Financial Literacy

White Bear Group is committed to improving the personal financial literacy of our clients and their employees. By developing multi-level educational interventions with our financial literacy partners, WBG provides a way to effect the financial literacy of the employees we serve. We believe that by improving basic financial knowledge, we can make employees better healthcare consumers and more productive employees.

"In today's complex financial markets, financial education is central to helping consumers make better decisions for themselves and their families." - Ben S. Bernanke

According to numerous studies, workers' financial problems can also contribute to higher employer health care costs. Workers cite financial problems as their most frequent cause of stress, and 75 to 90 percent of doctor visits are related to stress. Employees' hypertension, insomnia, tension, anxiety, depression, headaches, abdominal and digestive problems, ulcers, fatigue, and substance abuse are all stress-related. Workers who are financially stressed are more likely to turn to drinking, smoking, overeating and other unhealthy coping behaviors. Alcohol and drug abuse alone may cost employers up to 10 percent of payroll costs.

The American Institute of Stress estimates that 60 to 80 percent of on-the-job accidents are stress related. Those accidents can lead to increased disability and workers compensation claims, and exposure to liability, in addition to increased absenteeism and lost productivity.

Financial illiteracy results in poor benefits utilization and lack of retirement readiness. A recent report by Hewitt Associates revealed that only one in eight employers believe their employees understand the retirement benefits their company has provided and that employees are adequately planning for their retirement. In 2006, research by Dr. E. Thomas Garman and other researchers found that employers can expect $450 in positive job outcomes and $300 in lower health care costs for each employee who improves his or her financial behaviors and financial well-being. They estimated that mid- and large-size employers might realize additional savings of $2,000 for improving employee financial literacy.

Educating a workforce is a long-term commitment and is not accomplished in one meeting - or even one year. An effective financial education program is an ongoing series of educational offerings that should begin at a new employee's orientation and continue through to eventual retirement.