Money-related stress can lead to anxiety, high blood pressure and even death. In fact, according to a survey from the American Psychological Association, financial stress is so widespread in the United States that 64% of people report money is a “somewhat” or “very significant” source of stress for them. The level of stress is highest among millennials and Gen Xers, three-quarters of whom report feeling stressed about money matters.
Recent data from Bankrate show that financial stress affects 45% of all employees and distracts one out of five workers. That stress is often fueled by a lack of savings – 63% of Americans don't have any emergency savings to deal with serious problems, such as an unexpected car repair or a serious health issue.
“I graduated from [Michigan State University] in 2015, and the idea of paying off my student loans and trying to keep a roof over my head made me so stressed that I landed in the hospital after a panic attack,” said Kelsey Dunmore of Lansing, Mich. “After that happened, I decided to take control of my money instead of letting it control me. One place that helped me was my credit union.”
MSU Federal Credit Union, with more than $3 billion in assets, is Dunmore's financial institution, and it offers free financial education seminars throughout the year. In 2015, MSUFCU hosted nearly 300 financial educational presentations and seminars for more than 6,000 individuals — including members, students and local youth — to promote financial wellness in the community. The credit union provides a variety of events on campus to help MSU students succeed in the classroom and after graduation, including Financial U seminars and Professional Prep dinners. In addition, MSUFCU offers educational and interactive mobile apps, such as the Financial 4.0 app, to support financial education outside of the classroom setting.
Many credit unions, including the $2 billion Travis Credit Union in Vacaville, Calif., and the $266.28 million Dominion Credit Union in Richmond, Va., also offer these types of programs to their members.
In 2015, McGraw-Hill Federal Credit Union opened the Financial Wellness Center in Lower Manhattan to offer credit union members and their families a comprehensive and personalized experience focused on strengthening their financial well-being.
“Our Financial Wellness Center was created to serve members' financial needs and goals with skilled advisers and technology specifically designed to improve their financial lives,” Shawn Gilfedder, president and CEO of McGraw-Hill Federal Credit Union, said in a statement. “The Financial Wellness Center is the physical realization of our industry-changing approach. There is no location like this in New York or anywhere else in the nation; it is truly a new paradigm in providing members with financial wellness.”
Stress Advice for Employees
Financial wellness isn't only an issue for credit union members, but for credit union employees, as well. Despite the decline in the unemployment rate from 10% six years ago to 5% in March, 78% of Americans are still deeply worried about the direction of the nation's economy. In addition, 46% of employees spend an average of two to three hours a week during work hours dealing with their personal finances rather than concentrating on their job, according to a 2013 survey from online retailer Purchasing Power. In a Money Inc. survey, employees reported that financial problems are their chief cause of stress, making the need for financial wellness for credit union employees a high priority so that they can make thoughtful, informed decisions about their own situations.
“I made decent money working at a credit union, and I loved my job there, but my paycheck wasn't always enough,” said Kelly Hunter of Laguna Beach, Calif. “The only day I didn't worry was payday. I finally had to get another job that made more money, but that I don't like. Money is something everyone I know worries about.”
According to the American Medical Society, stressed people are three times more likely to have ulcers or digestive tract problems, 44% more likely to suffer migraines, 500% more likely to experience anxiety and depression, and have a 200% higher risk of a heart attack.
Because of the importance of financial wellness programs, many companies have emerged to supply them. Costs vary widely, from nothing to big bucks, and in the last few years, venture capitalists have invested more than $70 million in financial wellness providers. Some financial education seminars are free, while other one-day seminars can carry a price tag of as much as $2,000. But in the long run, credit unions that implement financial wellness programs for their members and employees find they're worth the money.
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