How to Talk to Employees about Financial Goals

It’s easy to feel overwhelmed by financial planning. According to a recent survey by T. Rowe Price, 18% of workers avoid dealing with their financial situation because it is out of control; among Millennials, the number bumps up to 25%. This alarming datapoint highlights the need for open and thoughtful discussions around employees’ personal finance challenges.

Retiremap believes that focusing on financial goals appeals to what employees really want to do with their money and motivates them to take meaningful action. Here are some tips for talking to employees about their top financial goals:

  1. Saving for Retirement
    • Remind employees about saving plans at work and outside of work
    • Discuss the basics: A) How to Save, B) How Much to Save,  C) When to Save, and D) How to Invest
    • Remind them to start saving for retirement now and to contribute as much as they can
  2. Eliminating Debt
    • Understand what kind of debt they are most concerned with, where they are in their lives, and their other financial goals
    • Help them understand the relative cost of debt and help them target accordingly
    • Acknowledge that some employees may not be able to pay
  3. Buying a Home
    • Remind them of key considerations, such as how long they will live there, school districts, and additional costs
    • Go over different property types and non-financial factors
  4. Investing Better
    • Go over common investing myths
    • Stick to common best practices depending on their needs, instead of getting bogged down by the details of their financial situation
  5. Creating an Emergency Fund
    • Remind them that an emergency fund is different from setting aside money for a major purchase
    • Encourage them to contribute money to an emergency fund regularly until they reach a sizable cushion

Employees in the most need of guidance are often the ones who push off thinking about their finances. Start the new year off right by helping them create a financial plan and achieve their goals.