardner, who is also a certified financial planner and holds several industry designations, will serve as both a consultant and brand ambassador for eMoney, evangelizing the importance of financial wellness to the industry and beyond through events, panel discussions, blogs and more.
“We are at a critical time when people are in need of overall financial guidance,” Gardner said. “I look forward to collaborating and sharing my professional experiences in banking, lending, insurance, retirement planning and wealth management, all of which are components of one’s financial journey. With eMoney as a partner we can build a financial wellness ecosystem that helps a wide spectrum of people seeking education and, more importantly, the tools needed to achieve financial confidence.”
eMoney has more financial wellness initiatives coming in 2021, starting with a financial wellness series in April as part of financial literacy month.