Inflation has fallen dramatically over the past two years. While the current rate of 3.3% at the time of this writing is higher than the Fed’s goal of 2.0%, it’s a far cry from the 7% of December 2021.* While the recent drop is good news for many, with high gas prices and the continued climb of housing costs (up 5.4% over the previous year) and medical care, it’s little wonder many people are feeling stressed about their finances.** Research has found that 80% of workers report feeling financially stressed. With 27% experiencing “high or overwhelming” stress.†
So, how do you relieve financial stress? You may think the cure is to make more money. While this may be true if you receive a significant jump in pay, for most people, a modest raise or cost of living increase does little to relieve financial stress or the feeling of treading water. If you’ve decided the only way to increase your salary is to find a new employer, here are a few things to consider.
There’s more to a new job than the salary.
Yes, making more money is a good thing. But what benefits does the new employer offer? If they offer medical, dental, or vision care, how do those monthly premiums and deductibles compare to what you have now? If the new job offers a higher salary, but the health care premiums are more than the pay increase, are you gaining or just changing the focus of your financial stress? When it’s appropriate during the hiring process (usually after you’ve received an offer), find out the cost of health benefits. If the person making the offer doesn’t know the answer, ask to be connected to someone in human resources.
Here’s another benefit to consider when looking for a new employer. Ask if they provide a financial education program. While most employers offer a 401(k)––an important part of any long-term retirement plan––most 401(k) plans and plan administrators do little to help you build a foundation of financial literacy that impacts your daily life, such as money management, budgeting, building credit, debt management, and more.
A good financial education program should not only offer basic educational materials, but these materials should relate to your needs and circumstances and go beyond one-size-fits-all. Managing money is effectively a state of mind. The training must be easy for you to internalize and relate to your life, reducing stress and helping you become more confident in your financial well-being and outlook.
Can’t I educate myself?
Yes! There are plenty of books, videos, and podcasts covering financial education. And most offer time-tested guidance. However, they lack personal attention. You can call in to a podcast, but what are the chances you’ll get on-air? Are you comfortable sharing your financial issues and stress with an audience that could number in the millions? App-based programs are another cost-effective solution, with numerous programs available online. However, many are solely self-learning or supported by AI. The potential disadvantage of this technology is it tends to be impersonal, without the one-on-one guidance, empathy, and motivation that comes with a human connection or understanding of your specific circumstances. Also, you’re limited to the educational topics and options they provide – which under some circumstances can be limiting.
We’re here to help!
Our mission is to help our Members live their best financial lives. A key part of this is financial education, which can reduce stress. You may not know this, but we offer education and counseling tailored to your needs. Plus, it’s free. Ready to up your financial savvy? Here are three ways to start.
- Take our Financial Wellness Check. After you answer a few questions, it only takes a few minutes, we’ll contact you shortly after that with a personalized Financial Plan to help you grow wealth more efficiently, avoid financial pitfalls, and keep you moving toward financial freedom.
- Our Financial Education Center is an easy way to move to financial literacy. There are informative videos covering everything from budgeting to savings to credit scores, and more.
- Make an appointment with one of our CUNA Certified Financial Counselors. There’s no charge for our services. We never try to sell you anything, and unlike brokerage firms, we make no commission.
Final thoughts.
Improving your financial knowledge helps you save money and reduce financial stress. A recent study found that Americans who lack knowledge about personal finances lose an average of $1,819 annually. That’s $18,190 over ten years.‡ That money could have gone to paying bills, lowering debt, paying for education, vacations, or going toward retirement. Take the first small step to financial wellness with the Financial Wellness Check, watch a video, or contact one of our financial counselors today. If you’re feeling financially stressed, imagine how much better you’ll feel.
*US Inflation Calculator, “Current US Inflation Rates: 2000-2024,” Accessed 18 June 2024.
**Morrow, Allison, “Housing Costs Are Clouding An Otherwise Glowing Economy,” CNN.com. 13 June 2024. Accessed 18 June 2024.
†Thakor, Manisha, “It’s Time to Prioritize Employees’ Financial Health,” HBR.org. 2 January 2024. Accessed 18 June 2024.
‡Collins, Jason, “Financial Literacy Fall Behind, as Stress Over Managing Living Expenses Increases,” Civicscience.com. 6 February 2024. Accessed 18 June 2024.
