by Judith Cohart, President Personal Finance Employee Education Foundation (PFEEF)
Just completed research from the non-profit Personal Finance Employee Education Foundation™ reveals that as many as 32% of Americans may be seriously in debt. This severe level of financial stress not only impacts their productivity at work, but also may cause them to develop health concerns.
The new research re-validates the Personal Financial Wellness Scale™. Previously the PFW Scale™ was validated in 2004. The scale, which measures financial well-being determined that the number of those most at risk remains substantial at 32% although only up slightly from 30% previously. However, for those who were just getting by, the numbers increased 16 percentage points from 28% in 2004 to 44% in 2012. In contrast, those Americans with little financial stress decreased by 18 percentage points from 42% in the previous survey to 24% in the recent one.
This research is an example of the commitment of the Personal Finance Employee Education Foundation™ to offering quality tools and resources for the advancement of financial wellness in the workplace. It was developed by a team of national scholars over a period of several years culminating in its validation in 2004.
Completing the easy to use 8 question Personal Financial Wellness Scale™, enables people to determine how they feel about their current financial situation, and whether it needs improvement.
The PFW Scale™ is a simple yet reliable instrument that the Personal Finance Employee Education Foundation™ offers to employers, financial education providers, financial advisors, counselors, and researchers to gauge financial wellness and its impact on worker productivity. Addressing employee financial wellness has shown results that include improvement in workplace productivity, employee morale, and company loyalty while reducing absenteeism, turnover, and workplace distractions across the company. These factors also contribute to the employer’s bottom line.
The Personal Finance Employee Education Foundation™ can also provide customized research that shows how these concerns impact an individual organization. Finally, the foundation has the capability to examine other factors, such as contributions to a 401(k) plan.
According to President Judith Cohart, “Our goal is to demonstrate the value of educating employees and clients about how to handle their finances. When people are financially competent, everyone benefits.”
The foundation is available to work with your organization. The mission of the Personal Finance Employee Education Foundation™ is to promote and facilitate financial education in the workplace. You may contact them at their website.
Personal Finance Employee Education Foundation
1940 Duke Street, Suite 200
Alexandria, VA 22314