A recent BankRate.com YouGov survey shows that 42% of Americans cited money concerns as having a negative impact on their mental health.
While 42% of Americans link money concerns to harming their mental health, another YouGov survey shows that 62% of Americans are either somewhat or very anxious regarding their personal finances. Why might that be?
Most Americans lack a financial safety net.
One of the most critical concerns, especially in today's financial climate, is people's ability to cover unexpected expenses. Ask yourself - could you handle a $500 unexpected expense and still have enough money to cover your monthly expenses? This was a major concern for 57% of those surveyed in the BankRate study. It's been long thought that having a financial safety net provides people with a sense of security and positivity. These two studies prove that.
Key findings of the surveys.
68% of respondents thought saving is the best thing for them to do with their money right now.
48% of millennials (ages 26 to 41) are psychologically impacted by financial concerns, followed by Gen Xers (ages 42-57) at 46% and Gen Z (ages 18-25) at 40%.
28% of those surveyed said they worry about money on a daily basis.
How can an Emergency Savings Account (ESA) help?
By putting away a small amount of each paycheck or depositing a small amount each week, that safety net can start to grow over time. When those deposits are made directly from your paycheck, your employees often won't miss them. Mark Hamrick, senior economic analyst, Washington Bureau Cheif for BankRate, says, "If we can effectively prioritize emergency savings along with other financial goals, it may pay a double-edged dividend of both financial and mental well-being."
Let Xiggit provide your employees with a sense of financial security.
At Xiggit, we offer an Emergency Savings Account that helps your employees build that financial safety net. If an employee contributes just 5% of their paycheck (just $5 for every $100 earned) to their Savings Account, that money will begin to grow quickly. That money can then be used for those worrisome expenses - an unexpected emergency, a large purchase, or even an expected larger bill (like car insurance).
Are you ready to help your employees improve their financial mental health? Talk to one of our experts today to see how Xiggit can help you and your employees.