When you boil it down, people have two uses for money:
Security: To pay for things that let them and their family survive.
Freedom of choice: To pay for things that let them and their family live the life they want
You can't have freedom without security. Financial wellbeing is the endpoint of the four-step journey that takes employees through securing their today and tomorrow and then unlocking the freedom to choose the life they want to live.
Everyone has a different financial wellbeing journey ahead of them. As a business you want to make sure you support people at every stage:
Stage 1: Control over our finances
It's important to understand where our money goes each month and, more importantly, the reasons behind why we spend the way we do. Forming healthy money habits – such as conscious spending – allows us to take control of our finances.
Stage 2: Capacity to absorb shock
Setting up emergency funds means that we are financially prepared for the unexpected. This offers both financial security and peace of mind, with the knowledge that we are financially secure should something happen to us or our families.
Stage 3: Financial freedom to make choices to enjoy life
Achieving our financial goals means understanding the changes we have to make now to get there. These small changes help us reach the dreams we have for our futures, whilst still giving us financial freedom to enjoy today.
Stage 4: On track to meet our goals
Not everything in life goes according to plan. When circumstances change, we need to be ready to need to reassess, adapt, and get back on track. Making informed trade-offs about what to do with our money is a key part of being able to make the best of the unpredictable.