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ALEX Financial Wellness 5/28 Webinar Deck
- 1. Financial Wellness Why is it so dang hard (and how you can make it easier) presents Copyright © 2015 The Jellyvision Lab, Inc. All rights reserved. Jellyvision, the Jellyvision logo, and ALEX are registered trademarks of The Jellyvision Lab, Inc.
- 2. Hi, I’m Josh • Head of Sales and Bucket Metaphor Sharer • Has always loved his bike and rides it into work these days • Chooses hard shell tacos over soft shell
- 3. I grew up doing chores Like many of you
- 5. at some point, chores become a way to make money But then,
- 7. buckets upon buckets of pinecones to buy a bike I collected
- 8. proved to be extremely difficult Saving money
- 9. I would save up a few bucks I’d buy a pack of baseball cards Whenever
- 10. Got a job. And began receiving paychecks. (one not dependent on pinecone bucket quotas) I grew up
- 13. I got married. And then
- 14. Had kids
- 15. a whole new level of financial freak-out And discovered
- 16. Is a chore. An adult chore. But it’s not as simple as picking up pinecones, putting them in a bucket, and moving on. It’s hard, comes loaded with all kinds of history, baggage, and challenges. Managing Money
- 17. The thing about life is that it’s unpredictable. We each have our own story. Everyone of us is unique. You see…
- 18. And we’re each handed our own bucket to fill. Buckets come in all kinds of different shapes and sizes
- 19. Watch this video. Fill out this worksheet. Go to this seminar. Listen to this guru.
- 20. Hey, nice bucket! Here’s everything you need to do to fill it… Why haven’t you filled it yet?
- 21. It’s easy to see why…
- 22. 72% of adults report feeling stressed about money at least some of the time Source: APA
- 23. 1 in 4 adults report feeling stressed about money all of the time Source: APA
- 24. 62% of Americans can’t cover unexpected expenses Source: APA
- 25. $15,950Average American household credit card debt in 2012 Source: CreditCards.com
- 26. Only 18% of US workers are confident they will be financially secure in their golden years Source: http://www.fool.com/retirement/general/2015/01/10/the-typical-american-has-this-much-in-retirement-s.aspx
- 27. Financial stress manifests as… Migraines/headaches Insomnia/sleep trouble High blood pressure Stomach ulcers Muscle tension/back pain Severe anxiety Severe depression Heart attacks Source: AP-AOL Health Poll: Debt Stress: The Toll Owing Money Takes on the Body
- 28. Why is this problem so hard to solve?
- 30. Hobbits are difficult to change
- 31. Hobbits are difficult to change
- 32. Habits are difficult to change
- 33. Conflicting advice in the media…
- 34. People are afraid of looking stupid
- 35. To put people on the right path toward financial wellness Five Communication Tips
- 36. Don’t Anchor On The Past
- 37. People carry a lot of emotional baggage related to their money
- 39. Take baby steps toward the future
- 40. Source: : http://charlesduhigg.com/the-power-of-habit/ How do habits form?
- 41. Make It Real
- 43. Account balance at retirement… Estimated monthly paycheck at age 71… $500,000 $1,566 $1,000,000 $3,133 Source: : tsp.gov Retirement Calculator
- 45. Let employees access resources at home, where they feel comfortable
- 46. Words Matter
- 49. Debt management ! Improving your cash flow Upside-down mortgage ! Making your home affordable
- 50. Have A Clear Next Step
- 51. Keep it simple and leave employees with one or two action items
- 52. Short term goal: Date to achieve: ! Savings per week/month:! Medium term goal: Date to achieve: ! Savings per week/month:! Long term goal: Date to achieve: ! Savings per week/month:! Setting goals…
- 54. Sneak Peek! Check it out on YouTube: http://bit.ly/1FS9oLU
- 55. Any questions?
Editor's Notes
- Hello Everyone! I’m David Daskal, a benefits communication expert for ALEX®, and I want to welcome you to our webinar, Turn Employees into Masters of their HDHPs. Thank you so much for being here today, and an extra special thanks to Mike Frost and our friends and SHRM for hosting today. Webinar anagrams: Bear Win. Bar Wine. I’ll be sharing a lot of communication tips today, so get your pencils sharpened…. I’m going to kick this off the way all great webinars start – with some truly explosive numbers.
- Nearly three-quarters (72%) of adults report feeling stressed about money at least some of the time (APA) More than one-quarter of adults (26%) report feeling stressed about money most or all of the time (APA). 62% of Americans can't cover unexpected expenses Not having enough emergency savings for unexpected expenses is again the most frequently cited employee financial concern and less than half have emergency money set aside to withstand unexpected changes to their personal financial situation (PWC)
- Nearly three-quarters (72%) of adults report feeling stressed about money at least some of the time (APA) More than one-quarter of adults (26%) report feeling stressed about money most or all of the time (APA). 62% of Americans can't cover unexpected expenses Not having enough emergency savings for unexpected expenses is again the most frequently cited employee financial concern and less than half have emergency money set aside to withstand unexpected changes to their personal financial situation (PWC)
- Nearly three-quarters (72%) of adults report feeling stressed about money at least some of the time (APA) More than one-quarter of adults (26%) report feeling stressed about money most or all of the time (APA). 62% of Americans can't cover unexpected expenses Not having enough emergency savings for unexpected expenses is again the most frequently cited employee financial concern and less than half have emergency money set aside to withstand unexpected changes to their personal financial situation (PWC)
- People are still loaded with credit card debt. The average American household with at least one credit card has nearly $15,950 in credit-card debt (in 2012), according to CreditCards.com, and the average interest rate runs in the mid- to high teens at any given time.
- Employee Benefit Research Institute reports that only 18% of U.S. workers are confident that they'll be financially secure during their golden years. If you're one of the 82% that isn't confident, then there's no time like the present to begin making changes that could have a big impact on your retirement nest egg. And new data shows that these 18% are probably wrong too… Fidelity came out with a study that shows you need 11X your most recent salary.
- These symptoms appear in people with low and high levels of financial stress.
- Money means different things to different people…Our relationship with money is complex – there is a psychological basis for financial behavior. People project different emotions upon money – it’s unique to each person. Money is a blank screen -- we project onto it what our issues are (identity, love, power, sex, etc.) Unhealthy money attitudes • Money avoidance – people seek to distance themselves from money • Money worship – seek the status derived from the things that money can buy. • Money status – occurs when people’s self-worth is tied to their net worth • Money vigilance – when people are wary of spending
- Why are habits hard to change? Because they are automatic. Furthermore, our brains can't tell the difference between a good habit and a bad habit. We need to understand how people make financial decisions and the role that emotions and habits play.
- Why are habits hard to change? Because they are automatic. Furthermore, our brains can't tell the difference between a good habit and a bad habit. We need to understand how people make financial decisions and the role that emotions and habits play.
- Why are habits hard to change? Because they are automatic. Furthermore, our brains can't tell the difference between a good habit and a bad habit. We need to understand how people make financial decisions and the role that emotions and habits play.
- Financial advice in the media is big business – who should you listen to? (Left to Right) Dave Ramsey – financial author, radio host, television personality, and motivational speaker. His show and writings strongly focus on encouraging people to get out of debt. Suze Orman – author, financial advisor, motivational speaker, and television host. She has written several books on the topic of personal finance. Jim Cramer -- Cramer is the host of CNBC's Mad Money and promotes different stock picks and market analysis
- Survey of 2,000 adults from TradeKing Advisors, conducted in September by Harris Poll: Three in four millennials say the “prospect of speaking to a financial advisor has stopped them from investing.” In other words, they don’t want to have to talk to anyone about their money, and that’s partly because they seem to fear looking stupid or revealing how little they know about investing. While millennials seem to suffer the most from this fear, they are certainly not alone. Two in three Gen X investors also said they didn’t invest because they didn’t want to have to speak to an advisor, and 73 percent of parents with children at home said the same. Respondents also mentioned concerns about cost and trust as reasons they were hesitant to invest.
- In all your communications, then, you should look toward the future…what can employees be doing now to have a positive impact on the future? Make your recommendations specific and tangible Don’t rehash the same old ideas like “drink one less cup of coffee a day!” Instead, offer suggestions like: You’re getting a raise, congrats! My recommendation is you divert your extra income into your 401(k)
- People carry around a lot of emotional baggage related to their finances, and dwelling on the past only increases that burden. You have to understand and emphathize with the baggage your employees carry on their path toward financial wellness and help them move forward.
- In all your communications, then, you should look toward the future…what can employees be doing now to have a positive impact on the future? Make your recommendations specific and tangible Don’t rehash the same old ideas like “drink one less cup of coffee a day!” Instead, offer suggestions like: You’re getting a raise, congrats! My recommendation is you divert your extra income into your 401(k)
- http://charlesduhigg.com/how-habits-work/ If you want to change a habit, you first need to understand how they work. This diagram comes from the work of Charles Duhigg, author of The Power of Habit. MIT researchers discovered a simple neurological loop at the core of every habit, a loop that consists of three parts: Cue – something that tells us to act now; for example, a clear unambiguous signal in the environment (like smell of coffee, a ringing phone, or hunger) Routine – when you hear phone ring, you answer it; when you smell coffee, you go to Starbucks Reward – drinking the coffee (and feeling the effects of caffeine), getting money from a slot machine Over time, the cue becomes associated with the reward. We’re hardwired to build habits – they save our minds work. It’s difficult to overcome existing habits, but we can intentionally create new habits or change existing ones. It involves understanding what’s behind the habit.
- People, humans, often have a tough time wrapping their head around the future – the amount you need for retirement seems huge and it’s hard to make sense of it.
- Instead of showing them the full balance, show them what their monthly paycheck will be – something they can currently relate to. Bring it to the present moment and make it tangible. Often, when we talk about financial wellness, it’s about a distant future that feels impossible to reach but is always present.
- Whenever possible, make your resources something that employees can access at home, where they feel most comfortable and private. People may not feel comfortable raising their hand and opening up about their position in life Doing it onsite during worktime, people don’t want to hand raise And go to these things.
- Words matter. Use positive but realistic words. You don’t want to sugar coat anything, but you also don’t want to scare off employees or make them feel worse about a topic that already gives them a great deal of stress.
- Personal finance and investing are fields filled with jargon (and analysis) which can intimidate and make many people uncomfortable. Many people struggle even with “basic” financial concepts like compound interest, the difference between stock and bond, etc. Survey from National Foundation for Credit Counseling: Two in five U.S. adults gave themselves a C, D, or F on their knowledge of personal finance. Reason why: the average American doesn't have enough financial education -- or at least doesn't understand how to apply this knowledge in the real world
- Words matter – so use active verbs that let employees know what they will be able to do about their finances, not just what topics the seminar will cover. Approachability of language is key. Put it in common and usual. Take out the jargon. It’s not comfortable language. Less likely they will be stressed
- Examples in healthcare – eat a vegetable a day. Do a pushup every day. These programs work because…with your next raise. Interest rates are at an all time low, make it a priority to refinance your house – here’
- Have a next step – and have it be simple, only one or two action items.
- Build a short term goal and a long term goal, show how the two relate. Make it ridiculously easy for your employees to set the goals. And have them write it down! Writing down a goal: makes you think clearly about what you really want. Frees up room in your mind to take things to the next level Incorporates multiple learning techniques (visual, kinesthetic, auditory) And a study at Dominican University showed that people who write down their goals are significantly more likely to achieve their goals than people who do not.
- …And when your employees have mastered their HDHPs, you will feel like a total hero. A benefits communication hero. That’s got to be the coolest hero anyone ever imagined. So, without further ado, I present…