The Missing Piece: Why Your 401(k) and Bank Aren't Enough for True Employee Financial Wellness

By Mrs. Shay Cook, CEO & Founder of Crusaders for Change, LLC (C4C) Accredited Financial Counselor® & Financial Fitness Coach®

You Can’t Bank on Benefits Alone: Why Employees Need Financial Education

As businesses increasingly recognize the critical link between employee well-being and productivity, comprehensive benefits packages have become a cornerstone of attracting and retaining top talent. Often, these packages include valuable resources like 401(k) plans and partnerships with banks or credit unions. But while these offerings play a vital role, they often fall short of providing the holistic financial wellness support your employees truly need. According to LendingClub’s report, as of January 2023, 60% of United States adults, including more than four in 10 high-income consumers, live paycheck to paycheck. The shocking truth is that traditional benefits aren’t cutting financial stress (and we know that financial stress leads to a less productive workforce)… so what is the answer?

Your 401(k) Won’t Fix a Maxed-Out Credit Card

During a recent sales effectiveness training, a sharp question from a Certified Financial Planner perfectly encapsulated this gap: "What's the difference between what 401(k)s and Banks/Credit Unions provide to organizations versus what Crusaders for Change offers?" It's a valid question, and the answer highlights a crucial distinction in approach and ultimate goals. Let’s explore the differences.

The 401(k) Focus: Retirement Planning, Not Holistic Wellness

Let's be clear: 401(k) providers, Financial planners, and financial advisors offer an invaluable service. They are essential for helping employees plan and save for their long-term retirement goals. They provide the infrastructure, investment options, and often some level of educational resources focused specifically on retirement planning. However, their primary focus is, understandably, on the accumulation of retirement funds. 

Retirement Planning Is Great—If You Can Afford Rent This Month

Employees need more than long-term savings—they need help managing debt, budgeting, and day-to-day money stress. While some financial firms might offer webinars or online tools, these are typically centered around investment strategies, contribution rates, and understanding market fluctuations. What's often missing is the broader context of an employee's current financial landscape.

Think about it: an employee struggling with overwhelming debt, living paycheck to paycheck, or lacking basic budgeting skills will find it challenging to prioritize retirement savings, no matter how robust the 401(k) plan. Furthermore, 401(k) providers rarely offer personalized financial counseling to help employees navigate these immediate challenges. Their information, while helpful, often resides within company intranets or requires proactive employee initiative to access and understand.

Banks and Credit Unions: Serving Their Core Business

Similarly, banks and credit unions play a vital role in the financial lives of individuals and organizations. Many are increasingly involved in community outreach and offer financial literacy programs. This is commendable and contributes to a more financially informed public.

However, at their core, banks and credit unions are businesses with specific objectives. Their ultimate goal is often to acquire new customers, open accounts, offer loans, and promote their various financial products. While their educational initiatives may be well-intentioned, there's an inherent potential for these offerings to subtly (or not so subtly) steer employees towards their products and services.

Free Checking Is Nice. Real Financial Wellness Is Better.

Imagine an employee attending a bank-sponsored workshop on debt management, only to be subsequently offered a balance transfer credit card. While the product may or may not be helpful, the underlying motivation differs from a truly objective and unbiased approach to financial well-being. Partnerships with credit unions or banks are helpful, but they don’t address emotional money habits or financial literacy gaps.

Why Your Benefits Package Is Missing the Most Important Piece

This is where Crusaders for Change steps in. We are not a retirement plan provider, nor are we a financial institution looking to sell specific products. Our sole focus is on empowering employees to achieve holistic financial wellness.

Here's how we differ:

• Unbiased Financial Counseling and Coaching: Our Accredited Financial Counselors® (AFC®) and Financial Fitness Coaches® (FFC®) provide personalized, confidential guidance tailored to each employee's unique situation. We don't sell financial products; our goal is to equip individuals with the knowledge and strategies to make informed decisions that are right for them.

• Comprehensive Financial Education: Our workshops, seminars, and online resources cover a wide spectrum of financial topics, from budgeting and debt reduction to saving, credit building, and understanding financial goals – all designed to be engaging and actionable.

• Accessibility and Engagement: We actively engage with employees through interactive sessions, making financial education approachable and less intimidating. We work to break down the barriers and stigma often associated with discussing personal finances.

• Focus on Immediate Needs and Long-Term Goals: We understand that employees need help with their current financial challenges just as much as they need to plan for the future. Our programs address both short-term needs and long-term aspirations, creating a solid foundation for financial well-being.

• Seamless Integration and Advocacy: We work collaboratively with organizations to seamlessly integrate our programs into their existing benefits packages, advocating for employee participation and ensuring maximum impact.

Build a Stronger Workforce With More Than Just Benefits

It's crucial to emphasize that Crusaders for Change doesn't aim to replace the valuable work of 401(k) providers, CFPs/Financial Advisors, or banks and credit unions. In fact, we believe in a synergistic approach.

We can work in tandem with 401(k) providers by equipping employees with the foundational financial skills necessary to actively participate in their retirement plans. We complement the services of CFPs and Financial Advisors by providing the initial groundwork of financial literacy and stability, making employees better prepared for more in-depth financial planning. And we can partner with banks and credit unions by offering unbiased education that empowers employees to make informed decisions about the financial products that best suit their needs.

The Bottom Line: Investing in Holistic Financial Wellness

Benefits are just tools—without training, employees can’t use them to their full potential. Ultimately, investing in employee financial wellness through a dedicated partner like Crusaders for Change is an investment in your organization's most valuable asset: your people. 

By addressing the root causes of financial stress and empowering employees to take control of their financial lives, you'll foster a more engaged, productive, and resilient workforce. While 401(k)s and banks play important roles, they often lack the comprehensive, unbiased, and personalized approach needed for true financial wellness. Let's bridge that gap and empower your employees to thrive, both financially and professionally.

C4C's mission will always focus on helping people become and remain financially healthy. We have been empowering people to change their behaviors, get out of debt, improve credit, and meet their financial goals through financial counseling, coaching, and classes for over 20 years. 

C4C offers customized financial wellness programs that fit the needs of small businesses, nonprofits, corporations, local and state governments, and federal government institutions. We cater to your unique needs, empowering your workforce and elevating your organization's success.

Let’s talk about what your corporate financial wellness program could look like.