EL SEGUNDO, Calif.–Women ages 30-55 with minor children and household incomes of less than $60,000 are the most financially stressed group in the country, according to a new report.
The Financial Finesse 2015 Financial Stress Report said 55% of women fit those criteria, which is nearly two-and-a-half times the rate of 23% reported by all employees that completed a financial wellness assessment in 2014, and 40% more than similar-aged male parents in the same income group.
The report found financial stress varies dramatically based on employee demographics, but in every age group, women were more likely to report significantly higher levels of financial stress than men. Age also contributes, as do income and parenthood.
Who are the least financially stressed employees? “Twenty-six percent of men under 30 report they have no financial stress at all,” says Financial Finesse Think Tank Director and report co-author Greg Ward.
“While it’s no surprise to any working mother that juggling competing financial needs is stressful, small steps over time can create financial balance for families at any income level,” observed Liz Davidson, Financial Finesse CEO and the mother of a five-year-old.
Among those small steps: 1) building an emergency fund over time, 2) tracking expenses to find ways to save in order to pay down high-interest debt, and 3) taking full advantage of employer-sponsored benefits at work.
According to Financial Finesse, a lack of a sense of control is a primary factor for those employees reporting high or overwhelming financial stress, with 84% of those facing overwhelming stress describing their current financial situation as “not under control.”
Davidson said employers can help financially stressed employees by providing unbiased workplace financial wellness programs that offer an opportunity to learn practical money skills.
“Employers can offer workshops, webcasts, an online financial wellness center, and one-on-one financial coaching to help simplify financial complexities and help busy employees get the most out of their benefits,” she said. “A workplace-based financial wellness program saves busy parents time, and has been proven to reduce financial stress as well as create a sense of loyalty between employee and employer.”
According to Financial Finesse’s data, about two-thirds of its total users in 2014 were women. “The workplace may be an optimum place to reach women who face significant financial stress, since our study has shown that women are the most likely to utilize workplace financial wellness programs,” said report co-author Linda Robertson. “Given some of the other challenges women are facing, including a general lack of retirement preparedness, employers have a tremendous opportunity to improve the overall financial well-being of this segment of their workforce.”
According to Ward, the most notable improvements the study found were among usage of financial wellness programs by lower income groups.
In its 2014 Year in Review Research report released earlier this year, Financial Finesse noted that employees with household incomes of less than $35,000 improved in many areas of day-to-day money management, including having an emergency fund, paying off credit card balances in full, and paying bills on time. “Traditionally, reaching lower income groups has been a challenge for employers, and we see encouraging signs that employers with holistic financial wellness programs are making progress.”
The full report can be found here.