Financial wellbeing not just about cash

AUSSIES struggling with financial wellbeing want their employers to help, though not necessarily in the form of a pay rise, research suggests.

Fintech firm Map My Plan polled a range of workers for its “Financial Stress in the Australian Workplace” paper, and found 31 per cent were worried about finances and 8 per cent were so concerned they had trouble sleeping.

Map My Plan founder Paul Feeney said financial wellbeing was not simply about having more money.

“Financial wellbeing is really about people’s ability to manage day-to-day expenses,” he said. “It also means being prepared for financial shocks, such as loss of a job or illness.”

The research found many households were unprepared, storing $1000 or less in savings.

“The average working Australian can cover three-and- a-half weeks of expenses before having to go into debt to put food on the table,” Mr Feeney said. “Interestingly, salary didn’t make that much of a difference.

“The only difference that makes people financially fitter is that they have a plan. There are people on less money that we would regard as financially super fit.”

A financial wellbeing plan can begin by taking stock and changing bad habits.

“It’s realising where I am and what I can do differently,” Mr Feeney said. “First, pay down credit card debt. The most destroying thing you can do is maintain credit card debt. There are a lot of people out there who have cash savings, but still have credit card debt.”

He said some workplaces helped by providing tools for employees, such as courses, financial advisers or information sessions with their superannuation funds.

Frollo is another firm targeting financial wellbeing, through its financial engagement app, which puts users’ bank accounts, superannuation, investments and loans together and suggests improvements.

Frollo CEO Gareth Gumbley said money is the No. 1 cause of stress in the average Australian home.

“Our philosophy is that if you improve your financial wellbeing, it will filter through to the rest of your life,” he said.