// Script generated by Search Maker Pro: sQ1=new Array();sQ1[1]=new Array("http://www.personalfinancefoundation.org/","Personal Finance Employee Education Foundation","","Home About Us ROI Model Research Press Contact Us Mission: To promote and facilitate financial education in the workplace. The PFW Scale™, Return on Investment Calculator, the Financial Education Providers List, as well as other resources will enable employers to understand that employees who have their finances in order will be more productive. Companies providing financial education show results that include Improvement in workplace productivity, employee morale, and company loyalty while reducing absenteeism, turnover, workplace distractions, and operational risk across the company. Financial education programs have the effect of contributing hundreds of thousands of dollars each year to the company’s bottom line. The ROI generally has a return of 3:1. Click on ROI Model and use the ROI Calculator to estimate the benefits for your company. Featured Employer McLeod Health's Financial Wellness Programs Drive Bottom-line Results. More than 450 McLeod Health Employees have been through the financial education initiative at McLeod Health in Florence, South Carolina. The results have been absolutely phenomenal, with over $1,476,000 in debt paid off or new savings generated during the 13 week class! Further, the average financial wellness of class participants has increased over 43% as measured by the Personal Financial Wellness Scale© assessment tool from the Personal Finance Employee Education Foundation. Before taking this course, participants’ average Financial Wellness score was 4.3 out of a possible 10. After the 13 week class, the scores improved over 2 points to 6.3. “These results are even more remarkable considering the current economic climate at a time when most people in the U.S. are very worried about their personal financial well-being," said Shannon Carr, Assistant Director of Employee Relations at McLeod Health. “It has been incredible seeing employees, family members, and accountability partners get excited about taking control of their money." Here is a quick look at McLeod Health's results since they began the financial education initiative in September, 2008: • Over 450 participants • 94% "graduation" rate • About $1.5 million in overall financial improvement • More than 500 credit cards destroyed Media Says Financial Stress Hurts Productivity Read More... Research 1 in 4 Workers Seriously Financially Distressed Financial Distress Among American Workers Final Report: 30 Million Workers in America Seriously Financially Distressed and Dissatisfied Causing Negative Impacts on Employers Read more... Read full report ... Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information PFEEF Newsletter E-mail: Archived Newsletters Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use Keywords: workplace financial education, financial education, basic financial education, financial literacy, financial well-being, financial wellness, financial distress, work time wasted, personal financial wellness, Personal Financial Wellness Scale™, Personal Financial, Well-Being scale, personal financial health, health and personal finances");sQ1[2]=new Array("http://www.personalfinancefoundation.org/about-us.html","About PFEEF","","Home About Us ROI Model Research Press Contact Us About Us Mouseover the images for more information. Board of Directors Research Advisory Council Click here for more information. Donor List Click here for more information. Approved List of PFW Scale™ Users Read more (PDF)... Administrative Manager About PFEEF The Personal Finance Employee Education Foundation, Inc. (PFEEF), a non-profit organization, promotes and facilitates financial education in the workplace ( Click here for press release). The Personal Finance Employee Education Foundation was established in 2006 as a logical extension of research conducted during the previous two decades. Initial research conducted during the 1990s at the National Institute for Personal Finance Employee Education at Virginia Tech demonstrated the employer's return on investment for providing financial education to employees. Additional research in the 2000s by the InCharge Education Foundation and academic scholars around the country further established that workplace education reduces employee financial distress and therefore, improves their financial well-being. Personal Financial Well-Being (PFW) Scale A major breakthrough occurred in 2006 with the publication and availability of the Personal Financial Well-Being (PFW) scale. The PFW Scale™, a 8-question survey, can be used by human resources professionals and financial education providers to make the business case that providing financial education to employees improves the bottom line. PFEEF Research tells us (1) the lack of financial literacy--spending plans, credit management, and savings--is the major reason why employees do not save for retirement; (2) money worries hinder employee job performance; and (3) providing employees easy access to basic financial education programs improves their personal financial behaviors and job performance as well as the employer's bottom line. What PFEEF Does PFEEF advocates best practices in workplace financial programs to increase employee well-being and employer profits. Support is provided to human resources professionals, financial education providers, academic researchers, and others involved in workplace financial education. We give employers tools and expertise to detail the bottom-line ROI of quality workplace financial programs. PFEEF does not provide financial programs; instead we recommend them. PFEEF Helps Employers We identify the providers of workplace financial programs and project their value to the employer's bottom line. PFEEF helps top management--one employer at a time--use company data to prove the bottom-line value of providing employees easy access to quality programs that improve personal financial behaviors. PFEEF Helps Workplace Financial Education Program Providers We help workplace financial providers demonstrate the value of their financial program to employers and therefore build market share in workplace financial education. 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ROI calculator Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[4]=new Array("http://www.personalfinancefoundation.org/research/research.html","Research","","Home About Us ROI Model Research Press Contact Us Research What Types of Research Can PFEEF Conduct for You? Read More (PDF)... 1. Employee Financial Distress Director of Research Click here for more information. 2. Health and Personal Finances Click here for more information. 3. Value to Employers Click here for more information. 4. Retirement Preparation Click here for more information. 5. Credit Counseling Helps Click here for more information. 6. Financial Literacy Education Click here for more information. Research Agenda Read more (PDF)... Online PFW Data Collection And Employer's Projected ROI Click here for more information (HTML). Approved List of PFW Scale™ Users Read more (PDF)... Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[5]=new Array("http://www.personalfinancefoundation.org/press/press.html","Press","","Home About Us ROI Model Research Press Contact Us Press Press Releases Click here for more information. Media Citations Click here for more information. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[6]=new Array("http://www.personalfinancefoundation.org/contact.php","Contact","","Home About Us ROI Model Research Press Contact Us Contact Information Please fill in your contact information. First Name: Telephone: (859) 433-0557 Address: 1100 13th Street, NW Suite 878 Washington, DC 20005 Last Name: E-mail: Phone: Comments: Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[7]=new Array("http://www.personalfinancefoundation.org/media/media.html","Contact Confirmation","","Home About Us ROI Model Research Press Contact Us USA Today says to Employers... Workers' Financial Stress May Hurt Productivity Read more... Houston Chronicle says... Employees’ Money Woes Filter into Workplace Read more... Employee Benefit News says... Employers Raising the Bar on Financial Education Read more... Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[8]=new Array("http://www.personalfinancefoundation.org/features/Financial-Distress-Among-American-Workers-Final-Report.html","Financial Distress Among American Workers Final Report","","Home About Us ROI Model Research Press Contact Us Worker Financial Distress Financial Distress Among American Workers Final Report: 30 Million Workers in America—One in Four—Are Seriously Financially Distressed and Dissatisfied Causing Negative Impacts on Individuals, Families, and Employers, March 23, 2005 Click here to download this press release (PDF). "Thirty million workers in America-one in four-are seriously financially distressed and dissatisfied with their personal financial situations." Leading academic scholars from 10 universities and five business experts in personal finance have issued this unprecedented and definitive joint report of new findings on the levels of financial distress and dissatisfaction among workers in America. Sixteen additional experts from the business world joined to give support to the findings. "It's an ugly situation for employers when more and more of their workers are distressed about their personal finances and running hard just to keep their heads above water financially," says Garman, professor emeritus, Virginia Tech University. Why? The reason is that many workers who struggle with money matters are less productive at their place of employment because of their financial distress. Depending upon their place of employment, 30% to 80% of financially distressed workers spend time at work worrying about personal finances and dealing with financial issues instead of working. Although most working adults are satisfied with their personal finances and are not financially distressed, a substantial minority is having considerable trouble. They are experiencing more than moderate degrees of distress about their personal finances; instead they report "high" to "overwhelming" levels of financial distress. They are dissatisfied with their financial situation and worry about money, debt and bills. They usually are insecure about their personal finances for retirement. They worry about having enough money to live on once they retire. Often, they lack confidence about their abilities to manage personal finances. Many do not even have hope that they might one day be able to catch up financially. People at all income levels in society experience distress about financial matters. A large proportion of those who are financially distressed, 40% to 50%, report that their health is directly impacted negatively by their financial worries and problems. "Health problems caused by financial distress cost employers big money," says Garman. Further, "These findings should motivate employers to offer employees access to resources, counseling and advice to decrease their stress about money matters and improve their financial lives." The authors of this report make note of Federal Reserve Chairman Alan Greenspan's observation in February 2004 that "much of the apparent increase in the household sector's debt ratios over the past decade reflects factors that do not suggest increasing household financial stress" (Source at http://www.federalreserve.gov/boarddocs/ speeches/2004/20040223/default.htm). While the increase in household debt ratios may or may not suggest increasing financial distress, this report does note that financial distress comes from overuse of credit as well as money and spending problems. Furthermore, today there are 30 million workers seriously distressed about their personal financial problems. One co-author from business observes "How can we help this situation if society has not acknowledged there's a problem?" Governments and employers need to recognize, understand and internalize the sizeable nature of the financial distress problem among workers as well as its ramifications, and take appropriate actions. The broader question is what can be done to address the situation? The 4 ½ page summary report is supplemented with an additional 28 pages of key findings and cogent quotes from dozens of studies in Summary of Research Findings on Financial Distress and Dissatisfaction: Dissatisfaction with Financial Situation, Stress about Personal Finances, Living Paycheck-to-Paycheck, Stress about Retirement, Lack of Confidence about Ability to Manage Personal Finances, Health and Stress about Personal Finances are Related, and Distress about Health Care Costs and Bills. The list of references contains 170 research studies, reports, and media stories, many of which are available on the Internet. The statistical data in this report are uncomplicated and easy to read. Click here to access the full report (PDF). Four recommendations are provided and elaborated upon for those who are financially distressed: (1) Follow the wise old saying to "spend less than you earn"; (2) Make and implement plans to prevent poor money management and reduce financial distress; (3) Determine the best options to relieve financial distress; and (4) Get help through the workplace. Another appendix provides a list of federal government and non-profit organization online resources that can help users build wealth. Contact information for the 15 authoritative co-authors and 15 other personal finance experts is provided in the report. Click here to access the full report (PDF). Click here to download this article (PDF). Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[9]=new Array("http://www.personalfinancefoundation.org/features/Financial-Distress-Among-American-Workers-Final-Report-full.html","Financial Distress Among American Workers Final Report","","Home About Us ROI Model Research Press Contact Us Worker Financial Distress Financial Distress Among American Workers Final Report: 30 Million Workers in America—One in Four—Are Seriously Financially Distressed and Dissatisfied Causing Negative Impacts on Individuals, Families, and Employers, March 23, 2005 Click here to download this article (PDF). With contributions from other personal finance experts (also available as press spokespersons), including:b Michael McAuliffe, David C. Jones, Ray E. Noftsinger, Michael Schiano, David A. Lander, Bernice B. Wilson, Dennis Ackley, Steven S. Shagrin, Al Otto, Thomas R. Watson, Bill Keenan, Brooks Hamilton, David L. Ireland, Kelly L. Reese, and Blanchard D. Warren. March 23, 2005 "More and more families are running harder and harder to stay in the same place or to reduce the amount that they are falling behind."1 In survey after survey, people say that they are financially distressed and dissatisfied with their personal finances. In this report, a national team of academic scholars and other experts conclude that 30 million workers in America-one in four-are seriously distressed and dissatisfied with their personal financial situations. Not only does this have negative consequences for the workers, their families and co-workers, and their employers, it also constitutes a serious social problem. The public and government need to recognize and internalize the sizeable nature of the financial distress problem as well as its ramifications, and take appropriate actions. This report pops the mythical bubble that urges people to ignore these problems or worse denies their existence for some perception of the "greater good." This definitive report is based on decades of research and it reports on reviews of over a dozen new research studies. This report takes data from 11 major business sponsored surveys, 10 of which were conducted 2004 by nationally known companies, such as MetLife, Principal Financial, American Express, Cigna, AARP, Caravan, Roper, and Gallup, as well as 10 recent published academic research studies and new not-yet-released national research findings to be presented on April 9, 2005 in Columbus, Ohio at the national conference of the American Council on Consumer Interests (ConsumerInterests.org). Purposes of the Research This research was undertaken: (1) to identify the scope and severity of the problem of worker financial distress; (2) to seek a developing consensus on the findings, and (3) to present the growing amount of evidence to motivate employers to help employees reduce financial distress. This report serves as the basis of a journal article that is in preparation. Wide Consensus on Conclusions and Recommendations The statistical data in this report are uncomplicated and easy to read. No one disputes the basic statistical facts offered in this report, although some may disagree with their interpretation. The five conclusions and four recommendations offered in this report are widely agreed upon. Media Contact Information for Authors and Other Experts in Personal Finance A number of leading academic scholars and businesspersons who are experts in personal finance have issued this unprecedented joint report on the levels of financial distress and dissatisfaction among workers in America. A number of other experts in personal finance have also agreed to serve as authoritative sources for the media, and their contact information follows as well as contact information for the co-authors. One Appendix Summarizes Research And Another Lists Online Resources There is general agreement on the conclusions described below and summarized in the Appendix of this report. The contents of the Appendix, Summary of Research Findings on Financial Distress and Dissatisfaction, are arranged as follows: Dissatisfaction with Financial Situation, Stress About Personal Finances, Living Paycheck-to-Paycheck, Stress About Retirement, Lack of Confidence About Ability to Manage Personal Finances, Health and Stress About Personal Finances are Related, and Distress About Health Care Costs and Bills. Another Appendix lists a list of federal government and non-profit organization online resources that can help users build wealth. References This report provides a listing of References that includes 170 research studies, reports and media stories, many of which are readily available on the Internet. Conclusions Although most working adults are satisfied with their personal finances and are not financially distressed, a substantial minority is having considerable trouble. Thirty million workers-one in four-are suffering serious financial distress. This report takes data from 11 major business sponsored surveys conducted by nationally known companies, such as MetLife, Principal Financial, American Express, Cigna, AARP, Caravan, Roper, and Gallup, as well as 10 published academic research studies. Most of the research findings were reported within the past 12 months. A review of these studies concludes that 25% of working adults-that's one in four-are seriously financially distressed. This amounts to 30 million workers in America. They are experiencing more than moderate degrees of distress about their personal finances; rather they report high to overwhelming levels of financial distress. Furthermore, they report they are dissatisfied with their personal financial situations. Finally, research reveals that there are many negative consequences of financial distress upon individuals, their families and co-workers, and their employers. People who are financially distressed are often living paycheck-by-paycheck with no money for extras. They are dissatisfied with their financial situation and struggle with money and debt and worry over bills. They usually are insecure about their personal finances for retirement. They worry they will not have enough money to live on once they retire. They often lack confidence about their ability to manage personal finances. Many do not even have hope that they might one day be able to catch up financially. Poor health and financial distress are related. A large proportion of those who are financially distressed, 40% to 50%, report that their health is negatively impacted by their financial worries and problems. Those who are financially distressed often report they are experiencing a variety of unpleasant consequences of mental stress: poor health. They report disagreements with friends, family members and co-workers; restricted social life; and reduced job productivity. Also, they often report they are distressed about health care costs and medical bills. This distress can further unveil or aggravate a depressive or anxiety disorder. Such impairments can affect an employee's coping skills, attention and concentration ability to the point of decreased job attendance, reduced workplace performance and hamper job retention for employers. The relationship between poor health and serious financial distress suggests provocative clues that should be further investigated, particularly by the health care industry, employers, governments, and others involved in paying the costs for medical care. Personal financial problems hurt workers' productivity. Thirty to 80% of financially distressed workers spend time at their place of employment worrying about personal finances and dealing with financial issues instead of working. These people often admit that their concerns about personal finances interfere with their work. They may take time from work to talk with co-workers about personal financial problems, communicate with creditors about past due payments, pay personal bills, balance a checkbook, or talk to a lender about a debt consolidation loan. They may pay bills while at work. Because of their financial distractions, they often report they are unable to carry out their normal responsibilities, have to cut down their workload, and are not able to accomplish as much as usual. This cycle further interrupts employee performance, workplace attendance and poses greater financial burdens compiling stress and financial pressures. Personal financial distress, therefore, negatively impacts employers. Financial problems are not confined to lower income levels. Distress about financial matters is experienced at all income levels in society. It is partly a function of income, particularly among those earning less than an average income. While there is an inverse relationship between income and financial distress, other factors provide a more accurate explanation. The amount of consumer debt is a factor, especially among those with high debt-to-income ratios. Financial distress also is very much a function of lifestyle, predominantly among people who spend almost every dollar they earn or use credit so they can live beyond their means. Varying Degrees of Financial Distress "How much financial distress are we talking about?" A normative perspective on the varying degrees of financial distress can be illustrated with a 10-point scale with the higher numbers indicating increasing distress. See Table 1. Table 1 - Normative Labels for Levels of Financial Distress Zero financial distress Very low financial distress Low or little financial distress Minimal financial distress Average financial distress Moderate financial distress High financial distress Very high financial distress Extremely high financial distress Overwhelming financial distress This report on financial distress is about adults experiencing "serious financial distress" in the 7-to-10-range as shown on the scale in Table 1. Financial Distress Levels by Household Income This report takes data from a variety of secondary and primary sources of data and uses deductive logic to determine that 25% of working adults are experiencing serious financial distress. Some studies (see appendix) have found that 60%, or more, adults are financially distressed. Reports of these higher levels may occur since when one working adult is financially distressed, it may well affect the heads of households, the spouses or unmarried partners, and other adults and children living at home although the latter are usually not surveyed. Table 2 summarizes the research findings of financial distress experienced by different income groups. It shows the authors' estimates of the ranges of percentages of financial distress among the population according to level of household income. These conclusions are based upon a review of more than two-dozen studies cited in the appendix. Note in the table that for all income groups the estimated range of financially distressed employees is 25% to 60%. The highest percentages of financially distressed adults are more frequently found among those with lower household incomes. However, people in all income groups experience serious financial distress because income alone is not the single determinant that influences whether or not people experience financial distress. According to the Current Population Survey of the Bureau of Labor Statistics and U.S. Census Bureau data, it is estimated that there are 120 to 137 million adults in the workforce (full and part-time) in the United States. The 25% means 30 million people are seriously financially distressed. (This calculation uses the conservative workforce estimate [0.25 X 120M], otherwise the number is 34 million [0.25 X 137M].) This is a considerable portion of the U.S. adult population, comprising one in four working adults. Table 2 - Financial Distress Levels by Household Income Household Income Range of Levels of Financial Distress Less than $14,999 80% to 90% $15,000 - $24,999 70% to 80% $25,000 - $34,999 50% to 60% $35,000 - $49,999 30% to 60% $50,000 - $74,999 30% to 50% $75,000 - $99,000 20% to 30% $100,000+ 9% to 25% All income groups combined 25% to 60% The authors of this report make note of Federal Reserve Chairman Alan Greenspan's observation in February 2004 that "much of the apparent increase in the household sector's debt ratios over the past decade reflects factors that do not suggest increasing household financial stress" (Source at http://www.federalreserve.gov/boarddocs/ speeches/2004/20040223/default.htm). This report comments that financial distress comes from overuse of credit as well as money and spending problems. Furthermore, 30 million workers are seriously distressed about their personal financial problems. How can we help this situation if society has not acknowledged there's a problem? Governments and employers need to recognize, understand and internalize the sizeable nature of the financial distress problem among workers as well as its ramifications, and take appropriate actions. The broader question is what can be done to address the situation? Recommendations for the Financially Distressed This report offers four recommendations. Follow the wise saying to "spend less than you earn." Those who succeed financially set goals, live below their means, take on new borrowing cautiously, pay off credit card debts monthly, and save and invest for the future.2 Choosing to live below one's means and saving and investing the difference, particularly when compared to those who spend all and often more than they earn, is a key to how people succeed financially. Make and implement plans to prevent poor money management and reduce financial distress. Consumers need to plan ahead, spend less than they earn, distinguish between needs and wants, be more practical and realistic in making purchases, and comparison-shop. Tracking one's expenses for a month by writing them down will reveal that some extra money would be available if it were not spent on non-essential wants, in contrast to needs. Consumers need to make more smart financial decisions by paying down debt, building a cash reserve, increasing savings, investing for retirement, and reordering their expectations and financial priorities where appropriate. This is accomplished by consciously making tradeoffs between spending on today's wants for a more financially secure future. Determine the best options to relieve financial distress. Eight options are available for people who are distressed about their personal finances: (1) evaluate your financial situation to identify where to cut back on expenses, (2) increase income, (3) target and pay down high-interest debt; (4) obtain a debt-consolidation or home-equity loan and use the proceeds to repay creditors only after learning to monitor expenses; (5) renegotiate credit repayment terms with creditors, (6) return secured assets to creditors; (7) seek budgeting and credit management assistance from a non-profit credit counseling agency, and (8) contact an attorney regarding the possibility of an unsecured debt settlement solution or declaring bankruptcy. Get help through the workplace. Seeking help from one's employer is an option for many financially distressed individuals. Federal Reserve Board Governor Edward M. Gramlich remarked that employers should make financial education for their employees a lifetime responsibility."3 Other experts observe that "Comprehensive financial education programs in the workplace provide a wide range of curricula that can better inform and prepare workers to handle their financial challenges, whatever they may be. These programs can go a long way toward helping allay financial stress and improving attitudes, morale and productivity.4" More than half of mid and large employers say they provide employee financial education because "it improves their productivity by reducing financial stress."5 Interested employees should ask their employer about financial education programs offered at the workplace, such as those provided by an independent financial education company, union, credit union, and/or a credit counseling agency. Endnotes 1Please reference this report in the following manner: Garman, E.T., Junk, V.W., Kim, J., O'Neill, B.J., Prochaska-Cue, K., Prawitz, A.D., Lawrence, F.C., Yao, R., Weagley, R.O., Weisman, R.L., Carnathan, G., Schaus, S., Hutcheson, M.D., McKinley, D.H., Brook, M.J. (2005, March 22). Financial Stress Among American Workers, Final report: 30 million workers in America-One in four-Are seriously financially distressed and dissatisfied causing negative impacts on individuals, families and employers. Independent report from the authors that is available at www.pfeef.org. Media Contact Information for Report Co-Authors i E. Thomas Garman, Author, Researcher and Advisor; Fellow and Professor Emeritus, Virginia Tech University, 8044 Rural Retreat Court, Orlando, FL 32819, USA; Tele: 407-363-9048; E-mail: tgarman@bellsouth.net; Web: www.pfeef.org. Dr. Garman directed Virginia Tech's National Institute for Personal Finance Employee Education and directed several award-winning research studies. He has written many research articles and over 30 books, including Personal Finance and Consumer Economic Issues in America. ii Virginia W. Junk, Ph.D., Professor, University of Idaho, FCS 3183, Moscow, ID 83844-3183; Tele: 208-885-7264; E-mail: vjunk@uidaho.edu. Junk researches decision making in retirement financial planning and in housing of those age 40 and older, as well as "sandwich generation" issues relating to financial, time and stress management. She teaches personal finance, and is author of 40 publications, including textbook supplements. iii Jinhee Kim, Ph.D., Assistant Professor and Extension Specialist, University of Maryland, 1204 Mary Mount Hall, College Park, MD 20742-7515; Tele: 301-405-3500; Email: jinkim@umd.edu. Kim has conducted award-winning research on employee financial well-being. She researches financially distressed consumers, financial management behaviors, absenteeism, and job outcomes. iv Barbara O'Neill, Ph.D., CFP®, CRPC, AFC, CHC, CFCS, Extension Specialist in Financial Resource Management, Professor II, Rutgers Cooperative Extension, Cook College Office Building, Room 107, 55 Dudley Road, New Brunswick, NJ 08901, USA; Tele: 732-932-9155, X250; Cell: 973-903-7869; Fax: 732-932-8887; E-mail: oneill@aesop.rutgers.edu; Web: www.rce.rutgers.edu/money2000 and www.investing.rutgers.edu. O'Neill has taught personal finance topics to over 24,000 consumers and written over 1,500 newspaper articles. She is the author of Investing On A Shoestring and Saving On A Shoestring and co-author of Money Talk: A Financial Guide For Women. O'Neill researches relationships between financial well-being and health. v Kathy Prochaska-Cue, Associate Professor, University of Nebraska-Lincoln, 137 Mabel Lee Hall, Lincoln NE 68588; Tele: 402-472-5517; E-mail: kprochaska-cue1@unl.edu. An extension family economics educator, Prochaska-Cue has worked with thousands of families one-on-one as a financial counselor, and authored numerous research and financial education publications. vi Aimee D. Prawitz, Associate Professor, School of Family, Consumer, & Nutrition Sciences, Northern Illinois University, DeKalb, IL 60115; Tele; 815-753-6344; E-mail: aprawitz@niu.edu. Prawitz teaches graduate research methods courses, serves as a member of the editorial board of the Journal of Consumer Affairs, and she is the editor of the Journal of Consumer Education. Prawitz researches consumer satisfaction with elderly American's housing choices, attitudes toward credit cards, consumer complaint processes, and financial distress. vii Frances C. Lawrence, Williams Alumni Professor, Louisiana State University, School of Human Ecology, Baton Rouge, LA 70803; Tele: 225-578-1726; E-mail: flawrence@lsu.edu. Lawrence teaches university finance and consumer economics courses at Louisiana State University. Her research related to poverty and college students' money management is nationally recognized. viii Rui Yao, Ph.D., Assistant Professor, South Dakota State University, Box 2275A, Brookings, SD 57007; Tele: 605-688-5009.Yao teaches financial planning and consumer affairs and has conducted research on retirement adequacy. ix Robert O. Weagley, Chair of the Department of Consumer and Family Economics at the University of Missouri - Columbia., University of Missouri; Tele: 573.882-9651; E-mail: weagleyr@missouri.edu. Weagley is a registered investment advisor with Sundvold Capital Management, LLC (www.sundvold.com), an asset management and retirement plan specialty firm. He is Vice President of Marketing and Public Relations for the Academy of Financial Services. x Robert L. Weisman, D.O., Associate Professor, Department of Psychiatry, University of Rochester Medical Center; Strong Ties, 2613 West Henrietta Road, Rochester, NY 14623; Tele: 585-275-0300; E-mail: Robert_Weisman@urmc.rochester.edu. Dr. Weisman has written and lectured on the impact of personal financial stress, depression and workplace performance. xi Glenn Carnathan, Jr., Senior Vice President & Chief Human Resources Officer, Saint Thomas Health Services, 618 Church Street, Suite 520, Nashville, TN 37219; Phone: 615-284-6847; E-mail: gcarnath@stthomas.org; Web: www.sths.com. Carnathan is the national leader of a system-wide financial well-being initiative for Ascension Health, Saint Thomas' parent and the largest not-for-profit health system in the United States with over 100,000 employees. Recipient of 2004 HR Excellence Award (based on Malcolm Baldrige National Quality Award criteria) sponsored by the Nashville Area Chamber of Commerce. xii Stacy Schaus, CFP®, Founder, Hewitt Financial Services, Hewitt Associates LLC, Personal Finance Center, 100 Half Day Road, Lincolnshire, IL 60069; Tele: 847-442- 4698; E-mail: stacy.schaus@hewitt.com; Web: www.hewitt.com. Schaus developed the Defined Contribution AllianceT with investment managers across the country and also built the investment consulting team to support this program. She is an investment-issues committee member with the Profit Sharing Council of America. Schaus has written a number of articles on investing, defined contribution trends, and personal finance issues, has been quoted in major publications, and has appeared as a guest on financial shows aired by CNBC and CNNfn. xiii Matthew D. Hutcheson, M.S., CPC, AIFA®, CRC, MPF®, Owner/CEO, Matthew D. Hutcheson, LLC, 15924 Quarry Road, Lake Oswego, Oregon 97035, USA; Tele: 503-968-9783; E-mail: matt@erisa-fiduciary.com. Hutcheson is an Independent Pension Fiduciary who serves as named fiduciary or committee member for corporations on the NYSE, NASDAQ and the Toronto Stock Exchanges. He also serves as fiduciary or consultant conducting fiduciary audits, reviews and fee studies for privately held employers. Hutcheson is co-founder and Secretary/Treasurer of the ERISA Fiduciary Guild. xiv David H. McKinley, Managing Director, McKinley Investment Group, 2000 Main Street, Wheeling, WV 26003, USA; Tele: 304-230-2400; E-mail: dmckinley@wachoviafinet.com; Web: www.mckinley.wbsec.com; Mr. McKinley has worked in the financial planning and investment management industry since 1990. Prior to forming the McKinley Investment Group, Mr. McKinley was vice president of investments at a national investment firm, an investment analyst with a regional bank and trust's investment department, and assisted in managing the brokerage division of the same firm. He is quite knowledgeable on the topic of financial distressed employees. xv Marvin J. Brook, Manager/Controller Finance, San Francisco Performance Cluster, Northern California Division, United States Postal Service, P.O box 884474, San Francisco, CA 94188-4474; Tele: 415-550-5439; E-mail: marvin.j.brook@usps.gov. Brook develops and delivers financial education programs, including newsletters, videos and workshop presentations. Brook has seen first hand the positive effects on employees when their financial situations improve. Media Contact Information for Other Personal Finance Experts Wanting to Comment on These Research Findings b Michael McAuliffe, President and CEO, Family Credit Counseling Service, 4306 Charles Street, Rockford, IL 61108; Tele: 800-994-3328, X-128; E-mail: michael.mcauliffe@familycredit.org; Web: www.familycredit.org/. Michael McAuliffe is a noted expert on personal financial planning and consumer debt and co-founder of Family Credit Counseling Service. He has assisted thousands of individuals and families with credit, debt, and money management problems. Dismayed that most credit counselors would remove the tithe from the budget of those in need, he formed a Non-Profit credit counseling agency based on Biblical teaching. He has contributed to numerous print publications and broadcast outlets. Family Credit Counseling sponsored a national poll on financial distress in December 2004. b David C. Jones, Ph.D., President, Association of Independent Consumer Credit Counseling Agencies, 11350 Random Hills Road, Suite 800, Fairfax, VA 22030; Tele: 703-934-6118; E-mail: assoc@aiccca.org; Web: aiccca.org. Jones recently retired as President and CEO of a major national credit counseling and consumer education agency. He concentrates his efforts in support of the credit counseling industry, especially consumer education initiatives, and actively assists in the development of effective state and federal consumer protection regulations for the credit counseling industry. b Liz Davidson, CEO and Founder, Financial Finesse, 111 N. Sepulveda Boulevard, Suite 305, Manhattan Beach, CA 90266; Tele: 310-802-6855 or 866-733-2677, x355; E-Mail: media@financialfinesse.com; Web: www.financialfinesse.com/ffinesse/jsp/home.jsp. Davidson founded Financial Finesse in 1999 to address the need for unbiased financial resources for investors to educate themselves on investing and financial planning. Today, Financial Finesse provides unbiased full service financial education for over 350 organizations and their employees. She is passionate about financial education and is a prolific public speaker, and she has been invited to speak at the leading Human Resources and Benefits conferences across the country. b Ray E. Noftsinger, Founder of Harbour Credit Counseling Services, Inc; Financial and Estate Planner, 101 N. Lynnhaven Road, #300, Virginia Beach, VA 23452; Tele: 757-340-2564, x302; E-mail: rayn@40debts.org; Web: www.40debts.org. Noftsinger has been involved in financial planning for all income levels in various specialties. He started Harbour in 1996 with one client and his organization currently assists 15,000 families in elimination of unsecured personal debt. Former President and Board Member Association of Independent Consumer Credit Counseling Agencies. Testified at Department of Justice hearing regarding credit counseling capacity for pre-bankruptcy certification and education. b Michael Schiano, Vice President of Outreach, InCharge Education Foundation, 2121 Park Center Drive, Orlando, FL 32835; Tele: 407-532-5640; E-mail: mschiano@incharge.org; Web: InChargeFoundation.org. Schiano is a Certified Credit Counselor and author of Spend Your Way to Wealth. He writes the "Ask The DebtBuster" column for Military Money and Young Money magazines. He hosts a nationally syndicated financial improvement radio show heard across the U.S. each day, and he hosts The Military Money Minute broadcast worldwide on the Armed Forces Radio Network. b David A. Lander, Attorney, Thomson Coburn LLP, One US Bank Plaza, St. Louis, MO 63101; Tele: 314-552-6067; E-mail: DLANDER@thompsoncoburn.com. Lander's practice includes representation of secured creditors, mortgagees, unsecured creditors, and debtors and unsecured creditors' committees. Lander is the historian of the credit counseling industry and a student and teacher of consumer credit issues. b Benice B. Wilson, Ph.D., CFCS. Extension Resource Management Specialist, Alabama Cooperative Extension System, P.O. Box 967, Normal, AL 35762; E-Mail: bbwilson@aces.edu; Tele: 256-372-4969. Wilson develops, implements and evaluates educational projects and programs relative to family and consumer economics, and resource management for families, individuals, youth, and the general public with a focus on urban and nontraditional audiences. b Dennis Ackley, President, Ackley Associates, 612 SE Cumberland Drive, Lees Summit, MO 64063; Tele: 816-695-4808; E-mail: dennisackley@hotmail.com; Web: DennisAckley.com. Ackley has been writing and speaking for more than a dozen years about how the current approach to retirement education does not and cannot work because it ignores essential elements needed to help adults become personally motivated to learn how to define, pursue, and achieve their personal retirement dream. In addition, until retirement education providers are required to have meaningful success measures that are tied directly to the individual's success, more Americans are doomed to fail to achieve their retirement income needs. b Steven S. Shagrin, JD, CFP®, CRPC®, CRC®, CELP, President, Planning For Life, 4657 Logangate Road, Youngstown, OH 44505-1713; Tele: 330-727-0444/888-456-4777; E-mail: Shags@PlanningForLife.info; Web: www.PlanningForLife.info. Shagrin is past president of the International Society for Retirement & Life Planning. Editor of Facts About Retiring in the United States (2001, HW Wilson Co.), and author of forthcoming Managing My Life: Managing My Money, (2005, Publications for Heart and Spirit Inc.) b Al Otto, AIF®, Co-Founder, White Horse Advisors, LLC, 6151 Powers Ferry Road, Suite 400, Atlanta, GA 30339; Tele: 678.322.3020; E-mail: al.otto@whitehorseadvisors.com; Web: www.whitehorseadvisors.com. Otto is a leader in the retirement planning industry and an expert on fees in retirement plans. He has contributed writings and been quoted in publications such as Plan Sponsor Magazine, Employee Benefit News and Employee Benefit Plan Review. Otto recently completed an audio CD entitled "Lost Money In Your Retirement Plan." b Thomas R. Watson, President/CEO, Watson Communications International, Inc., 1809 NW Loop 281, Suite 100-160, Longview, TX 75604, USA; Tele: 903-758-0855; E-mail: tom@watson-training.com; Web: www.watson-training.com. Dr. Watson is the author of the soon to be published, The Great American Debt Opportunity: Turning Debt into Wealth. b Bill Keenan, Author, Financial Coach and Radio Host, 1129 Emerson Court, Suite B, Burnsville, MN 55337; Tele: 952-200-9019; E-mail: billk@debtfreeroad.com; Web: www.debtfreeroad.com. As the author of Spend Smart, Creating Wealth with no Room in your Budget, the co-author of Invest in Your Debt and host of Financial Fitness he has helped thousands of families discover how to achieve financial freedom by first becoming debt free. b David L. Ireland, Author and Professional Speaker; Retired Eastman Kodak executive, founder and President of Invest In Your Debt, Inc., 8005 Evadean Circle, Austin, Texas 78745; Tele: 512- 447-1990; E-Mail: IYD@InvestinyourDebt.com; Web: www.InvestinyourDebt.com. Ireland's Invest in Your Debt book shows that the most effective way to achieve financial freedom is to invest in ones debt and receive a risk-free, tax-free, double-digit return on ones debt investment. He lectures to employees in corporations, students at colleges and people in churches on the perils of and solutions to personal debt. b Brooks Hamilton, JD, Attorney-at-Law and a Master Pension Fiduciary, Brooks Hamilton & Partners, 38 Vista Hermosa, Santa Fe, NM 87506; Tele: 972-839-5260; E-mail: bhamilton@brookshamilton.com; Web: www.brookshamilton.com. Hamilton is Co-founder The REVERE Coalition, and co-founder and President of the ERISA Fiduciary Guild. Hamilton continues to be appointed as Independent Fiduciary by federal courts to assume fiduciary responsibility for retirement plans whose fiduciaries have failed in their responsibilities. Has appeared on CBS Evening News, CNBC, and in many newspapers throughout the country. b Kelly L. Reese, ChFC®, President, Financial Freedom Society, Inc., 14906 Winding Creek Court, Building A, Tampa, FL 33613; Tele: 813-960-3131; E-mail: elder@ffsi.com. Reese is a Christian Stewardship Counselor and author of The Art of Achieving Financial Freedom. He serves as a member of the board of the Christian Counseling Foundation. b Blanchard D. Warren, Seminar Leader and owner of Debts To Wealth, 5A Johns Avenue, Medfield, MA 02052; Tele: 508-359-4769; E-mail: webmaster@debtstowealth.com; Web: www.debtstowealth.com. Warren teaches a three-hour seminar about a system to eliminate all debt. Appendix: Summary of Research Findings on Financial Distress and Dissatisfaction The contents of this Appendix are arranged as follows: Dissatisfaction with Financial Situation, Stress About Personal Finances, Living Paycheck-to-Paycheck, Stress About Retirement, Lack of Confidence About Ability to Manage Personal Finances, Health and Stress About Personal Finances are Related, and Distress About Health Care Costs and Bills. Dissatisfaction with Financial Situation Bankrate.com Study. Bankrate.com (2003) conducted a Financial Literacy Study and found that 28% of people reported a lack of satisfaction with their finances. Sixteen percent of those surveyed were "not satisfied at all" with their personal financial situation and 12% were "not too satisfied." Describing their feelings when dealing with their personal finances, 24% in the Bankrate.com study reported they were "frustrated" and 10% were "confused." Asked how regularly they keep an emergency fund of at least 3 months' living expenses, 29% said they rarely or never did. Thirty-seven percent agreed with the statement that they could not afford to put money away for an emergency, with 55% saying they were very or somewhat concerned about an emergency fund. A quarter (24%) agreed with the statement that they would not be able to stick to a budget if they had one. Thirty percent reported they were very concerned or somewhat concerned right now that they are not able to pay their mortgage or rent, 29% were similarly concerned about being able to pay their credit card bills, and 45% were concerned about being able to put away enough for their retirement. The semi-annual Principal Financial Well-Being Indexsm (The Principal, 2004; Principal Financial Well-Being, 2004) of American workers (at firms with 10-1,000 employees) reveals that, using a 5-point scale, 3 out of 4 employees (78%) are very concerned about their long-term financial future. Only 26% agreed with the statement "I am extremely happy about my current financial well-being;" 24% were neutral and 50% disagreed. A 2003 Principal study (Principal, 2003) found that half of those who expected a tax refund from the IRS planned to use the money to pay down short-term debt. In a study of over 16,000 employees who lived in eight geographic regions of the United States employed by a large insurance company (Hira & Itote, 2001), there were substantial numbers of people who were dissatisfied with various aspects of their personal finances. Those reporting being very dissatisfied or dissatisfied on the following satisfaction indicators: ability to get ahead - 25.6%; use of money - 22.3%; long-term financial goals - 29.7%; meeting unexpected expenses - 34.5%; and unpaid balances on credit cards - 41.3%. A number of studies that collected data from various segments of the population found that between 21.3 and 52.6% of respondents describe themselves as "dissatisfied" with their present financial situation. The respondents marked choices 1 through 4 on a 10-point stair-step scale of satisfaction with one's present financial situation. Those who are satisfied were instructed to mark the higher steps, choices 6 through 10. Those who marked choices 4 and 5 were in the middle range of satisfaction. Grable & Joo (2003) found 34.7% of faculty and staff working for two universities in two mid-western states were dissatisfied. Kim (2000) found that 41.5% of white-collar workers in three mid-western states were dissatisfied. Kratzer, Brunson, Kim, Garman, & Joo (1998) study of well-paid blue-collar manufacturing workers in the south found 21.3% were dissatisfied with their financial situation. Kim, Bagwell & Garman (1998) found white-collar workers in the corporate headquarters of a New York City advertising firm had a mean score of 5.7 on a 10-point scale where 10 is the highest level of financial satisfaction. Joo (1998) found 52.6% of clerical workers in an eastern state were dissatisfied. A 1990 study (Porter; Porter & Garman, 1993) of a random sample of taxpayers in an eastern state using a scale similar to Joo (1998) but with 11-points (highest score was best) found that 30.8% marked themselves as dissatisfied marking choices 1 through 5) with their personal financial situation. The mean was 6.5, showing a slight skewness toward positive perceived financial well-being, with a standard deviation of 2.2. A 2004 study by the InCharge Education Foundation (Sorhaindo & Garman, 2005) found that 28% of a nationally representative sample of working adults reported their overall financial distress/financial well-being was below average. This finding is consistent with other studies on financial satisfaction/dissatisfaction, financial distress and financial well-being. The general population typically reports a slight skewness towards positive scores, or above average, when asked about their financial condition. In other words, on a 10-point scale people typically report average scores of 5.7, 5.9, 6.2, or slightly higher where 10 is the highest or best score. Most working adults are satisfied with the personal finances and are not financially dissatisfied or distressed. Credit counseling clients are one of the most clear-cut populations of financially dissatisfied consumers. These are people who contact a non-profit credit counseling organization seeking assistance and advice in budgeting, credit and money management. Subjective measures, like a 10-point stair-step scale of satisfaction with one's present financial situation are often utilized in research (Festinger, 1957; Garman, 1999; Garman, Camp, Kim, Bagwell, Baffi, & Redican, 1999; Kim, 2000; Kim, Bagwell, & Garman, 1998; Kim, 2000; Kim, Garman & Sorhaindo, 2003; Porter, 1990; Winter & Morris, 1983). Self-reported numbers of these clients show that 75% to 90% expressed some high degree of financial dissatisfaction and distress owing to their personal financial affairs (Garman et al, 1999; Garman, 2001). This level of financial dissatisfaction and distress is much higher than in the general population. Garman (2004b) estimates that approximately 3 million people annually (not 9 million as cited in Schmitt, Timmons, and Cady in 2001) contact a non-profit consumer credit counseling service seeking assistance with their budgeting, money and credit problems. Over a six-year time period that amounts to 18 million financially troubled consumers who contacted a credit counseling agency.6 Since financial dissatisfaction does not go away for many of those who contact a consumer credit counseling agency, the authors of this report estimate that it is likely that approximately one-third of those who sought assistance from a credit counseling during the last six years are still struggling financially. Thus, we calculate that 33% of the 18 million financially dissatisfied and distressed who contacted a credit counseling agency in the past six years, or 6 million people, currently remain seriously dissatisfied with their personal financial situation. Bankruptcy represents another substantial group of financially dissatisfied adults. For the calendar year of 2004, about 1.5 million (1,563,145) consumers filed for personal bankruptcy (Bankruptcy Statistics, 2005). Sullivan (2003) notes that the genuine annual bankruptcy figures are really much higher because of jointly filed bankruptcy petitioners. Bankruptcy expert Elizabeth Warren agrees (Garman, 2005, March 17). Based on the 1,563,145 filings in 2004, Warren notes that there were 475,712 cases of joint petitions. That means, notes Warren, that the 2004 multiplier is about 1.304. (In 2001, the multiplier was 1.319 [see Warren, Thorne, & Sullivan, 2001].) Using Warren's multiplier of 1.304 for the number of married couples filing for bankruptcy, the number of adults impacted by bankruptcy in 2004 was 2,038,341 (1.304 X 1,563,145). These experts also observe that bankruptcies really affect a total of about 5 million people annually in households when one counts both the petitioners' spouses as well as their children. Combining data from the American Bankruptcy Institute and previous annual data (Quarterly U.S. Bankruptcy Statistics, 2005) show that there have been 8,678,826 non-business, or personal, bankruptcies for the six-year period between 1999 and 2004. Since consumers cannot declare bankruptcy again for six years, these numbers are mutually exclusive. Applying Warren's proportional estimate of bankruptcies with spouses (1.304) means that over 11 million (11,317,189 = 1.304 X 8,678,826) adults declared bankruptcy during the past six years. Next year more than a million consumers (1,281,360) who declared bankruptcy six years ago in 1990 will be eligible again, and that point has been observed by others (Bankruptcy boomerang, 2003). Since financial dissatisfaction just does not simply disappear for many of those who file bankruptcy, the authors of this report estimate that it is likely that approximately 50% of those who filed for bankruptcy during the last six years are situations. Thus, we calculate that half of the 11,317,189 adults who filed for bankruptcy in the past six years, or 5.6 million people (11,317,189/0.5), currently remain seriously financially dissatisfied. Stress About Personal Finances An American Express survey found that 60% of working Americans were experiencing moderate (41%) to high (19%) levels of financial stress. Thirty-nine percent were stressed by dealing with debts and 38% were stressed by paying regular bills (2nd American Express, 2004; Field & Vogt, 2004). The stress levels by income groups were: 30% of people with incomes up to $30,000; 22% $30,000-$50,000; 22% $50,000-$75,000; 17% $75,000-$100,000; and 9% of those with incomes of $100,000 or more. In a MetLife Study of Employee Benefit Trends (2003), 69% of employees surveyed were concerned with "having enough money to make ends meet." A Roper ASW survey for Money magazine found that 6 in 10 respondents say they worry a lot or sometimes about their finances, about twice as many as worry about their self-esteem, jobs, marriage, and friendships (Chatzky, 2003). A Caravan Saray poll (2004) found nearly three in four adults age 18-64 (72%) say paying current bills (54%) or paying off debt (18%) are usually their main financial concerns each month. A Consumer Federation of America and Credit Union National Association poll (Consumers say, 2003) found 46% of adults said they were concerned about meeting all their monthly payments on all types of debt other than their mortgage, and half of those, 28%, reported they were very concerned. When asked what they would do with a $5,000 windfall, 46% said they would pay down some debt. A Family Credit Counseling Service national survey (Research Report: Financial Stress Survey, 2004; Kidd, 2005) of people carrying credit cards asked what they would do with an unexpected $1,000 gift, and three-quarters (73.3%) said they would use it to pay down debt. Fifty percent of middle-income Americans ($25,000 to $75,000) revealed they were worried about their financial condition, according to a poll by Consumer Federation of America (Middle Americans become, 2003). More than two-thirds (69%) of those with incomes under $25,000 reported they were worried about their finances, and they are likely to have too little savings and too little income. A ComPsych survey (Reality of financial trouble, 2004) of employees' financial health found half (49%) doing poorly: 27% noted "I am one major setback away from financial disaster" and 22% marked "I am worse off than last year, with less savings/income and more debt than before." The remaining half (51%) reported they were the same or better off than before: "I am about the same as last year, with no changes in savings/income or debt" (23%); "I am better off than last year, with more savings/income and less debt that before" (22%); and "I am in the best financial shape ever, with bountiful reserves and very little debt" (6%). A ComPsych survey of employees found that personal finances cause stress in 36% of employees (ComPsych's Tell-It-Now, 2001). Financial Finesse, a financial education company with approximately 300 different companies as clients and 250,000 employees, regularly received telephone calls from employees seeking assistance. Thirty-nine percent of callers requested assistance with consumer debts and 17% called about budgeting and savings (Garman, 2005, March 22). These numbers were similar to the previous year (Debt, retirement, 2003). A Gallup Organization poll (Moore, 2004) found that 17% of Americans are very or moderately worried about paying the minimum amount due on their credit cards. Twenty-two percent were not too worried, and 46% were not worried at all. A Family Credit Counseling Service national survey (Research Report: Financial Stress Survey, 2004) found that the biggest financial fear of people carrying credit cards was that they'll never get out of debt (32.5%). A WoldWIT and E-Duction survey of 10,000 professional women, it was found that 90% of women who pay more than five bills while at work are moderately or considerably stressed about personal finances (People who pay, 2003). Twenty-seven percent of respondents to a Los Angeles Times survey reported that their personal finances were shaky, and 40% said they had difficulty making car and insurance payments and other installment loans (Atkinson, 2001). Employees who are financially distressed sometimes bring their financial troubles to the workplace with the result being reduced productivity. Researchers have determined that approximately15% of workers are so financially distressed that it negatively impacts the employer's bottom line (Garman, Leech & Grable, 1996). The full extent of the costs is unknown. Living Paycheck-to-Paycheck The MetLife Study of Employee Benefit Trends (2004) found that 28% of full-time employees report they sometimes have trouble paying their monthly bills, and 42% say they live paycheck to paycheck. The parallel 2003 MetLife Study of Employee Benefit Trends (2003) found that 52% of employees surveyed report they manage their finances by living paycheck-to-paycheck. Among those with a household income of less than $30,000, 87% say they live paycheck-to-paycheck and 65% of those earning $30,000 to $49,999 say the same. Among people who earn $75,000 or more a year, 34% live on the edge financially (Yip, 2003). More 21- to 30-year-olds than 41 to 50-year-olds live paycheck to paycheck; however, 51% of those nearing or in the traditional retirement age range of 61 to 69 do, too. In a CIGNA survey (2004), 39% of employees feel they are "underwater" financially, stating that they can barely keep up with bills. As a result of these bills, many people reported they had little discretionary income to save for college or retirement. More than two-thirds (68%) of parents with children under age 18 are extremely or very concerned about having enough money for their children's education. A Caravan poll found that nearly three in four adults age 18-64 (72%) said paying current bills (54%) or paying off debt (18%) were usually their main financial concerns each month (Caravan Saray, 2003). Women (78%) were more likely than men (65%) to be focused on paying current bills or debts. In a study of 16,000 employees working for a large insurance company who lived in eight geographic regions of the United States (Hira & Itote, 2001), over half (55.9%) reported that they handled large or unexpected expenses by using credit cards. Other coping mechanisms were borrowing from family or friends (16.4%) or not paying other bills (17.9%). Data on living paycheck-to-paycheck go back a few years. A revealing question on a 1996 poll reported by The Washington Post (Chandler & Morin, 1996) found that 75% of Americans recently faced at least one significant financial problem (e.g., unable to save for future needs, delaying medical care, communications from a collection company). A poll reported that same year in USA Today (Coping, 1996) noted that two-thirds of Americans indicated they had trouble paying bills and worried about money. Stress About Retirement. The American Express Retirement Services' 2004 National Survey on Financial Stress and Retirement Savings found that 44% were stressed about retirement. The stress levels by income groups were: 30% up to $30,000; 22% $30,000-$50,000; 22% $50,000-$75,0000; 17% $75,000-$100,000; and 9% $100,000 or more (Field & Vogt, 2004). The American Express study found that people's financial stress in 2004 is very similar to what was found in 2002. In 2004, 22% reported that they were either very interested (14%) or somewhat interested (7%) in financial advice on debt consolidation (21% in 2002). A Hewitt Associates survey of 5,000 employees (Survey Findings: Your Financial, 2005) found that "employees lack very basic knowledge of their 401(k) plans." Half of workers "say they are less than knowledgeable or not knowledgeable about investing." A MetLife study (With fear of outliving, 2004) found that one out of four employees (25%) have not done any specific retirement planning. Thirty-one percent say they are "on track" for reaching retirement goals, 30% are somewhat behind and 23% are significantly behind. Nearly half (48%) believe they will have to work full- or part-time in retirement. Among employees in the 41-to-60 year age group, only 4% have reached their retirement goals. In this age group, 48% of employees say that outliving their savings as the greatest retirement fear. Confirming findings are in the 2004 MetLife Study of Employee Benefit Trends (2004) of employees as similar numbers report being extremely concerned about outliving their retirement money and only 24% report they are on track for reaching retirement savings goals. A poll by Putnam Investments found that nearly half (46%) of current workers are resigned to accepting that they will struggle financially in retirement (Many workers, 2004), and another 13% believe they cannot amass enough to retire so they are not going to save for retirement at all. In a CIGNA (2004) survey of retirement awareness, 47% said they were either confused, apathetic or felt their retirement planning situation was futile. A Principal Financial Group survey of American workers found the average expected retirement age was 65, although 20% did not plan on retiring (The Principal, 2004). More than half (53%) expected that their standard of living in retirement would decline. Seven in ten (71%) did not have a plan for transitioning retirement savings into a stream of income in retirement. A Thrivent study found that more than half of non-retired Americans had either not yet begun saving for retirement or reported they had saved less than $10,000 (Thrivent Financial, 2004). Sixty-two percent had never estimated how much they needed to save for retirement. Sixty percent of adults were not confident that Social Security would exist when they retire (Caravan Saray, 2004). The percentages lacking confidence varied for different age groups: 55-64 years (30%), 45-54 (55%), 35-44 (70%), 25-34 (76%), and 18-24 (53%). One professional woman summed up the challenge of saving for retirement with the comment that "Life just gets in the way of saving" (Duka, 2004). Lack of Confidence About Ability to Manage Personal Finances An AARP study (Block, 2004) found that more than a quarter of baby boomers described themselves as worse money managers than their parents. A Roper Starch Worldwide survey (Stoneman, 1998) found 82% of low-income adults lacked confidence in their ability to plan for their family's future. Even 64% of those in the highest income group lacked confidence. Health and Stress About Personal Finances are Related Health is negatively affected by financial stress (Drentea & Lavrakas, 2002; Hendrix, Spencer & Gibson, 1994; Peirce, Frone, Russell & Cooper, 1994). Financial stress negatively impacts both physical and psychological health (Kim & Garman, 2003; O'Neill, Xiao, Sorhaindo, & Garman, in press). Both the amount of credit card debt and stress regarding overall debt are associated with health (Drentea & Lavarkas, 2000). A poor debt-to-income ratio is associated with poor health. Having more stress about overall debt was associated with worse health. Consumer indebtedness for such things as housing, home entertainment systems, appliances, vehicles, and student loans may be a "chronic strain on an individual's financial well-being, and ultimately emotional well-being" (Drentea & Lavarkas, 2000). Perceived financial security has been found to be a significant predictor of emotional distress (Jackson, 1997). A Family Credit Counseling Service survey (Research Report: Financial Stress Survey, 2004) of a nationally representative sample of 1,590 adults who carry credit cards found that half (50.8%) said that at times they can't sleep because of stresses about personal finances. Over one-third said it was hard to concentrate. Another 29.1% said they sometimes feel sick to their stomachs, and 26.3% reported that they get headaches. Almost one in ten (8.1%) reported they went to a doctor because of their financial distresses. One-quarter reported never having any physical effects. One study (Kim, Garman & Sorhaindo, 2003a 2003b) examined the relationships among credit counseling, financial behaviors, financial stressor events, perceived financial well-being, and health among clients of a large credit counseling organization in a one-year follow-up study over a time period of 18 months. Credit counseling and participation in a debt management program, both designed to improve one's personal finances, reduced financial stress and improved people's perceived financial well-being and health. A study by Bagwell (2000) found more than half (57%) of new credit counseling clients reported their health status being negatively affected by their financial problems. Of those, 52% reported general stress, anxiety and worry, 23% reported headaches, 18% general health problems, 13% sleeping disorders, and 12% stomach problems. An illustrative client comment was "I feel very stressed mainly because I do not see any solution to our financial situation. Headaches, depression and poor diet is [sic] the results of worrying." Another wrote, "Yes, I lose a lot of sleep. I get all these problems on my mind. Feel sick a lot, at times, when I do sleep some it's the first think [sic] on my mind and I feel so depressed, I don't even want to get out of bed." Examples of specific health problems associated with finances that were reported by financially distressed employees (O'Neill, Xiao, Sorhaindo, & Garman, in press) are: "Staying behind on bills made me very nervous." "I can't sleep because of worrying about paying bills." "Caused anxiety and depression to be worse than it was." "Stressed out, overwhelmed with anxiety." "Could not afford to go to doctor when I was sick." "Can't afford to eat healthier." "I have high blood pressure from the stress." "Cost of medication." "I have been depressed and gained weight." "Stress, catch sickness easier." A study of a large number of new credit counseling clients found they reported poorer health than the general population (Garman, 2004a). Forty percent of new credit counseling clients report their health has been negatively affected by their financial problems. Three-quarters of this 40% specified the nature of their problem, and the most cited problem was stress followed by sleep disorders. The range of health for credit counseling clients was: very good, 24%; good, 43%; satisfactory, 27%; and poor, 7% (Garman, 2004a). This contrasts with the health reported by the general population by the Gallup Organization (Personal health issues, 2001): Excellent Health Good Health Fair Health Poor Health General Population 29% 49% 17% 5% Credit Counseling Clients 24% 43% 27% 7% Excellent, 29%; good, 49%; only fair, 17%; and poor, 5%. Comparing the responses on the two 4-point continuum scales with the Gallup categories provides the following: Excellent Good Fair Poor Health Health Health Health General Population 29% 49% 17% 5% Credit Counseling Clients 24% 43% 27% 7% Encouragingly, 43% report that health improved soon after enrolling in a debt management program of a credit-counseling agency (O'Neill, et al, in press). . The relationship between poor health and serious financial distress suggests provocative clues that should be further investigated, particularly by the health care industry, employers, governments, and others involved in paying the costs for medical care. Distress About Health Care Costs and Bills "One-half of Americans say they have found medical bills to be a source of financial stress within the past two years (18% major source; 32% minor source." Data are from the 2003 Health Confidence Survey conducted by the Employee Benefit Research Institute and Mathew Greenwald and Associates, Inc., using data from their 1998 through 2003 Health Confidence Surveys (2003 Health Confidence Survey). Data from the most recent Health Confidence Survey (2004 Health Confidence Survey) found one-quarter of people experiencing medical care cost increases reduced retirement savings contributions because of medical costs. One-quarter reports, "They have used up most or all of their savings to pay health bills." The Employee Benefits Research Institute report titled Financial Stress Related to Health Care Costs (Financial Stress Related, 2003) using information from the 2003 Health Confidence Survey found that more than 4 in 10 (41% - up from 35% in 2002) are "not too confident" or "not at all confident" about being able to afford health care in the next 10 years or until age 65 when they become eligible for Medicare. Nearly half (up from 44% in 2002) are "not too" or "not at all" confident in their ability to afford health care once they are eligible for Medicare, without financial hardship. The results of a study on increasing health care costs by American Express Retirement Services (Field & Vogt, 2001) found that "73% of workers responded they were either somewhat or very concerned about how rising health care costs might impact their ability to fund their retirement and other financial goals." 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US Q1 credit card delinquencies stay at record high (2003, June 26). Reuters. Taken on June 22, 2004 from http://www.forbes.com. VA mortgage debt-to-income ratio (2005). VA loans.com. Taken on January 15, 2005 from http://www.valoans.com. Yip, P. (2003, November 24) Focus on savings, not spending. Dallas Morning News, 4D. Yochim, D. (2001). Our credit crunch. The Motley Food Credit Center. Taken on January 21,2004 from http://www.fool.com. Warren, E., Thorne, D., & Sullivan, T. (2001, September). Young, old and in between: Who files for bankruptcy? Norton Bankruptcy Law Advisor, Issue # 9A. Warren, E., & Tyagi, A. W. (2003). The Two-Income Trap: Why Middle-Class Mothers and Fathers are Going Broke. NY: Basic Books. Warren, E., & Tyagi, A. W. (2004, February 15). Digging out of debt. Orlando Sentinel, G-1. Weisman, R. (2002). Personal financial stress, depression and workplace performance. Financial stress and workplace performance: Developing employer-credit union partnerships (pp51-65). A Colloquium at the University of Wisconsin-Madison. Madison, WI: Center for Credit Union Innovation and Filene Research Institute. Winter, M., & Morris, E.W. (1983). Used resources, met demands and satisfaction. Paper presented at the annual meeting of NCR-116 (Family Resource Management), Ames: IA. With fear of outliving retirement savings, nearly half of all employees anticipate working during their golden years (2004, February 4). Press release, MetLife. Taken on March 4, 2004 from http://www.metlife.com. www.myfico.com. Wolk, M. (2004, January 16). The pitfalls of plastic: Credit-dependent Americans pushed to the edge. MSNBC's Eye on the Economy. Zuckerman, M. B. (2004, March 15). America's high anxiety. U.S. News & World Report. Taken on March 30, 2004 from http://www.usnews.com. Internet Resources to Build Wealth Barbara O'Neill, Ph.D., CFP® Extension Specialist in Financial Resource Management March 23, 2005 Below is a list of federal government or non-profit organization online resources that can help users build wealth: America Saves www.americasaves.org Provides information about savings topics such as finding money to save, building wealth through homeownership, and compound interest. Information is also provided about U.S. savings campaigns. American Savings Education Council/Choose to Save Partnership www.asec.org (Click on "Savings Tools") Includes downloadable publications and interactive online tools such as the Ballpark Estimate retirement savings calculation worksheet, the Retirement Personality Profiler, and financial planning calculators. Certified Financial Planner Board of Standards, Inc. (CFP Board) www.cfp-board.org Provides consumer information about financial planning topics and information about how to find a certified financial planner in a particular geographic region. Federal Citizen Information Center www.pueblo.gsa.gov Provides an online source of federal government publications, including both health and personal finance topics. Financial Security in Later Life Web Site www.csrees.usda.gov/fsll (Click on "Tools For Consumers") Cooperative Extension System site includes links to a variety of online financial education resources with a focus on planning for retirement and long-term care. Guidebook to Help Late Savers Prepare for Retirement www.nefe.org/latesavers/index.html Provides a downloadable 51-page booklet that describes over a dozen catch-up strategies for middle-aged late savers who are trying to make up for lost time. Internal Revenue Service Web Site www.irs.gov Provides information on federal income tax topics and downloadable forms and publications. Investing For Your Future www.investing.rutgers.edu Cooperative Extension System basic investing home study course includes 11 units on investment topics, a study guide, monthly investment messages, and links. Investment Company Institute www.ici.org Provides information about mutual fund investing from the industry's trade association. My Money.Gov Web Site www.mymoney.gov Financial Literacy and Education Commission website contains financial information in English and Spanish from a variety of federal government agencies on the following personal finance topics: budgeting and taxes, credit, financial planning, home ownership, home equity, mortgages, paying for education, privacy and fraud, responding to life events, retirement planning, saving and investing, and starting a small business. Users can download these publications from the links provided and can also order a free My Money Toolkit, sent via U.S. mail. National Association of Investors Corporation www.better-investing.org NAIC website provides information about investing in stock and resource materials for investment clubs. National Endowment For Financial Education www.nefe.org NEFE website contains information about NEFE financial education programs and publications for youth and adults. National Foundation for Consumer Credit www.nfcc.org Includes information about credit-related topics and information about how to find a non-profit credit-counseling agency in a particular geographic region. PowerPay http://extension.usu.edu/cooperative/powerpay/ or http://powerpay.org Utah State University Cooperative Extension website provides a debt reduction calendar and estimated time and cost savings for users who continue to pay the same amount to creditors monthly. When a creditor is repaid, the monthly payment that was previously paid is added to the monthly payment due to a remaining creditor. Users input their personal data (e.g., name of creditors, outstanding balance, monthly payment, and interest rate) for a personalized analysis. Rutgers Cooperative Research and Extension Money and Investing Web Site www.rce.rutgers.edu/money2000 Includes dozens of downloadable personal finance publications, online presentations, self-assessment quizzes, conference summaries, federal marginal tax rate tables, and other financial education resources for consumers. Save For Your Future www.saveforyourfuture.org or www.asec.org/sfyf Website includes publications, posters, and online calculators from a 2003 national campaign to promote retirement savings. U.S. Savings Bonds Web Site www.savingsbonds.gov or www.easysaver.gov Provides information about how to purchase U.S. savings bonds and current rates of return. 1 Lander, D. A. (2004). "It 'is' the best of times, it 'is' the worst of times": A short essay on consumer bankruptcy after the revolution. The American Bankruptcy Law Journal (78)2, 201-220 (quote page 209). 2 Howard, C. (2001). Get Clark Smart. Hyperior: New York. 3 Gramlich, E. M. (2004, May 20). Workplace financial education: Remarks by Governor Edward M. Gramlich. Speech to the second meeting of the Financial Literacy and Education Commission, Washington, DC. Taken on May 20, 2004 at http://www.federalreserve.gov/boarddocs/speeches/2004/20040520/default.htm. 4 Field, R., & Vogt, V.A. (2004, April 1). Employee financial stress & investment advice needs. American Express Retirement Services. Quote page 16. 5 The role that financial education companies play in participant behavior in 401(k) plans (2004, November). Ernst & Young LLP Human Capital Practice, 13. 6 Fewer than 10% of credit counseling clients declare personal bankruptcy (Elliehasuen, Lundquist, & Staten, 2003; Staten, Elliehausen, & Lundquist, 2002). Click here to download this article (PDF). Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[10]=new Array("http://www.personalfinancefoundation.org/questions/key-questions.html","Key Questions Topics","","Home About Us ROI Model Research Press Contact Us Key Questions Key Questions Topics: What Will a Quality Financial Literacy Program Accomplish for Employees? What are the Top Ten Financial Behaviors? How Can Employers Help Employees Improve Their Personal Financial Behaviors? Where Should an Employee Financial Education Program Begin? Should Financial Education be an Employee Benefit? What Communications Strategies Should Be Used to Motivate Employees To Develop Positive Financial Behaviors? Will a Quality Financial Literacy Program Improve the “Bottom Line? What Is PFEEF’s Mission? 1. What Will a Quality Financial Literacy Program Accomplish for Employees? A quality financial literacy program should help your employees practice good financial behaviors. Over time these behaviors will result in positive changes in their financial lives. The changes include increased assets, decreased liabilities, increased net worth, reduced financial distress, and improved financial wellbeing. As a result they will be better able to reach their financial goals including a successful retirement. A quality workplace financial program should provide employees access to help with their overall financial fitness at every stage of their careers. This helps employees live better financial lives as well as maximize savings for retirement. People can get ahead financially only by sacrificing some current spending to save and invest and by practicing good financial behaviors. 2. What are the Top Ten Financial Behaviors? There are many good personal financial behaviors but the most fundamental truth is that one must spend less than one earns, thus sacrificing some spending to invest for one’s future. Additional good financial behaviors include: Establishing measurable financial goals and realistic plans to achieve them; Building and maintaining an emergency fund equal to three months of take-home pay; Using a budget to control spending for regular and irregular expenses; Maintaining adequate insurance for property, liability, life and health exposures; Paying credit card charges in full every month and keeping non-mortgage debt payments below 15 percent of disposable monthly income; Saving for retirement through an employer’s tax-sheltered plan at least the amount required to obtain the largest matching contribution and with a Roth IRA account if an employer’s plan is insufficient to achieve a secure retirement; Leaving retirement money where it belongs in retirement accounts prior to actually retiring; Recognizing that the closer one is to a financial goal that less risk should be taken, and conversely; Preparing, and updating as needed, a will, advance directive documents and beneficiary and ownership designations on all financial accounts. 3. How Can Employers Help Employees Improve Their Personal Financial Behaviors? Many employees realize that they have some financial behaviors that need changing. To succeed they must believe that they can successfully change those behaviors, and they must have a plan to change. Employers can help by giving employees easy access to quality financial programs. Such programs go well beyond simply explaining an employee benefits package and address the key decisions that must be made and how to integrate employee benefits into the broader pattern of good financial behaviors. A great place to begin is to have employees fill out PFEEF’s Personal Financial Wellness (PFW® ) scale to determine their financial wellness scores. 4. Where Should an Employee Financial Education Program Begin? Financial programs should be based on the level of employee financial distress. The suggested topics for a quality financial program are listed below. The topics should differ based on employees’ reported levels of financial distress. The financial program provider working with the employer also can help make appropriate decisions about which financial program information should be emphasized with which groups of employees. Their scores on the PFW Scale™ are on a continuum ranging from 1 (overwhelming financial distress/lowest financial well-being) to 10 (no financial distress/highest financial well-being.) High financial distress/Poor financial wellness (PFW scores = 1, 2, 3, and 4) Setting financial goals Individual budgeting, credit education, and credit recovery counseling Benefits information Credit union and bank affiliations providing preferred services to employees Coaching in how to begin preparing for a financially successful retirement Average financial wellness/average financial distress (PFW 5 and 6) Benefits information Credit union and bank affiliations providing preferred services to employees Money coaching on critical wealth management practices Tax preparation education Mortgage lender education for achievement of homeownership goals Insurance education Investment education and advice Retirement planning education that explains the various components of post-work income and how to continue preparing for a financially successful retirement Estate transfer workshops Post-retirement financial education High financial wellness/low financial distress (PFW 7, 8, 9, and 10) Retirement planning education that explains the various components of post-work income and how to continue preparing for a financially successful retirement Money coaching providing direct education on critical wealth management practices Investment advice Tax preparation education Estate transfer workshops and individual counseling Post-retirement financial education Click here for more information (PDF). 5. Should Financial Education Be An Employee Benefit? The employer's benefits package is at the very core of financial success for an employed person. Those who make wise choices among benefit options save money, reduce income taxes, and increase retirement savings while securing benefits that genuinely fit their needs. Such decisions lead to better personal money management behaviors that maximize the likelihood of financial success throughout their lives. However, financial stress and the lack of basic financial literacy are the major reasons why employees do not make wise choices among benefits options. Research shows that 30 million American workers-1 in 4-report they are seriously distressed and dissatisfied with their financial matters. Financially unwell employees do not make the best decisions for themselves regarding retirement planning, pre-tax health and dependent care and other employee benefits. 6. What Communications Strategies Should Be Used to Motivate Employees To Develop Positive Financial Behaviors? PFEEF is researching how to motivate employees who are not yet ready to take that first step toward a better financial life. The strategies being tested are based on the successful Stages of Behavior Change Model developed and tested by Prochaska and colleagues for more than 30 years. The model can target employees for financial education based on their readiness for change. Click here for more information (PDF). 7. Will a Quality Financial Literacy Program Improve the “Bottom Line”? PFEEF has sponsored and conducted research that shows the bottom line benefits of quality employee financial education programs. You can obtain an estimate of these benefits by using the handy PFEEF ROI Calculator® by clicking here. You can obtain a more detailed calculation by contacting one of the quality providers featured on the PFEEF website. A detailed report will use your company’s data for absenteeism, turnover rates, training costs and the PFW Scale™ results for your employees for a tailored made ROI calculation. 8. What is PFEEF's Mission? Click here for more information (PDF). Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[11]=new Array("http://www.personalfinancefoundation.org/speeches/speeches-list.html","Speeches","","Home About Us ROI Model Research Press Contact Us Speeches National Speakers Bureau Click here for more information. Speeches Using a Return-on-Investment Model to Promote Financial Education in the Workplace, November 2009, Association for Financial Counseling and Planning Education, Garman, Prawitz, Kim, O'Neill, Richter Read more (PowerPoint)... Workforce Transition From Financial Stress to Financial Wellness, May 2009, Gulf Coast (Texas) Symposium on HR Issues, Garman Making the Case for Financial Education in the Workplace, May 2009, Third Annual Common Wealth of Pennsylvania Symposium, Garman Increase the Bottom Line by Helping Distressed Employees During Financially Challenging Times, April 2009, Human Resources Association of Central Ohio, Garman Increase the Bottom Line and Prove It, Louisiana Health Coalition Alliance, February 2009, Garman Increase the Bottom Line by Helping Distressed Employees During Financially Challenging Times, November 2008, United States Navy AFCPE Pre-Conference, Garman Using PFEEF’s Projected Return-on-Investment in Challenging Economic Times, October 2008, Employee Assistance Professionals Association, Garman Accountants and Workplace Financial Education, August 2008, National Council of Philippine American Canadian Accountants, Washington, DC, Garman Increase the Bottom Line by Helping Distressed Employees During Financially Challenging Times, Society of Human Resource Management, August 2008, Webcast, Garman Read more... SHRM Webcast E-Newsletter Summary Employee Personal Finances and Health Impact the Employer's Bottom Line, Health Benefits Conference & Expo, January 2008, Tampa, Garman Read more (PowerPoint)... Lifestyle Risk Factors, Health Status, and Financial Distress: Framing Interventions Using the Transtheoretical Model of Change, November 2007, Association for Financial Counseling and Planning Education, Tampa, Prawitz Progress in Measuring Changes in Financial Distress and Financial Well-Being as a Result of Financial Literacy Programs: Reports from Four States, Association for Financial Counseling and Planning Education, November 2007, Tampa, Garman The Need for Workplace Financial Education and Some Solutions, Federal Reserve Board of Dallas, September 2007, Dallas, Garman Read more (PowerPoint)... Use of the Financial Wellness/Distress Assessment Tool and Its use in Counseling Clients, September 2007, Columbus, Garman Pension Protection Act Update, International Society of Certified Employee Benefit Specialists, September 2007, Seattle, Garman Read more (PowerPoint)... Fiduciary Advisor: A Holistic Solution, August 2007, Integreated Benefits Solutions' Executive Day Out at the Ballbark, Houston, Garman Employers Can Profit by Meeting the Educational Desires of Financially Distressed Credit Counseling Clients, August 2007, Financial Counseling Network, Orlando, Garman Read more (PowerPoint)... Workplace Financial Education: Insight into Best Practices, Worksite Wellness Committee of the Consortium for a Healthier Miami-Dade, July 2007, Miami, Garman Why There are Bottom-Line Benefits to Financial Education, April 2007, The Educated Investor Conference, San Diego, Garman Progress in Measuring Changes in Financial Distress and Financial Well-Being as a Result of Financial Literacy Programs, April 2007, American Council on Consumer Interests, St. Louis, Garman Financial Literacy and Workplace Productivity, April 2007, Georgia Consortium for Financial Literacy, Garman Read more (PowerPoint)... Retirement Planning and Poor Personal Finances, March 2007, Alabama Association of Family & Consumer Sciences, Garman Retirement Planning and Personal Finances, 2006, National Conference on Ageing and National Development: Improving Quality of Later Life Organized by University of Putra Malaysia Institute of Gerontology, Employees Provident Fund, and United Nations Population Fund Marriott Putrajaya Hotel, Putrajaya, Malaysia, Garman Changes in Health, Negative Financial Events, and Financial Distress/Financial Well-Being for Debt Management Program Clients, 2006, Association for Financial Counseling and Planning Education, San Antonio, O'Neill Small Steps to Health and WealthT: The Total Package, 2006, American Council on Consumer Interests, Baltimore, O'Neill Driving Better Participant Outcomes: Taking the Holistic Approach to Advising Employees, 2006, P&I East Coast Defined Contribution Conference, Palm Beach Gardens, FL, Garman-Thomson-Slade-Mullin-Coopersmith Read More (PowerPoint)... National Norming Data for Financial Well-Being and Financial Distress, 2005, Association for Financial Counseling and Planning Education, Scottsdale, AZ, Sorhaindo-Kim-O'Neill-Prawitz-Garman Read More (PowerPoint)... National Norms on Financial Distress, 2005, 51st Annual Conference of the American Council on Consumer Interests, Columbus, OH, Garman-Sorhaindo-Prawitz-Osteen-Kim-O'Neil-Drentea-Haynes-Weisman Health, Financial Well-being, and Financial Practices of Financially Distressed Consumers, 2005, 51st Annual Conference of the American Council on Consumer Interests, Columbus, OH, O'Neill-Sorhaindo-Xiao-Garman Fixing 401(k) Education: The Glass Need Not Remain Half Empty, 2005, 13th Annual Defined Contribution/401(k) East Coast Conference, Miami, Garman Workplace Financial Education: What Does the United States Federal Reserve Board Believe?, 2004, Financial Literacy and Education Commission, Washington, Gramlich Read More... Super Literacy: From Bamboozlement to Engagement--The Bottom Line for Funds and Employers, 2004, Association of Superannuation Funds of Australia, Adelaide, Australia, Garman Read More (PowerPoint)... Retirement Education: Educating Pension Plan Participants, 2004, Pension Research Council Symposium at the Wharton School in Philadelphia, Pennsylvania, Arnone Read More (PDF)... Financial Education is Good for the Employer's Bottom Line, 2004, Enhancing Retirement Education Programs, World Research Group, Scottsdale, Arizona, Garman Financially Distressed Credit Counseling Clients and the InCharge Financial Distress Scale, 2004, Eastern Family Economics and Resource Management Association, Tampa, Florida, Sorhaindo The Effects of Credit Counseling on Financial Stressors, Behaviors and Well-being, 2003, Association for Financial Counseling and Planning Education, Savannah, Georgia Sorhaindo-Garman-Kim The Role of 401(k) Plans for Pre-Retirees in the Context of Total Wealth, 2003, National Association for Variable Annuities, Orlando, Florida, Garman Financial Education, 2003, Legislative Conference of the Congressional Black Caucus, Greenspan Read More... Increase Profitability by Improving Employee Personal Financial Well-Being, 2002, Senior Human Resources Executives, Tampa, Garman The Educational Desires of Financially Distressed Credit Counseling Clients, 2002, Scottsdale, Arizona, Bailey-Sorhaindo-Garman Personal Financial Stress, Depression and Workplace Performance, 2002, Madison, WS, Weisman Treasury Secretary Paul H. O'Neill Keynote Address to Jumpstart Coalition for Personal Financial Literacy, 2002, JumpStart Coalition for Personal Financial Literacy, Washington, D.C., O'Neill Read More... Remarks by Chairman Alan Greenspan, 2002, Ninth Annual Development Summit, The Greenlining Institute, Garman Read more (Word)... Improving Employee Personal Financial Wellness Increases Profitability, 2001, Filene Research Institute, Madison, Wisconsin, Garman Successes in Workplace Financial Education, 2000, American Council on Consumer Interests, San Diego, California, Garman Measuring the Impact of Workplace Financial Education and Advice: A Pre-Post Design, 1999, Personal Finance Employee Education, Roanoke, Virginia, Kim Read More (PowerPoint)... Deploying Financial Education Through the Right Channels, 1999, The Conference Board, New York and Chicago, Garman Selling the Value of Employee Financial Education to Management, 1999, Personal Finance Employee Education Conference, Blacksburg, Virginia, Arnone Read More... The Business Case for Workplace Financial Education-Personal Financial Wellness and Productivity, 1998, The Conference Board, Atlanta and San Diego, Garman PowerPoint PDF Benefits of Financial Education Programs: How and Why Your Organization Can Profit from Education, 1998, Financial Education Strategies Conference, Toronto, Canada, Garman Read More... Worker Productivity and Money Matters, 1997, National Foundation for Credit Counseling, Atlanta, Garman Read More... Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[12]=new Array("http://www.personalfinancefoundation.org/providers/quality-providers.html","Quality Providers","","Home About Us ROI Model Research Press Contact Us Quality Providers The following financial education providers are among the very best in the United States of America. Their workplace financial information and education programs emphasize basic financial literacy that results in improvements in employees' personal financial behaviors, decreases in their financial distress and improvements in employee financial well-being. Such employees often make better use of their employer benefits programs and increase their contributions to their employer-sponsored retirement programs. All PFEEF's Quality Providers offer financial programs that emphasize financial information and education on money management, paying down debts, and saving and investing. Click on the the following terms for the type of financial program of interest for information about "PFEEF's Quality Providers." Click on the the following terms for the type of financial program of interest for information about the appropriate "PFEEF's Quality Providers." Click for table listing all U.S. Quality Providers Workshops and Seminars Money Coaching Online and DVD Education Credit Counseling/Bankruptcy Education Financial/Retirement Advice Certifications Financial Tools and Information Some Providers (Non-United States) of Workplace Financial Education Programs Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[13]=new Array("http://www.personalfinancefoundation.org/resources/best-resources.html","Resources","","Home About Us ROI Model Research Press Contact Us Resources Certification Programs Click here for more information. Personal Finance Topics: Money Management Credit College Savings Investing Retirement Financial Literacy Government Foundations, Institutes and Centers Professional and Trade Associations Calculators and Websites PFEEF is a member of: 1. Money Management Money 101 (Money Magazine) http://money.cnn.com/pf/101 Includes a 23-lesson personal finance course from the writers at Money magazine. Users can read the entire course or choose lessons of interest. Topics include: making a budget, basics of banking and saving, basics of investing, investing in stocks, investing in mutual funds, investing in bonds, buying a home, controlling debt, saving for college, kids and money, asset allocation, and taxes. MSN.Money www.moneycentral.msn.com Includes daily financial updates and stock quotes and feature articles on financial topics such as insurance, credit, income taxes, and college and retirement planning. Rutgers Cooperative Extension Money and Investing www.rce.rutgers.edu/money2000 Includes dozens of downloadable personal finance publications, online presentations, self-assessment quizzes, conference summaries, federal marginal tax rate tables, and other financial education resources for consumers. The interactive Rutgers Cooperative Extension Financial Fitness Quiz can be found at www.rce.rutgers.edu/money/ffquiz. Smart About Money (National Endowment for Financial Education) www.smartaboutmoney.org Contains financial information organized around major life events, interactive self-assessment quizzes, and links to a comprehensive resource center of financial education materials. Workplace Financial Education http://www.tscpa.org/general/moneyu/index.asp Brings financial literacy messages to employees via 11 excellent downloadable resources available to employers for free in 4 formats: (1) articles (Word documents), (2) table tents for break rooms, (3) flyers for bulletin boards, and (4) paycheck inserts. The 11 topics include budgeting, disaster planning, identity theft, surviving divorce and starting over financially, using your tax refund wisely. Wise Up A Financial Planning Handbook for Generation X Women (U.S. Department of Labor) www.wiseupwomen.tamu.edu/index.php Provides a 9-unit financial course targeted toward young women in their 20s through early 40s. Each chapter contains worksheets for readers to apply information to their lives. Women's Institute for Financial Education (WIFE) www.wife.org Includes reviews of personal finance books, feature articles on personal finance topics, online video clips, and archived WIFE e-newsletters, all designed to improve the financial expertise of women. 2. Credit Annual Credit Report www.annualcreditreport.com Provides a free credit report from the three major credit bureaus- Equifax, Experian, and TransUnion- according to federal law. This centralized Website allows consumers to request a free report once a year. There is also information available to request a free annual credit report by telephone or mail. Association of Independent Consumer Credit Counseling Agencies http://www.aiccca.org/ Includes information about credit-related topics and information about how to find a non-profit credit-counseling agency in a particular geographic region. National Foundation for Consumer Counseling www.nfcc.org Includes information about credit-related topics and information about how to find a non-profit credit-counseling agency in a particular geographic region. PowerPay© "Debt Reduction Analysis" (Utah State University Cooperative Extension) http://extension.usu.edu/cooperative/powerpay/ or http://powerpay.org Provides a debt reduction calendar and estimated time and cost savings for users who continue to pay the same amount to creditors monthly. When a creditor is repaid, the monthly payment previously paid is added to payments due to remaining creditors. Users input personal data (e.g., name of creditors, outstanding balance, monthly payment, interest rate) for an analysis and debt repayment schedule. 3. College Savings College Savings Plan www.savingforcollege.com www.collegesavings.org Provides information about state-run 529 college savings plans. 4. Investing Investment Company Institute www.ici.org Provides information about mutual fund investing from the industry's trade association. Investing For Your Future (Cooperative Extension System basic investing home study course) www.investing.rutgers.edu Includes 11 units on investment topics, a study guide, monthly investment messages, and links. National Association of Investors Corporation (NAIC) www.better-investing.org Provides information about investing in stock and resource materials for investment clubs. 5. Retirement America Saves www.americasaves.org Provides information about savings topics such as finding money to save, building wealth through homeownership, and compound interest. Information is also provided about U.S. savings campaigns. American Savings Education Council/ Choose to Save Partnership www.asec.org (Click on "Savings Tools") Includes downloadable publications and interactive online tools such as the Ballpark Estimate retirement savings calculation worksheet, the Retirement Personality Profiler, and financial planning calculators. Financial Security in Later Life (Cooperative Extension System) www.csrees.usda.gov/fsll (Click on "Tools for Consumers") Includes links to a variety of online financial education resources with a focus on planning for retirement and long-term care. Guidebook to Help Late Savers Prepare for Retirement www.nefe.org/latesavers/index.html Provides a downloadable 51-page booklet that describes over a dozen catch-up strategies for middle-aged late savers who are trying to make up for lost time. Planning For a Secure Retirement (Purdue University Cooperative Extension) www.ces.purdue.edu/retirement Contains a distance learning course on wealth accumulation and retirement planning that consists of ten lessons and dozens of interactive links to calculators (e.g., for life expectancy) and other resources. Retirement Personality Profiler (American Savings Education Council) www.asec.org/profiler Contains an interactive self-assessment quiz that classifies users into one of five distinct retirement planning personalities (e.g., savers, and deniers). Based on this information, users can better understand their financial decision-making style and identify workable strategies to improve their financial security. Save For Your Future www.saveforyourfuture.org or www.asec.org/sfyf Includes publications, posters, and online calculators from a 2003 national campaign to promote retirement savings. 6. Financial Literacy InCharge Education Foundation COPET Scale (InCharge Education Foundation) http://www.inchargefoundation.org/surveys/cope The valid and reliable InCharge COPE Scale is the same of the PFEEF Personal Financial Wellness Scale™. Personal Financial Wellness Scale™ (Personal Finance Employee Education Foundation) http://www.personalfinancefoundation.org/scale/well-being.html The normed and validated PFEEF Personal Financial Wellness Scale™ provides a mechanism to assess one’s level of current financial distress. Rutgers Cooperative Extension Financial Fitness Quiz www.rce.rutgers.edu/money/ffquiz The interactive Rutgers Cooperative Extension Financial Fitness Quiz provides a mechanism for how well a person manages their money. 7. Government Federal Citizen Information Center www.pueblo.gsa.gov Provides an online source of federal government publications, including both health and personal finance topics. Federal Trade Commission www.ftc.gov One of the FTC's main activities is to prevent fraud, deception, and unfair practices in the marketplace. Financial Literacy and Education Commission www.mymoney.gov Contains financial information in English and Spanish from a variety of federal government agencies on personal finance topics. Users can download these publications from links provided and can also order a free My Money Toolkit, sent via U.S. mail. Social Security Administration www.socialsecurity.gov Includes online calculators, contact information, and publications about Social Security. U.S. Savings Bonds www.savingsbonds.gov Provides information about how to purchase U.S. savings bonds and current rates of return. U.S. Securities and Exchange Commission www.sec.gov Includes links to investment publications and online assistance with investing and investment fraud questions. Scale. 8. Foundations, Institutes and Centers Institute of Consumer Financial Education www.financial-education-icfe.org Includes information on credit, debt, and other financial topics, as well as an online bookstore. National Endowment for Financial Education (NEFE) www.nefe.org Contains information about NEFE financial education programs and publications for youth and adults. 9. Professional and Trade Associations Association for Financial Counseling and Planning Education http://www.afcpe.org/pages/page.cfm?page_id=11 Profit Sharing/401k Council of America http://www.psca.org/ 10. Calculators and Websites Click here for more than 150 websites. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[14]=new Array("http://www.personalfinancefoundation.org/marketing-tools/marketing-tools.html","Tools for Your Use","","Home About Us ROI Model Research Press Contact Us Tools for Your Use Provider Brochure Read more... Employer Brochure Read more... Videos to convince employers to provide workplace financial education "Hello. I'm Dr. E. Thomas Garman, Professor Emeritus and Fellow, Virginia Tech University." Transcript Click here to view the 6-minute presentation. Download the presentation. - 55 MB Draft Power Point Presentation for Employers Click here to download... Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[15]=new Array("http://www.personalfinancefoundation.org/exemplary-employers.html","Exemplary Employers","","Home About Us ROI Model Research Press Contact Us Exemplary Employers Anonymous Employer CF Industries MBNA Corporation McDonald's McLeod Health U.S. Navy Valero Energy Corporation Weyerhaeuser Exemplary Employers The “Exemplary Employers” recognized by the Personal Finance Employee Education Foundation are those who have genuinely recognized the importance and value of quality workplace financial education programs to both employees and the employer. Their multi-faceted financial programs reduce employees' financial distress and increase their personal financial wellbeing while also increasing voluntary contributions to employer-sponsored retirement programs. You are encouraged to contact these exemplary employers to learn more. Click on the employer’s name for a description of their financial program and contact information. Criteria for PFEEF's Exemplary Employers Read more (PDF)... "Motivating Employees to Change" Read more (PDF)... Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[16]=new Array("http://www.personalfinancefoundation.org/donorinfo.html","PFEEF Donor Information","","Home About Us ROI Model Research Press Contact Us Donor Information Donor Form Click here to download the Donor Form (PDF). List of Donors Click here for more information (PDF). Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[17]=new Array("http://www.personalfinancefoundation.org/scale/well-being.html","Personal Financial Wellness Scale™","","Home About Us ROI Model Research Press Contact Us Personal Financial Wellness Scale™ What's Your "Personal Financial Wellness" Score? Answer these eight questions to find out. About the Scale Click here for more information. Scale Uses and Policies Click here for more information (PDF). Approved List of 185 PFW Scale™ Users Click here for more information (PDF). Research Article on PFW Scale™ Development, Administration, and Score Interpretation. Click here for more information (PDF). Research Article on PFW Scale™ Validity and Reliability Click here for more information (HTML). Teach to the Test Click here for more information (PDF). PERMISSION FORM (SUBMIT ONLINE) Click here for more information (HTML). Online PFW Data Collection And Employer's Projected ROI Click here for more information (HTML). Testimonials on Using PFW Click here for more information (PDF). The PFW Scale™ has been modified for use in different cultures. It is currently used in Australia, Canada, The Gambia (Africa), India, Malaysia, Mexico, Philipines, South Africa, Thailand, and US Latino. Inquire if interested. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[18]=new Array("http://www.personalfinancefoundation.org/archives/newsletters.html","Archived Newsletters","","Home About Us ROI Model Research Press Contact Us Archived Newsletters Content Description Date The 2010 Retirement Confidence Survey (RCS), now in its 20th year 04/20/10 New Overdraft Rules from the Federal Reserve Effective July 1, 2010 03/16/10 SSA Releases Information on the New Financial Literacy Research Consortium 02/16/10 Employers show Deep Anxiety and Conflict about Aging Workforce 01/18/10 PFEEF's ROI Calculator Available Online Now - FREE 12/18/09 Impact of Market Activity on 401(k) Account Balances 12/04/09 Nearly Half of Job Changers Cash Out 401(k)s 11/23/09 EAP's Fighting Recession Depression 11/12/09 "Recession Causing Permanent Spending Cuts" 11/02/09 SHRM RESEARCH - Employees' Financial Stresses 10/22/09 Rising Health Insurance Costs: 1999, 2009, and 2019 10/08/09 AFCPE Conference Early-Bird Reservation Deadline Soon 09/25/09 Major Home Markets Predicted to Fall More 09/21/09 Financial Stress Can Make Overweight People Gain Even More Weight 09/09/09 Expert Addresses The Need For Financial Wellness In The Workplace 08/27/09 Employee Financial Problems Cost Employers $4.5 Billion Annually 08/17/09 PFEEF Announces the Projected Return-on-Investment Calculator 08/03/09 USA Today Snapshot - If You Were Given $1,000, What Would You Do? [Surprise! People are Finally Saving] 07/23/09 The Most Important Article You Will Read in 2009 07/02/09 Employees' Money Woes Filter into Workplace 06/25/09 Research: Actions Taken by Employees to Improve Personal Financial Wellness 06/16/09 Well-Diversified Portfolio Earned 6% From 1999-2008 06/11/09 Employers Grade Employees' Financial Literacy Poorly 05/26/09 5 Tips for Avoiding Foreclosure Scams 05/19/09 Financial Education in the Workplace: Motivations, Methods, and Barriers 04/28/09 McLeod Health Cited as PFEEF Exemplary Employer 04/17/09 Senior Finance Executives Overwhelmingly Support Quality Workplace Financial Programs 04/09/09 RESEARCH - 401(k)s Aren't Covering America 03/31/09 RESEARCH - Finances Running Low, Stress Running High 03/19/09 Challenges and Solutions for Health & Productivity Incentives and Disincentives 03/10/09 United Kingdom Pension Act Will Require Employers to Offer Pension 02/02/09 Research Priorties for Financial Literacy and Education 02/19/09 DOL ISSUES FINAL REGS ON INVESTMENT ADVICE 01/27/09 PFEEF Approved as 501(c)3 Nonprofit Public Charity 01/21/09 NYTimes Handy Calculator to Track Your Portfolio's Comeback 01/14/09 SHRM RESEARCH - Employees' Financial Stresses 01/08/09 PFEEF White Paper on "How to Motivate Employees to Change Personal Financial Behaviors" 12/08/08 Workers Cannot Afford to Save for Retirement 11/20/08 Article in "Investment Advisor" Cites Two PFEEF Board Members 10/28/08 Survey: Workers' Family Health Care Deductibles Jump 29% 10/21/08 FINAL REMINDER: Sign up for Tom's Webcast on PFEEF and ROI 10/14/08 Sign up for Tom's Webcast on PFEEF and ROI 10/07/08 "State of the State of the Credit Counseling Industry" 10/06/08 What are the "Most Pressing Financial Issues" Facing Americans Today? 09/15/08 Tom's "Dave Ramsey" TV Interview Available on Website 09/04/08 "Met Life Study of the American Dream" 08/28/08 "The American Dream is Slipping Further from Reach."  08/21/08 "How EAPs Can Combat the Negative Side Effects of Financial Problems" 08/11/08 "Numbers" 08/05/08 Employee Benefits Trends Show Interest in "All-Needs" Financial Planners in the Workplace 07/31/08 HR Magazine Says to Employers: "Ease the Burden of Employees' Debt!" 07/24/08 A Nation in Debt 07/14/08 Stress Over Debt Overtaking Health 06/19/08 Frightening Indicator About Today's Economy 06/09/08 Suggested Marketing Messages to Employers 05/08/08 Name That Disease Contest 04/16/08 Court Says 401(k) Participants Can Sue 03/27/08 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[19]=new Array("http://www.personalfinancefoundation.org/privacy.html","Privacy","","Home About Us ROI Model Research Press Contact Us Privacy Statement 1. Overview Thank you for visiting PFEEF and reviewing our Privacy Policy. Your privacy is important to us, and our policy is simple: we will collect no personally identifiable information about you when you visit the Web Site unless you choose to provide that information. This Privacy Policy does not describe information collection practices on other sites, including those linked to or from the Web Site. 2. What Type of Information We Collect The server on which the Web Site is located collects and saves only the default information customarily logged by web server software. Such information may include the date and time of your visit, the originating IP address, and the pages and images requested. 3. Children's Issues The Web Site is not directed to children under thirteen (13) years of age, and children under such age must not use the web site or services offered on it to submit any individually identifiable information about themselves. 4. 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Contact Information Questions or comments regarding the Web Site should be sent by: Address: Personal Finance Employee Education Foundation 9402 SE 174th Loop Summerfield, FL 34491 PFEEF Contact Page Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[20]=new Array("http://www.personalfinancefoundation.org/sitemap.html","Sitemap","","Home About Us ROI Model Research Press Contact Us Site Map Home What's Your Personal Financial Well-Being Level? USA Today says... Money Worries Hinder Job Performance Read more... Workers' Financial Stress May Hurt Productivity Read more... Employee Benefit News says... Employers Raising the Bar on Financial Education Read more... Worker Financial Distress Read more... Read full report (PDF)... How Employers Profit Video Video Transcript Click here to download this video. Size - 55 MB Power Point Presentation for Employers What is PFEEF All About? Read more... 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Thomas Garman Certification Programs Provider Brochure Employer Brochure Exemplary Employers Donor Information Donor Form (PDF) List of Donors (PDF) PFW Scale™ Information What's Your Personal Financial Well-Being Level? About the Scale Scale Uses and Policies (Word) Approved List of PFW Scale™ Users (PDF) Research Article on Scale Validity and Reliability (PDF) Teach to the Test (PDF) Permission Form (Submit online) Privacy Site Map Terms of Use Address: Personal Finance Employee Education Foundation 9402 SE 174th Loop Summerfield, FL 34491 PFEEF Contact Page Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[21]=new Array("http://www.personalfinancefoundation.org/terms-of-use.html","Terms of Use","","Home About Us ROI Model Research Press Contact Us Terms & Conditions These "Terms of Use" set forth the terms and conditions that apply to your use of PFEEF. By using the Web Site (other than to read this page for the first time), you agree to comply with all of the Terms of Use set forth herein. The right to use the Web Site is personal to you and is not transferable to any other person or entity. Copyrights and Trademarks A. All materials contained on the Web Site are Copyright 2006, 2007, 2008, 2009, 2010. All rights reserved. B. No person is authorized to use, copy or distribute any portion the Web Site including related graphics. C. PFEEF and other trademarks and/or service marks (including logos and designs) found on the Web Site are trademarks/service marks that identify the goods and/or services provided by PFEEF. Such marks may not be used under any circumstances without the prior written authorization of PFEEF. Links to Third-Party Web Site PFEEF may provide hyperlinks to third-party web sites as a convenience to users of the Web Site. PFEEF does not control third-party web sites and is not responsible for the contents of any linked-to, third-party web sites or any hyperlink in a linked-to web site. PFEEF does endorse, recommend or approve any third-party web site hyperlinked from the Web Site, although PFEEF does not warrant the quality of those websites. PFEEF will have no liability to any entity for the content or use of the content available through such hyperlink. No Representations or Warranties; Limitations on Liability The information and materials on the Web Site could include technical inaccuracies or typographical errors. Changes are periodically made to the information contained herein. PFEEF MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO ANY INFORMATION, MATERIALS OR GRAPHICS ON THE WEB SITE, ALL OF WHICH IS PROVIDED ON A STRICTLY "AS IS" BASIS, WITHOUT WARRANTY OF ANY KIND AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES WITH REGARD TO ANY INFORMATION, MATERIALS OR GRAPHICS ON THE WEB SITE, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. UNDER NO CIRCUMSTANCES SHALL THE SITE OWNER OR PUBLISHER BE LIABLE UNDER ANY THEORY OF RECOVERY, AT LAW OR IN EQUITY, FOR ANY DAMAGES, INCLUDING WITHOUT LIMITATION, SPECIAL, DIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING, BUT NOT LIMITED TO LOSS OF USE OR LOST PROFITS), ARISING OUT OF OR IN ANY MANNER CONNECTED WITH THE USE OF INFORMATION OR SERVICES, OR THE FAILURE TO PROVIDE INFORMATION OR SERVICES, FROM THE WEB SITE. Changes to These Terms of Use PFEEF reserves the right to change these Terms of Use at any time by posting new Terms of Use at this location. You can send e-mail to PFEEF with any questions relating to these Terms of Use at PFEEF. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[22]=new Array("http://www.personalfinancefoundation.org/about/judith.html","Judith N. Cohart, President","","Home About Us ROI Model Research Press Contact Us About Us Board Members Judith N. Cohart, President Judith N. Cohart recently served as Money Management Manager for the AARP Foundation, where she managed a nationwide program that helps low income older people more effectively handle their personal finances. She developed financial education materials for the Web and print and a financial planning CD-ROM as well as Hispanic financial education seminars. She served as AARP representative on the board of the National Association of Personal Finance Advisors and the Coalition for Consumer Debtor Education. Previously Cohart worked as Executive Director of the National Coalition for Consumer Education, where she established a 50-state network of professionals from academic, business, government, and consumer organizations to promote consumer education. She provided technical assistance through conferences, newsletters, and educational materials, and she managed the organization’s budget and raised funds from major corporations, such as American Express. She worked as School Services Manager for USA TODAY, where she developed a new approach, including materials and instructional presentations for teaching with a newspaper. This included customizing on-site training for employees in markets nationwide. Earlier Cohart worked as Director of Education/Training for the National Foundation for Credit Counseling. She developed curriculum, newsletters, and other materials, and served as staff liaison to several federal government agencies, including the U.S. Congress, and to three Board of Trustees’ committees. She taught 11th grade American History in public schools in New Haven, CT and Orangeburg, NY, and was principal of an alternative high school in Valley Forge, PA. In addition, she supervised student teachers from Swarthmore College and the University of Illinois. Cohart served as a Legislative Assistant to Congressman John J. LaFalce and provided policy analysis, research, and writing on a variety of issues. Cohart has a B.A. in Government from Cornell University, an M.A. in Teaching/History from Yale University, and a J.D. from Catholic University. She is a Member of the District of Columbia Bar. Cohart was twice elected president of a national professional association, the Association for Financial Counseling and Planning Education (1999 and 2006). On January 1, 2010 Cohart began her service as President of the Personal Finance Employee Education Foundation. Contact: E-mail: jcohart@pfeef.org Tele: 859-433-0557 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[23]=new Array("http://www.personalfinancefoundation.org/about/kim.html","Dr. Jinhee Kim, Vice President","","Home About Us ROI Model Research Press Contact Us About Us Board Members Dr. Jinhee Kim, Vice President Jinhee Kim is an Associate Professor and Family Finance Extension Specialist for Maryland Cooperative Extension at University of Maryland, College Park. She also teaches courses in personal and family finance. She received B.S. and M.S. from Seoul National University in Seoul Korea and Ph.D. from Virginia Tech. The University of Maryland recently honored Kim with the George F. Kramer Outstanding Practitioner Award and Outstanding Faculty Woman of Color. Prior to joining University of Maryland, she was director of research to Virginia Tech's National Institute for Personal Finance Employee Education and directed research and published articles in academic and professional journals on workplace financial education. While at Virginia Tech, she served as co-editor of the journal Personal Finances and Worker Productivity. Research from her doctoral dissertation won a national award for excellence from the Association for Financial Counseling and Planning Education. She has published refereed journal articles in Journal of Family and Economic Issues, Research Report of Human Sciences, Journal of Compensation and Benefits, Financial Counseling and Planning, Journal of Consumer Education, Journal of National Association of Family and Consumer Sciences, Compensation and Benefits Review, Journal of Personal Finance, and Journal of Family and Consumer Sciences. Kim has made dozens of invited presentations to state, regional and national conferences. Kim serves as Secretary/Treasurer for the American Association of Family and Consumer Sciences. Her research interests are financial stress, financial well-being, and workplace financial education. Dr. Kim is Vice President of the Personal Finance Employee Education Foundation. Contact: E-mail: jinkim@wam.umd.edu Tele: 301-405-3500 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[24]=new Array("http://www.personalfinancefoundation.org/about/ray.html","Dr. Ray Forgue, Treasurer","","Home About Us ROI Model Research Press Contact Us About Us Board Members Dr. Ray Forgue, Treasurer Dr. Forgue retired in 2008 as an Associate Professor in the Department of Family Studies at the University of Kentucky. He taught courses in personal and family finance, consumer issues, and family policy. He was Department Chair for five years and served as Acting Dean of the College of Human Environmental Sciences. He had also been the departmental Director of Graduate Studies and Director of Undergraduate Studies. Dr. Forgue served his profession as President of the American Council On Consumer Interests and as Chair of the Eastern Family Economics and Resource Management Association. Forgue was also President of the Association for Financial Counseling and Planning Education and served as the organization’s Acting Executive Director in 2008. Dr. Forgue is co-author of Personal Finance published by Houghton Mifflin Company. This college-level textbook is in its 10th edition and has been adopted by instructors at over 300 colleges and universities across the United States. He also co-authored How To Care For Your Parents Money While Caring for Your Parents (McGraw-Hill). This book covers the full range of financial activities that adult children may need to address as their parents age. For eighteen years Dr. Forgue's students operated the consumer helpline for the Consumer Protection Division of the Office of Kentucky Attorney General. Professor Forgue has developed curriculum materials for personal finance education through grants from Council for Economics Education, AARP, the InCharge Foundation and other organizations. His consulting work has included efforts in personal finance education for the U.S. Army, writing personal finance materials in credit counseling, and developing retirement planning educational publications. Forgue is Treasurer of the Personal Finance Employee Education Foundation. Contact: E-mail: perfinypm@yahoo.com Tele: 859-552-7251 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[25]=new Array("http://www.personalfinancefoundation.org/about/tiffany.html","Susan Tiffany, Board Member","","Home About Us ROI Model Research Press Contact Us About Us Board Members Susan Tiffany, Board Member Susan Tiffany, CCUFC, a 26-year employee of the Credit Union National Association’s Center for Personal Finance (www.finlit.cuna.org) and is director of its Personal Finance Information for Adults. Her team develops print, online, audio, and video materials credit unions use to help their members make the most of their financial resources. Credit unions frequently are sponsored by individual or multiple employers, thus credit unions are often tied closely to various workplaces. Much credit union financial education occurs in the sponsoring workplace. Tiffany is a Certified Credit Union Financial Counselor. The CCUFC designation was developed by CUNA to train counselors to help credit union members get control of and optimize their finances. She has been a consumer-advocate member of the Ford Motor Company Consumer Appeals Board and an adviser to American Express for a program introducing teens to credit. Tiffany was for eight years an elected trustee/director of Credit Unions Benefits Services, Inc. (CUBS), and served three years as its chairman. CUBS is a pension company providing retirement plans and investments to credit union employees nationally. Her hallmark in that position was pension simplification and education for participants. She has been a publications judge for numerous credit union awards and makes presentations on personal finance topics to consumer, credit union, and state credit union league audiences. She is a CUNA national media spokesperson on consumer and personal finance issues. Tiffany majored in journalism at the University of Wisconsin and in business administration at Edgewood College, Madison, Wisconsin. Her favorite consumer issue is women’s unique personal finance challenges. Tiffany is a Board Member of the Personal Finance Employee Education Foundation. Contact: E-mail: stiffany@cuna.coop Tele: 608-231-4026; 800-356-9655, X-4026 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[26]=new Array("http://www.personalfinancefoundation.org/about/davidwray.html","David L. Wray, Board Member","","Home About Us ROI Model Research Press Contact Us About Us Board Members David L. Wray, Board Member David L. Wray is the president of the Profit Sharing/401(k) Council of America (PSCA), a national, non-profit association of companies that sponsor profit sharing and 401(k) plans for over 6 million employees. He is a nationally recognized authority on 401(k) and other defined-contribution plan issues and he has testified before congressional committees and at Labor Department, Treasury Department, and Internal Revenue Service hearings. He was the 2004 chair of the Department of Labor’s ERISA Advisory Council, which advises the Secretary of Labor on benefits issues, and was a member of the Certified Financial Planner Board of Standards Advisory Board. He frequently speaks before trade groups, contributes to benefits publications and is quoted frequently in the media. He has written "Take Control With Your 401(k)" which was published by Dearborn Trade in June 2002. He served as president from 1993 to 1996 of the International Association for Financial Participation (IAFP), a Paris based alliance of national organizations that promotes the use of employee financial participation. Wray is a member of the Board of Directors of the Personal Finance Employee Education Foundation. Contact: E-mail: davidw@psca.org Tele: 312-419-1863, X-208 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[27]=new Array("http://www.personalfinancefoundation.org/about/sharon.html","Dr. Sharon A. Burns, Board Member","","Home About Us ROI Model Research Press Contact Us About Us Board Members Dr. Sharon A. Burns, Board Member Sharon Burns serves as the Senior Vice President for Knowledge and Content Management for the International Foundation of Employee Benefit Plans. The non-profit organization, based in Brookfield, Wisconsin,serves over 35,000 professional members and certificants. IFEBP is dedicated to being a leading objective and independent global source of employee benefits, compensation, and financial literacy education and information. Burns received her Ph.D in Consumer and Family Economics from Purdue University, a Master of Science degree in Consumer Science from the University of Wisconsin-Madison and her Bachelor of Science degree in Family Financial Management from Purdue. She became a licensed CPA in 1993. Dr. Burns has served as principal investigator on three financial education projects, funded for a total of over $1.5 million dollars, during the past three years. In addition, she has authored several published manuscripts and is co-author of a trade book, How to Care for Your Parents’ Money While Caring for Your Parents. Dr. Burns holds seats on numerous national boards and committees focusing on improving the financial literacy and decisionmaking of Americans. She has served on meeting facilitation teams for the U.S. Government Accounting Office, National Endowment for Financial Education and Credit Union National Association. In addition she participated in panel discussions concerning financial literacy initiatives hosted by the U.S. Treasury and U.S. General Accounting Office. Contact: E-mail: sburns420@yahoo.com Tele: 262-373-7702 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[28]=new Array("http://www.personalfinancefoundation.org/about/dorothy.html","Dorothy B. Durband, Ph.D., AFC, Board Member","","Home About Us ROI Model Research Press Contact Us About Us Board Members Dorothy B. Durband, Ph.D., AFC, Board Member Dorothy Bagwell Durband is Associate Professor of Personal Financial Planning at Texas Tech University where she teaches graduate and undergraduate courses in financial counseling and communication. She is the director of Red to Black®, a program where she trains personal financial planning students to work with the Texas Tech community as peer financial planners. Durband is an AFCPE Accredited Financial Counselor. She earned her Doctorate in Resource Management, with a specialization in Family Financial Management from Virginia Tech. She holds a Bachelor’s degree in Family, Child and Consumer Sciences from Louisiana State University and a Master of Science in Family Studies from Texas Woman's University. She has experience in providing financial counseling, developing and delivering financial education programs, university teaching, employee training, fundraising and special events planning. Contact: E-mail: dottie.durband@ttu.edu Tele: 806-742-5050 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[29]=new Array("http://www.personalfinancefoundation.org/about/janet.html","Janet Parker, SPHR, EVP, Human Resources, Board Member","","Home About Us ROI Model Research Press Contact Us About Us Board Members Janet Parker, SPHR, EVP, Human Resources, Board Member Janet Parker is executive vice president of human resources at Regions Financial Corporation in Birmingham, Ala. Parker’s department has responsibility for providing strategic HR direction to Consumer Services, Business Services and Mortgage. In addition to the above, she provides leadership to the bank's Management Associate program. Prior to joining Regions Financial Corporation, Parker held various senior HR positions in small and medium sized organizations in non-profit, insurance and manufacturing. Additionally, she is the Past Chair of the national board of directors for the Society for Human Resource Management, the largest HR association in the world with 250,000 members. In 2008, Parker was appointed by President Bush to the newly created President’s Advisory Council on Financial Literacy and was the Chair of the Workplace Subcommittee. She currently serves on the Advisory Council for the Birmingham Society For Human Resource Management and the Central Alabama Financial Education Coalition. Parker earned a bachelor’s degree from Jacksonville State University in Jacksonville, Alabama. She is also a graduate of the American Banking Institution’s Graduate Human Resources School and holds her Senior Professional in Human Resources Certification. Contact: E-mail: janetn.parker@regions.com Tele: 205-326-4629 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[30]=new Array("http://www.personalfinancefoundation.org/about/aimee.html","Dr. Aimee D. Prawitz, Director of Research","","Home About Us ROI Model Research Press Contact Us About Us PFEEF Staff Dr. Aimee D. Prawitz, Director of Research Aimee D. Prawitz is a Professor in the School of Family, Consumer, and Nutrition Sciences and Assistant to the Dean for Research in the College of Health and Human Sciences at Northern Illinois University. She earned a Ph.D. and M.S. in Human Ecology with Specialization in Consumer Science at Louisiana State University. The College of Health and Human Sciences at Northern Illinois University has honored her with the Sullivan Award for Excellence in Research in 2005 and 2010. Dr. Prawitz has published over 45 articles in refereed journals and conference proceedings, and has made over 50 presentations at national and regional conferences. Her doctoral dissertation was recognized with honorable mention awards by both the American Council on Consumer Interests and the College of Agriculture at Louisiana State University. Prawitz has served as a consultant to the Clara Abbott Foundation, and as a Research Scholar with InCharge Education Foundation, Inc. Prawitz has served as the editor of the Journal of Consumer Education and on the editorial boards of the Journal of Financial Counseling and Planning and the Journal of Consumer Affairs. Her research is focused on the effects of financial education on financial distress/financial well-being and on financial practices. Currently, she is serving as the Director of Research for the Personal Finance Employee Education Foundation (PFEEF). Contact: E-mail: aimeeprawitz@yahoo.com Tele: 815-753-6344 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[31]=new Array("http://www.personalfinancefoundation.org/about/jamie.html","Dr. Jinhee Kim, Vice President","","Home About Us ROI Model Research Press Contact Us About Us Board Members Jamie Richter, Research Assistant Jamie Richter is Research Assistant for the Personal Finance Employee Education Foundation. Jamie received her Master's of Science degree from Northern Illinois University in Applied Family and Child Studies. She has worked on several financial distress research projects under the direction of Dr. Aimee Prawitz, and currently is developing two series of financial education workshops based on the Transtheoretical Model of Behavior Change. She is on staff at Northern Illinois University teaching Family Financial Planning. Contact: Jamie Richter E-mail: jrichter1@niu.edu Tele: 630-222-1789 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[32]=new Array("http://www.personalfinancefoundation.org/about/advisory-council.html","Board of Trustees","","Home About Us ROI Model Research Press Contact Us About Us PFEEF Advisory Council Brad Barron, President and CEO CLC Incorporated Tele: 800-541-9701 E-mail: bbarron@clchomeoffice.com James Starr, Vice President Dave Ramsey's Financial Peace University Workplace Edition Tele: 800-754-4220, x5368 E-mail: james.starr@daveramsey.com William Pomeroy, President The EDSA Group Tele: 800-942-2777 E-mail: bpomeroy@theedsagroup.com Liz Davidson, CEO Financial Finesse Tele: (310) 802-6850 E-mail: liz.davidson@financialfinesse.com Steve Maschino, President Financial Soundings Tele: (678) 393-8222 E-mail: SMaschino@financialsoundings.com Ken Redding, President The Financial Wellness Group Tele: 801-296-6300 or 800-245-6283 E-mail: kredding@themoneyplanner.com Alan Gappinger, President and CEO Heartland Institute of Financial Education Tele: 303-597-0197 E-mail: agapp@heartlandfinancialcenter.com William R. Malseed, President InCharge Education Foundation Tele: 407-532-5563 E-mail: wmalseed@incharge.org Alice Whinnery, President LFE Institute Tele: 888-872-4611 E-mail: awhinnery@lfeinstitute.com Mel Stiller, Senior Vice President Money Management International Tele: 617-960-8101 E-mail: Mel.Stiller@MoneyManagement.org Joe Saari, CEO Precision Information Tele: 619-573-1252 E-mail: joesaari@educatedinvestor.com Advisory Council Roles Click here for more information. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[33]=new Array("http://www.personalfinancefoundation.org/docs/Donors List.pdf","Donors List","","Contributors, Donors and Underwriters (Organizations and people who have made significant contributions to the Personal Finance Employee Education Foundation) USA Organizations: Ackley & Associates, Kansas City, MO Advantage Publications, Boston, MA (former member of PFEEF Board of Trustees) Alabama Association of Family & Consumer Sciences, Normal, AL Capital Strategies, Inc., Indianapolis, IN Center for Financial Well-Being, Brentwood, TN Choice Financial Corporation, Rockville, MD CLC Incorporated, Granite Bay, CA ClearVista Financial, LLC Dave Ramsey's Financial Peace University Workplace Edition, Brentwood, TN Decker & Associates, Inc., Houston, TX Discover Learning, Ann Arbor, MI The EDSA Group, Baton Rouge, LA Federal Reserve Bank, Atlanta, GA Financial Education, Inc., St. Paul, MN Financial Finesse, Manhattan Beach, CA Financial Information & Service Center, Menasha, WS Financial Perspectives Planning Services, Inc., Boston, MA Financial Soundings, Alpharetta, GA First Financial Education Centre, Gilbert, AZ The Financial Wellness Group, Bountiful, UT Glenn Enterprises, Midlothian, VA Heartland Institute of Financial Education, Aurora, CO H.D. Vest Financial Services, Irving, TX InCharge Education Foundation, Orlando, FL Institute for Financial Literacy, Houston, TX Institute for Socio-Financial Studies, Middleburg, VA Integrated Benefit Solutions, Houston, TX Intuit, San Diego, CA Investment Horizons, Pittsburg, PA Keeping Track, Columbus, OH Lander University, Greenwood, SC LFE Institute, Springfield, MO LifeScript Learning Systems, Phoenix, AZ Merrill Lynch, New York, NY Money Metrics, LLC, Issaquah, WA Money Management International, Houston, TX My First Home, Merrillville, IN Pennsylvania Office of Financial Education, Harrisburg, PA Precision Information, Chicago, IL ProfitSharing/401(k) Council of America, Chicago, IL Purdue University, West Lafayette, IN Reach Consulting, Lowell, MI Speed Equity, Yelm, WA Texas Society of Certified Public Accountants, Dallas, TX Thriveon, Los Altos, CA TruNorth Life Planning, Tulsa, OK TwoMedicine Health and Financial Fitness, Bozeman, MT University of Georgia, Athens, GA United States Army, SC United States Navy Family Services Center, Norfolk, VA University of Arkansas, Fayetteville, AK University of Maryland, College Park, MD University of Mississippi, Starkville, MS University of Minnesota Extension Service, St. Paul, MN University of Rhode Island, Kingston, RI Virginia Tech University, Blacksburg, VA USA Individuals: Carol Anderson, Poulsbo, WA William J. Arnone, New York, NY Don Atherton, Houston, TX William Bailey, Fayetteville, AR David Bixler, Indianapolis, IN Don Blandin, Washington, DC Dean Brassington, Norfolk, VA Glenn Carnathan, Mobile, AL Rodney C. Brown, Winston-Salem, NC Judith Cohart, Washington, DC Madeleine d'Ambrosio, New York, NY Virginia Garretson, Roanoke, VA Terry Gorbach, Arkon, OH Sally Haas, Tacoma, WA Steve Herrmann, Chicago, IL Steve Lansing, Orlando, FL Raminder Luther, Scranton, PA William Pomeroy, Baton Rouge, LA Jing Jian Xiao, Kingston, RI Flora Williams, West Lafayette, IN Non-USA Organizations: Australia - Money Solutions Pty. Ltd, Sydney, Australia Canada ­ Osler, Hoskin & Harcourt, Toronto, ON, Canada Canada - The Retirement Centre Inc., Kitchener, ON, Canada Africa - University of The Gambia, Serrekunda, The Gambia, Africa India - Finerva Financial Solutions, Pvt, Coimbator, India Malaysia - University of Putra Malaysia, Selangor, Malaysia");sQ1[34]=new Array("http://www.personalfinancefoundation.org/docs/IFDFW_Permission_Use_Chart.pdf","IFDFW_Permission_Use_Chart.pdf","","''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Among those who are approved users of the PFW Scale™ are financial program providers, financial planners, employers, researchers, government agencies, universities, schools, consultants, extension professionals, foundations, military, non-profits, employee benefits, and various businesses involved in mortgages, life insurance, legal services, credit unions, community counseling, and health promotion. The PFW is used in 10 foreign countries. Some users have received permission to place the PFW Scale™ questions on their websites. Location Name of Organization and Program Name(s) Contact Person Organization Contact Information Use of Measure Alabama Samford University Alabama University of South Alabama Alabama University of Alabama Students Box 291462 Sarah Hollis & Rachel 800 Lakeshore Dr Thiebaud Birmingham, AL 35229 Tele: 214-728-2999 rethieba@samford.edu Adjunct Instructor 1133 Southern Way Mobile, AL 36609 Harold Williamson Tele/Fax: 251-378-4131 www.haroldwilliamson.com williamson@usouthal.edu Assistant Professor 304 Adams Hall Box 870158 Cliff Robb Tuscaloosa, Alabama 35487 Tele/Fax: 205-348-1867 crobb@ches.ua.edu www.ches.ua.edu/ President 13835 N. Tatum Blvd, Ste.9-422 Phoenix AZ 85032 Tel: 602-485-3896 www.azmythfinancial.com We are interested in studying financial stress in families with a child with special needs compared to families who do not have a special needs child. Make available to students, coworkers and coaching clients for personal use only. Use as part of a survey analysis in Alabama and Missouri. Arizona Azmyth Financial LLC Todd S. Smith, CFP Assess individual coaching sessions; needs assessment; monitoring employee groups; quantify ROI 1 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale CEO/President 1700 E Lakeside Drive, #49 Gilbert, AZ 85234 Tel: 480- 214-5135 dicknorton3333@msn.com www.ltec.org Exec VP 3131 East Camelback Rd, #235 Phoenix, AZ 85016 Tele/Fax: 602-956-0030 pvolny@lifescriptlearning.com www.lifescriptlearning.com 401(k) Consulting Director 2398 E. Camelback Rd., Suite 800 Phoenix, AZ 85016 Tele/Fax: 602-954-5799 George.p.Fraser@smithbarney.com Arizona First Financial Education Centre Richard R. Norton Faculty and staff at Phoenix College and Alumni. Arizona Lifescript Learning Systems Peter Volny To help convince employers that they should be investing in employee financial education and to educate individuals on the need for financial education. Arizona Morgan Stanley Smith Barney George P. Fraser Using it for research and education. Arizona University of Arizona Arkansas University of Arkansas Associate Agent Pima County Cooperative Extension 4210 N Campbell Ave Linda Block Tuscon, AZ 85719 Telephone/Fax: 520-626-5161 lblock@cals.arizona.edu Professor 118 HOEC Building Fayetteville, AR 72701 William Bailey, Ph. D. Tele: 479-575-2058 wbailey@uark.edu www.uark.edu/depts/hesweb/ HR Management Dept 8965 2001 SE 10th St Wal-Mart Inc City, AR 72716 Tele: 479-273-8271 dawn.scifres@wal-mart.com To use with workshop series/small steps to health & wealth. Financial management classes. Research with university faculty & staff and then with general population. Use data collected as a tool for individuals seeking financial counseling & lanning education. Arkansas Wal-Mart Dawn Scifres Wal-Mart Inc is using the PFW Scale™ in their corporate office to start and may be used on a wider scale later at other locations. 2 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Managing Director PO Box 4192 Lake Haven, NSW 2263 Australia Tel: 61 2 43940311 info@debtfreemastery.com.au www.debtfreemastery.com.au CEO Money Solutions Pty. Ltd. Level 6, 50 Carrington St. GPO Box 3956 Sydney NSW 2001 Australia Tel: 02-9086 6366 Fax: 02-9086 6355 info@moneysolutions.com.au www.moneysolutions.com.au CEO 14950 S. Pony Express Road Bluffdale, Utah 84065 Tele/Fax: 866-307-3201 dsmith@ufirstaustralia.com www.unitedfirstfinancial.com Assistant Professor 5500 University Parkway San Bernardino, CA 92407 Tele: 909-537-7687 kelly@csusb.edu www.psychology.csusb.edu President & CEO 4170 Douglas Blvd Granite Bay, CA 95746 Tel: 800-541-9701 Fax: 916-789-7601 bbarron@clchomeoffice.com www.mysecureadvantage.com CEO 111 N Sepulveda Boulevard Suite 305 Manhattan Beach, CA 90266 Tele: 866-733-2677 Fax: 310-379-6260 liz.davidson@financialfinesse.com Australia Debt Free Mastery Ted O'Shannessy For use by consultants and franchises with their employer clients. Consulting and marketing the Transforming Debt into Wealth program to the workplace in Australia. Australia Money Solutions Pty. Ltd. Virginia Dowd Use with new and exisiting clients Australia United First Financial David Smith Promoting of financial education, coaching and online debt reduction program to employees through HR professionals. California California State University Kelly Campbell Conducting an online study about couple relationsips. To be used in a study to examine relationsips between PFW and relationship satisfaction/couple functioning. California CLC Incorporated Brad Barron Provides financial coaching to members of Employee Assistance Programs California Financial Finesse Liz Davidson 3 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Financial Planner & Educator 440 Sutcliffe Place Walnut Creek, CA 94598 Tele: 925-287-8400 michaelg@gfainvestments.com Sr Product Manager 6220 Grenwich Drive San Diego, CA 92122 Tel: 858-525-9255 susan_harman@intuit.com www.intuit.com President PO Box 3356 Santa Cruz, CA 95063 Tele: 323-321-4492 jjohnson@jestoday.com Financial Advisor 155 Cadillac Drive Sacremento, CA 95825 Tele: 916-567-2082 christopher.james.luyet@smithbarney.com California Gateway Financial Advisors Michael Ginsberg Use in speaking with HR representatives to encourage employee financial wellness courses. California Intuit Susan Harman Place on the loading page for Lowe's employees on the Educated Investor Website California Johnson Education Solutions Jessica Johnson Use to offer it free online to prospective clients and individuals. California Morgan Stanley Smith Barney Christopher Luyet 401k participants seminar and college sturdent seminars. California San Francisco University Brie Pfisterer California Thrive-on Keith Kitani California ValueOptions Sandy Werner Student 2400 Ivy Dr #6 Oakland, CA 94606 Tel: 510-316-7103 bcp@sfsu.edu CEO 1545 Kensington Circle Los Altos, CA 94024 Tele/Fax: 650-469-1315 kkitani@thriveon.com www.thriveon.com Vice president 10805 Holder Street, Suite 300 Cypress, CA 90630 Tel:800-228-1286 sandy.werner@valueoptions.com www.valueoptions.com To be used for online financial wellness solution for corporations and organizations. Pilot program to access financial wellness. 4 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale 300 John St, Suite 201 Thornhill, ON L3T 5W4 Canada Tele: 416-875-1505 Fax: 416-875-1504 dhanzelka@email.com www.danielhanzelka.com Trustee/Director 6001-21 Argyle Forest Blvd Ste 120 Jacksonville, FL 32244 Tele/Fax: 877-542-3175 MBA Research Director 7 - 452 Glen Pine Court Kelowna, BC Canada ViV 1W7 Tele: 250-869-1416 pam@careymanagement.ca President 903 - 2050 Nelson Street Vancouver, BC Canada V6G 1N6 Tele: 604-608-0816 / 6040 608 2716 doreen@gardnerbrown.ca Business Development Coordinator 440 Nursey Hill Drive Victoria, BC Canada V9B OE2 Tel: 250-474-5942 baileechambers@shaw.ca CEO 216 161 Stafford St Winnipeg, MB R3M 2W9 Tele/FAX: 204-794-3530 jon@3squarefinancial.ca www.3squarefinancial.ca Owner 2855 Main Ave, #A104 Durango, CO 81301 Tele: 970-759-8736 arete@arete.us Canada Armstrong & Quaile and Associates Daniel Hanzelka Helping HR professionals to improve their company's profits by increasing their employee's financial security. Collecting data from employee's and monitoring financial progress. On website to help raise individuals awareness of where they stand. With companies we are providing financial education to. To engage individuals to consider personal financial condition to open door for discussion to increased financial literacy and responsibility. Canada none Frank Wiginton Canada Carey Management Corp Pam Nelson Canada Gardner Brown Consulting Inc Doreen Gardner Brown Educational seminar for premarriage money management program. Canada Investors Group Financial Services Bailee Chambers Survey employees to determine need and then use to encourage the employer to offer programs in house. Canada 3 Square Financial Jon Billings Allow businesses to distribute to employees to determine need for financial literacy program, track record keeping tool for clients. Workplace survey to determine financial wellness in which to offer free financial education seminars to employers for employees. Colorado Financial Success Group Jeanne Randazzo Szczech 5 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale CEO Heartland Institute of Financial Education 2851 South Parker Road, Suite 1100 Aurora, CO 80014 Tel: 888-517-7115 or 303-597-0197 Fax: 303-369-3900 www.HeartlandFinancialEducation.com agapp@hife-usa.org Colorado Heartland Institute of Financial Education Alan Gappinger Workplace financial education program evaluation Colorado Momentum Personal Finance Matt Kelly Owner 1053 Main Avenue Suite 111 Durango, CO 81301 Tele: 970-749-0644 matt.kelly.durango@gmail.com Pre-financial education assessment and postfinancial education assessment. Colorado My Financial Advice, Inc Ron Peremel President and CEO 3005 Center Green Drive, Suite 115 Boulder, CO 80301 Tele: 303-395-3355 x100 rperemel@myfinancialadvice.net Collect data from clients Colorado People's Financial Advisor, LLC Robert J. Schumann Chief Advice Officer PO Box 1582 Buena Vista, CO 81211 Tele: 719-966-5221 / 208-728-0139 drfinance@bresnab.net To help with major cutbacks in the Buena Vista and Salida Public School. 6 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Director of Marketing & Communication TwoMedicine Health and Financial Fitness Collect data from all clients in conjunction 3008 Gaylord Street Denver, CO 80205 with Mayo Behavior Risk Assessment Tel: 406-582-9000 questions Fax: 720-941-6884 khanson@twomedicinemontana.com www.twomedicinemontana.com Partner Financial Prosperity, Inc. 105 Gambel Court Bear, DE 19701 Tel/Fax: 215-880-4749 hjjones100@aol.com Senior Community Affairs Anayst Division of Consumer and Community Affairs, Federal Research Board of Governors, 20th and C Streets, NW, MS 801, Washington, DC 20551 202-452-3774 daniel.r.gorin@frb.gov http://www.federalreserve.gov President 5689 Lake Champlain Drive Orlando, FL 32829 Tele:321-695-4107 billy.whitejr@yahoo.com www.billygwhite.com Director of Community Impact 1301 W Government St Pensacola, FL 32501 Tel/Fax: 850-434-3157 susan@unitedwayescambia.org www.unitedwayescambia.org Colorado TwoMedicine Health and Financial Fitness Bozeman, Montana 80014 Kyle C. Hanson Delaware Financial Prosperity, Inc Harvey Jones Collect data from employees to measure results and later share results. District of Columbia Federal Reserve Board Daniel R. Gorin Research project Florida Billy White Billy White Use in workplace to evaluate employee financial well being. Florida Escambia Financial Stability Coalition-of United Way of Escambia Susan Senkarik Financial stability workshops & programs with area businesses 7 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Financial Advisor 5900 Bonita Beach Road Ste 103 Bonita Beach, FL 34134 Tele/Fax: 239-948-5999 bartels@myway.com donjbartels.com President & Chief Executive Officer 2121 Park Center Drive Orlando, FL 32835 Tele: 407-905-8870 Fax: 407-532-5661 wmalseed@incharge.org www.inchargefoundation.org Director, Environmental Services 3001 W. Martin Luther King Blvd. Tampa, FL 33607 Tele: 813-554-8147 douglas.rothermel@baycare.org Trustee/Director 6001-21 Argyle Forest Blvd Ste 120 Jacksonville, FL 32244 Tele/Fax: 877-542-3175 rsims@theveritasinstitute.org Florida FSC Don J Bartels Preparation for participating with The Heartland Institute. Florida InCharge Education Foundation Wm Malseed Use in research questionnaires Florida St Joseph's Hospital Doug Rothermel Will be used as a part of the Financial Peace University Workplace Edition offered to our team members. Want to measure the financial wellness of our staff. Florida The VERITAS Institute for Personal Advancement A. Ray Sims III Client and member survey, data collection and benefit analysis. Florida University of Florida Michael Gutter Assistant Professor of Family Financial Management 3002C McCarty Hall D, PO Box 110310 Gainesville, FL 32611 Surveying Students for need Tel: 352-392-1778 ext 228 Fax: 352-392-8196 msgutter@ufl.edu www.fycs.ifas.ufl.edu Financial Readiness Specialist 182 Kingson St Fortson, GA 31808 Tele: 706-322-9604 rjg0003@auburn.edu Georgia Army Community Services/Auburn University Rosalie Grant-Nolt To be used for a course assignment to find a survey to discuss in my Survey Research class. 8 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Athens Area Homeless Shelter Patricia FreemanLynde Assistant Director 330 Three Oaks Dr Athens, GA 30607 Tele/Fax: 706-254-2178 pattyfl@bellsouth.net Housing Counselor Athens Land Trust 2109 West Broad Street Athens, GA 30606 Tele:706-613-0122 cathi@athenslandtrust.org www.thenslandtrust.org President 13800 Highway 9, Ste D Alpharetta, GA 30004 Tele/Fax: 678-393-8222 / 678-3938234 smaschino@financialsoundings.com www.financialsoundings.com HR Manager 3003 Scarlett Street, Suite 25 Brunswick, GA 31520 Tele: 912-267-5025 lavoiem@gsicommerce.com www.gsicommerce.com Director, Total Rewards 4700 Waters Ave Attn: Human Resources Savannah, GA 31404 Tele/Fax: 912-350-76630/350-7625 weaveju1@memorialhealth.com Ass't Professor of Business Admin 969 Valley Drive Jefferson, GA 30549 Tele: 770-362-5193 rperrella@piedmont.edu Asst. Professor of Family Financial Planning, Dept. of Housing & Consumer Economics 262 Dawson Hall Athens, GA 30602 goetz@uga.edu Georgia to follow Georgia Athens Land Trust Cathianne Watkins Pre & post tests for housing counseling clients in 2009. Georgia Financial Soundings Steve Maschino BOT Georgia GSI Commerce Michael Lavoie Evaluation of employees & need for financial education. Justifying & ROI for implementing training program. Georgia Memorial Health, Inc Julie Weaver Organization is implementing Dave Ramsey's program and would like use to gauge the financial stress and/or well being of our Team Members. Plan to examine the relationship between financial knowledge ans financial wellbeing/stress. Georgia Piedmont College Robert Perrella Georgia University of Georgia Joseph Goetz Use in a research project 9 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Assistant Professors Dept. Housing and Consumer Economics Robert Nielsen, Ph.D. 205 Consumer Research Center House C Ted Futris, Ph.D. Athens, GA 30602 Tel: 706-542-8885 rnielsen@uga.edu tfutris@uga.edu Student 2262 Byron Ct, SW Marietta, GA 30064 Andrea Ellis Tele: 770-833-5629 domesticgoddess100@yahoo.com Instructor 755 Hickory Lane West Chicago, IL 60185 Dennis Zaderaka Tele:630-293-5088 dennis.zaderaka@hife-usa.org Graduate Student 10 S 592 Book Rd Naperville, IL 60564 Jamie Richter Tel: 630-579-4997 Z098573@students.niu.edu Masters Candidate in Applied Family & Child Studies 421 1/2 N 3rd St Keith Hays DeKalb, IL 60115 Tele:217-840-3978 keith.hays@pobox.com Instructor Dept of FCNS Wirtz Hall room 118 DeKalb, IL 60115 Tele/Fax: 815-543-6651 kchampion@niu.edu CEO 3435 Camino Del Rio South #316 San Diego, CA 92108 Tel: 619-573-1252 Fax: 775-796-1015 joesaari@educatedinvestor.com Georgia University of Georgia Online survey of couple's financial practices Georgia Shorter College To be used on an 80 page research project of lost productivity & efficency in the workplace due to financial stress. Illinois Heartland HIFE Use in corporate settings and church classes Illinois Northern Illinois University Conduct graduate research Illinois Northern Illinois University To be used for a master's thesis examining antecedents of financial behaviors and financial distress/financial well-being of college students. Illinois Dept of FCNS Northern Illinois University Kelly Champion Research project with Dr. Aimee Prawitz on financial distress, materialism and orientations towards money. Illinois Precision Information, LLC Joe Saari Use on the Educated Investor website for use in the Lowe's and Virtual University projects 10 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Director of Human Resources 1125 Division Street Chicago, IL 60411-2491 Tele: 708-481-6100, ext 3113 brunyan@speed802.org President - Finerva House #176-C, 2nd Street Gandhipuram,Coimbatore - 641 012 TN -INDIA Tel: +91-422-6505344 Cell: +91-98433-79872 www.Finerva.com Director of Sales & Marketing 8401 Virginia Street Merrillville, IN 46410 Tel: 888-755-7828 Cell: 219-765-8116 Fax: 888-757-7828 maloia@newstatemtg.com Agent 6640 Intech Blvd, Suite 120 Indianapolis, IN 46278 Tel: 317-275-9254 Fax: 317-275-9309 haynesar@purdue.edu www.ces.purdue.edu/marion Executive Director 10001 Dawsons Creek Blvd Fort Wayne, IN 46825 Tele: 260-497-9996 clint_kugler@fwymca.org Managing Director 3001 Westown Parkway, Suite 200 West DesMoines, IA 50266 Tele/Fax: 515-974-4567 scott.drake@holmesmurphyfs.com CFP 2400 NW 86th Street, Suite 25 Des Moines, IA 50322 Tele: 515-334-5266 Brian.hood@lfgplanners.com Illinois SPEED S.E.J.A. #802 Ben Runyan Preparing to implement a financial education class with a researched basaed model. Provide an additional hands-on service. India Finerva Financial Solutions Pvt. Ltd. Pradeep Yuvaraj "Financial Wisdom 4 Indians" Use in a research project of clients Indiana My First Home Mike Aloia Education of first time- home buyers Indiana Purdue University Extension-Marion County Rebecca HaynesBordas, AFC Assess productivity benefits to local employers who ask for & receive education for their employees Indiana YMCA of Greater Fort Wayne Clint Kugler Research the affects of financial education within the YMCA. Iowa Holmes Murphy Financial Services Scott Drake Used as a primary financial wellness measure of our corporate clients' employees. Iowa Legacy Financial Group Brian Hood To help local companies develop financial wellness programs. 11 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Masters Student Dept of Community & Global Health University of Tokyo Sameeha Mohd Jamil Bunkyo-Ku, Hongo 7-3-1 Tokyo 113-0033 Tele/Fax: 03 5841 3698/3422 sameehajamil@yahoo.com Financial Readiness Program Mgr 615 McClellan Ave Fort Leavenworth, KS 66027 Patricia Osborne Tele: 913-684-2852 Fax: 913-684-2859 patricia.l.osborne@us.army.mil www.leavenworth.army.mil/dca/acs/index.htm Japan University of Tokyo, Japan To measure economical impact of influenza on Mexicans in Japan and as an indicator of economical impact. Kansas Army Community Service Used for first term soldiers E1-E4 and for soldiers having financial difficulties. Kansas Cerebral Palsy Research Foundation Robert Hull Vice President for Research 5111 East 21st Street Wichita, KS 57208-1202 Tel: 316-652-1551 Cell: 316-304-9008 bobh@cprf.org www.cprf.org Executive Director PO Box 20953 Wichita, KS 67208 Tele: 316-768-4353 afranklin@cdfr.org www.cdfr.org President & COO 6229 Nall Avenue Suite 101 Mission, Kansas 66202 Tele: 913-262-9700 gmoyer@essentialknowledge.com Employee Education Coordinator 105 N Main M.S. 1.10 Wichita, KS 67202 Tele: 316-383-1073 andrew.gough@intrustbank.com Administrative Manager 1450 Minor Road Danville, KY 40422 Tele/Fax: 859-936-4468 www.denyo.co.jp srinehart@denyo.us Financial services and financial education to individuals with diasabilities Kansas Community Development Financial Resources, Inc Angie Franklin Assess individuals to determine need in the area of finacial education. Use as financial measurement tool. Kansas Essential Knowledge Graham Moyer Measure results of workplace financial education programs. Kansas INTRUST Bank, N.A. / NestEgg Consulting Inc. Andrew Gough Used with one of our major clients and hopefully other future clients. Kentucky Denyo Manufacturing Corporation Stephen Rinehart Assess financial wellness of current employees and to use for future financial literacy education. 12 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Chaplain/Director of Spirituality 2100 Millvale Rd Louisville, KY 40205 To be used for preparation of the Dave Tele/Fax: 502-301-8397/502-459-1018 Ramsey program. chaplain.fourcounts@signaturehealthc arellc.com www.signaturehealthcarellc.com Associate Professor 2391 Tuscon Blvd Lexington, KY 40503 Tel: 859-257-7756 rforgue@uky.edu President One Oak Square 8280 YMCA Plaza Drive, #4 Baton Rouge, LA 70810 Tel: 225-291-0343 Fax: 225-291-0419 Bpomeroy@theedsagroup.com www.theedsagroup.com Extension Agent 157 Cherokee Drive Crowley, LA 70526 Tele: 337-788-8821 Fax: 337-788-8816 avidrine@agctr.lsu.edu www.lsuagcenter.com Editor, Financial Counseling & Planning Gerald Cire & Lena Grand Williams Alumni Professor School of Human Ecology Baton Rouge, LA 70803 Tel: 225-578-1726 Fax: 225-578-2697 flawrence@lsu.edu www.fccs.huec.lsu.edu Kentucky Signature Healthcare's Four Courts @ Cherokee Park Rev. Dennis McDaniel, Jr Kentucky University of Kentucky Dr. Ray Forgue General survey Louisiana EDSA Group Bill Pomeroy, CFP To assess the link between health care and financial wellness; to measure progress and the need for financial education. Louisiana Louisiana State University Adrianne Vidrine Survey LSU agcenter employees as part of internal leadership class. Louisiana Louisiana State University Fran Lawrence, PhD Data collection for help with a grant that relates to how individuals adapt & cope with new situations they face due to hurricanes Katrina & Rita 13 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Professor Universiti of Putra Malaysia Dept. of Resource Management & Consumer Studies Faculty of Human Ecology 43400 UPM Serdang Selangor Darul Ehsan Malaysia jariah@putra.upm.edu.my Malaysia Universiti of Putra Malaysia Jariah Masud, PhD Financial literacy research Malaysia University Malaysia Sarawak Lecturer Faculty of Cognitive Sciense & Human Development Using in teaching and learning for counseling Unimas Mohd Razali Othman 94300 Kota Samarahan student, use for research. Malaysia Tele: +6019 48 99847 enaieap1@yahoo.com Director of Client Relations 6001 Montrose Road, Suite 704 Rockville, MD 20852 Tel: 301-881-8900 x107 JohnHodges@ChoiceFinance.net www.choicefinance.net/johnhodges.htm Human Resources Manager 6500 Rock Spring Drive, Ste 105 Bethesda, MD 20817 Tele/Fax: 240-223-8032 nvazquez@connectiv-solutions.com www.connectiv-solutions.com Maryland Choice Finance Corporation John Hodges Employee education program Maryland Connectiv Solutions Nikki Vazquez To determine if they need to provide a financial peace workshop to our employees. Maryland Johns Hopkins Medical Institutions Kira Evans Senior Research Assistant 2024 E Monument Street, Suite 2-624 Questionaire for kidney disease patients. Baltimore, MD 21287 Tel: 443-955-8736 kevans@jhsph.edu Associate Professor 1204 Marie Mount Hall College Park, MD 20742-7515 Tel/Fax: 301-405-3500 jinkim@wam.umd.edu Maryland University of Maryland Cooperative Extension Jinhee Kim, PhD Use with extension agents' clients. 14 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Publishing Director 11 Beacon Street, Suite 915 Boston, MA 02108 Tele/Fax: 617-742-3222 / 617-2480034 info@advantagepublications.com www.advantagepublications.com Massachussetts Advantage Publications Victor Claman BOT American Consumer Credit Massachussetts Counseling Albie DiBenedetto Massachussetts DotWell Doreen Treacy Marketing Program Specialist 130 Rumford Ave, Suite 202 Auburndale, MA 02466-1371 Tele/Fax: 800-769-3571 x 210 adibenedetto@consumercredit.com www.consumercredit.com Director CivicHealth Institute 450 Washington Street Dorchester, MA 02124 Tele:617-822-8120 doreen.treacy@dotwell.org SVP 8 Winter Street, Suite 700 Boston, MA 02108 Tele: 617-960-8101 Fax: 614-960-1492 Mel.Stiller@MoneyManagement.org www.MoneyManagement.org Founding Partner 118 Milk Street Boston, MA 02109 Tele: 617-723-7735 erica.feldblum@lpl.com Financial Education Consultant 12 Seaver Street #2 Dorchester, MA 02121 Tele: 617-256-6361 nicholas_josey@vincita.org President PO Box 1261 Sterling Heights, MI 48311 Tele: 810-240-3545/270-778-9035 robin@budgetwise.net Placement on our website to assist clients, potential clients, and general visitors in assessing their personal financial situation. Tool will be engaged as part of a comprehensive fiscal health intervention with staff and patients of two Boston-based community centers. Money Management Massachussetts International Mel Stiller Surveys with clients Massachussetts R2R Erica Feldblum To use in delivering participant advice and education services to Messer Construction Co. Massachussetts The Vincita Institute Nicholas Josey Online tool for worklace financial education participants and personal reference. Michigan Budget Wise Consulting Robin Thompson Use the tool to strengthen the case for workplace financial literacy. 15 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Cygnet Financial Freedom House President 4139 West Walton Boulevard, Suite D Waterford, MI 48329 tedl@financialfreedomhouse.com www.CygnetInstitute.com Money Management Educator Kent County/MSU Extension 775 Ball Ave NE Grand Rapids, Michigan 49503 Tele: 616-336-3212 treuld@msu.edu Executive Director 612 North Main Street Ann Arbor, MI 48104 Tele/Fax: 734-945-1639 annebannister@pfes.org President 3101 Kissing Rock Lane Lowell, MI 49331 Tel: 616-897-7424 mark.millis@sbcglobal.net Personal Finance Educator and Coach 2177 Bayham Drive SE Tele/Fax: 616-340-6427 barbarawelch@thegoodlifefinancial.com Michigan Ted Lakkides, CFP Employer groups in Michigan in conjunction with the Michigan Council on Economic Education Michigan Michigan State University Extension David Treul As a pre-test evaluation of students participating in a series of personal money management related classes. Michigan Personal Finance Education Services, Inc. Anne Bannister To contine their program of providing personal finance education throughout the local community college. Michigan Reach Consulting Mark Millis A tool to share with HR Managers and for presentation at workshops for employees Michigan The Good Life Financial Inc Barbara Welch Assessment tool for workplace education programs and for individual financial coaching. Human Resources Personnel conference. To be used at HR professionals seminars and employees meetings. Minnesota Securus Wealth Management Howard Richards LLC www.thegoodlifefinancial.com Certified Financial Planner 3340 B Annapolis Lane North Plymouth, MN 55447 Tele: 763-231-7881 / 763-231-7891 hdr@securuswealth.com Director Minnesota Extension Service's Latino Financial Literacy Program 290 McNeal Hall - 1985 Buford Ave St. Paul, MN 55108 Tel: 612-624-1786 Fax: 612-625-4227 pdolson@umn.edu extension.umn.edu MoneyEveryDay/index.html Minnesota University of Minnesota Extension Service and Family Social Science Dept. & Patricia Olson, Ph.D. Minnesota Extension Service's Latino Financial Literacy Program Collect data from participants in Latino financial literacy project 16 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale President P.O. Box 1188 Starksville, MS 39759 Tel: 662-323-9261 Fax: 601-906-1935 Jholland@nctv.com President 1736 E Sunshine , Suite 312 Springfield, MO 65804 Tele: 888-872-4611 Fax: 417-889-3714 awhinnery@lfeinstitute.com www.lfeinstitute.com President 1736 E Sunshine , Suite 312 Springfield, MO 65804 Tele/Fax: 417-889-3700 awhinnery@lfeinstitute.com Financial Literacy Instructor 943 Park Avenue St Louis, MO 63104 Tele: 314-231-7971 deborah.smartsolutions@gmail.com County Program Director 353 S. Lafayette Marshall, MO 65340 Tel: 660-886-6908 Fax: 660-886-6327 crawfordc@missouri.edu Business Manager 410 Colorado Ave Laurel, MT 59044 Tel/Fax: 406-628-3356 rbinger@laurel.k12.mt.us www.laurel.k12.mt.us/ President PO Box 3505 Bozeman, MT 59772-3505 Tel/Fax: 406-582-9000 ehanson@twomedicinehealth.com www.twomedicinehealth.com Mississippi Community Counseling Services Jody H. Holland To use as a pre-test and post-test to determine effectiveness of financial literacy program Missouri LFE Institute, Inc. Alice Whinnery Pre and post surveys Missouri LFE Institute, Inc. Alice Whinnery Give to employees prior to workshops or Money Coaching. Use to gather additional data for PFEEF. Missouri Smart Capital Solutions Deborah Williams To access financial stress and for financial literacy classes. Missouri University of Missouri Extension Cynthia Crawford, PhD Financial counseling for individuals and families, pre-post evaluation - financial education classes Montana Laurel Public Schools Roger Heimbigner Serving financial wellness of faculty and staff. Montana TwoMedicine Health and Financial Fitness Earl Hanson Collecting data from employees along with Mayo Clinic behavioral health risk assessment measure. 17 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Financial Wellness Consultant 121 So 13th Street, Suite 201 Lincoln, NE 68501 Tele/Fax: 402-458-2796 www.nelnet.com nicole.sweigard@nelnet.net Director 1805 Harney Omaha, NE 68105 Tele: 402-981-0305 juliek@uwmidlands.org High School Teacher 511 Millbrook Ave Randolph, NJ 07869 Tele/Fax: 973-361-2400 www.rtnj.org mcascione@rtnj.org Professor Cook College Office Bldg 55 Dudley Road New Brunswick, NJ 08901 Tele: 732-932-9155, ext 250 oneill@aesop.rutgers.edu President/CEO 4700 Lincoln Road NE Albuquerque, NM 87109 Tele: 505-344-4080 cyoungblood@cg-engrs.com www.cg-engrs.com Business Services Facilitator 4216 Balloon Park Road Alburquerque, NM 87109 Tele/Fax: 505-344-5470 www.nmedu.org lori@nmedu.org Manager 4501 Indian School Road, Suite 101 Albuquerque, NM 87110 Tel: 505-254-7767 Fax: 505-254-4722 Lori-O@littlepa.com Nebraska Nelnet - Lincoln Office Nicole Sweigard Benchmarking where associates currently are with financial wellness. Use the data for future planning and curriculum development. Nebraska United Way of the Midlands Julie Klakowski Will be used as part of a pilot test of the survey questionaire/evaluation tool for the larger project. New Jersey Randolph High School Michael Cascione Scale will be used in a new Personel class that he will be teaching next year. New Jersey Rutgers University Dr Barbara O'Neill Board of Directors New Mexico Chavez-Grieves Chris Youngblood Used for employee financial wellness training. New Mexico Cooperative Educational Services Lori O'Rourke Assess employee's financial position prior to teaching class. Teach class and then review progress. New Mexico Susan C. Little & Assoiates P.A. Lori O'Rourke To use in conjunction with assessment of productivity benefits for employees one year following monthly financial training 18 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Community Capital Resources Financial Education Coordinator 7 West Cross Street Hawthorne, NY 10532 Tele/Fax: 914-747-8020 (ext 10) dyoung@ccrhv.org Technical Manager Bob Tindall Building Gate 5, Oaklands Road Massey University Albany, Auckland Tel/Fax: +64 274 755 223 shane@whostolemymoney.com Marketing Director MAC M5563-011 5606 Carnegie Blvd. Charlotte, NC 28209 Tel: 704-571-4162 Cell: 704-264-5087 Fax: 866-876-9935 President, Owner PO Box 6472 Columbus, Ohio 43206 Tel/Fax: 614-443-2424 jbrowning@chironcompany.net www.chironcompany.net President 3284 North Bend Road, Suite 106 Cincinnati, OH 45239 Tel: 513-481-1829 Fax: 513-481-6444 c.fazackerley@fuge.net www.cfazackerley.com President Box 135 30628 Detroit Road Westlake, OH 44145 Tele: 216-288-5788/440-398-6077 goodlife-now@oh.rr.com New York Doug Young To use in presentations in housing projects where we will provide personal counseling. New Zealand Who Stole My Money Shane Zahn Use the PFW Scale™ with employees to help them gauge how they are progressing as they become more financial literate. North Carolina Wells Fargo Home Mortgage Jason Landrum To include on benefit site that focuses on employee health and financial wellbeing/fitness. Ohio Chiron Company Jerry Browning Help individuals build awareness of their financial perspectives and then provide financial coaching. As a consultant to businesses, help create awareness of need of financial education. Ohio Clare J. Fazackerley, CPA Clare Fazackerley, CPA To assist with money worries and refer for financial education, rasie questions about specific issues to discuss/advise Ohio Goodlife Diane C Savage Utilitze with clients as part of employee education assessment. 19 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Communications Specialist 1105 Schrock Rd, Suite 500 Columbus, OH 43229 Tele/Fax: 614-545-2925 mcasey@groupbenetisagency.com www.groupbenefitsagency.com Owner PO Box 750336 Dayton, Oh 45475 Tele/Fax: 937-657-2547 jknopp@joeknopp.com www.joeknopp.com Program Manager 406 Moseley Hall Bowling Green, OH 43403 Tele: 419-372-2252 pmdonne@bgsu.edu Vice President of Financial Planning 400 Broadway Cincinnati, OH 45202-3341 Tele: 513-362-2224 rick.krawczeski@wslife.com wslife.com Financial Education Program Mgr PO Box 45750 Tinker AFB, OK 73145-0750 Tel: 405-319-2185 Fax: 405-443-2787 campbellc@tinkerfcu.org www.tinkerfcu.org President 7035 E 99th Pl Tulsa, OK 74133 Tel & Fax: 918-633-3611 kevin@tnlifeplanning.com www.tnlifeplanning.com Ohio Group Benefits Agency MaryPat Casey To assess employees of their financial health and then help them find their shortfalls in their financial well-being. Ohio Joe Knopp, LLC Joseph Knopp Evaluate client's financial knowledge and evaluate employers need for financial education, then measure results. Ohio Student Money Management Services, Bowling Green Patricia Donnelly State University To gather information concerning financial distress levels of students who keep individual aapoinments with service staff. Ohio Western & Southern Financial Group Rick Krawczeski Educational. In addition to be used for employee financial wellness. Oklahoma Tinker Federal Credit Union Cynthia Campbell Hand-out to HR directorsat a workshop where they will learn the link between workplace performance and financial stress. Oklahoma TruNorth LifePlanning Kevin Shahan To survey employees, share results with employees and compare with employer records. 20 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Instructor for Heartland Financial 2000 SW First Ave, Suite 400 Portland, OR 97201 Tele/Fax: 503-228-6645 deena.bosworth@planneddollars.net www.heartlandfinancialeducation.com Business & Product Development 718 NE 12th Ave Portland, OR 97232 Tele: 503-546-5381 bgriffis@pointwestcu.com Executive Director 801 N Homewood Avenue Suite 201 Pittsburgh, PA 1208 Tele & Fax: 412-378-1142 revware@busp.org www.busp.org HR Manager 2081 W. Whitehall Road State College, PA 16801 Tele: 814-238-2282 jhartley@catabus.com President 508 Elm Avenue, Suite 100 Phoenixville, PA 19460 Tele: 610-933-4442 dhepburn@hepburnadvisors.com Extension Educator-County Extension Director Courthouse Basement 240 Main St. Ridgway, PA 15853 Tele/Fax: 814-776-5331 814-776-5332 rkuleck@psu.edu www.elk.extension.psu.edu Oregon New England Financial William A Sizer Will use as handout for a Heartland class. Oregon Point West Credit Union Brian Griffis Financial assessment of select employer groups. Pennsylvania Building United of Southwestern Pennsylvania Rev. Dr. Samuel Ware Financial literacy education. Document financial literacy education. Research on stress & health. Pennsylvania Centre Area Transportation Authority Julie Hartley Survey employees to tailor financial education in the workplace. Monitor financial wellness of employees. To help employers evaluate the financial wellness of their employee population and to benchwork improvements. Pennsylvania Hepburn Financial Advisors Doug Hepburn Pennsylvania Penn State Cooperative Extension in Elk County Robin L. Kuleck Currently planned needs assessment for Elk County employees workplace financial education and future education in Cameron, Elk, McKean and Potter counties. 21 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Financial Education Specialist Pennsylvania Office of Financial Education 17 North 2nd Street, Suite 1300 Harrisburg, Pennsylvania 17101 Tel: 717-783-2498 Fax: 717-214-0808 bmacdicken@state.pa.us www.banking.state.pa.us www.moneysbestfriend.com 611 Brown Avenue #104 Turtle Creek, PA 15145 Tele/Fax: 412-229-8478 ajs117@pitt.edu Financial Planner 27 Worthington Drive West Grove, PA 19390 Tel: 610-869-4696 Cell: 610-299-8899 ax: 610-869-5658 psmullen@petermullen.com www.woodburyfinancialservices.com Chairman & CEO 3 Piedmont Street East Fairview, Quezon City 1118 Phillipines Tele/Fax: 632-939-9593 cruise@skydsl.com.ph Resgistered Financial Planner Office 6, 2/F CM Plaza 61 Don P. Campos Avenue Dasamarinas, Cavite 4114 Phillipines Tele: +63 46 4161385 message@pinoysmartsavers.com Money Coach 1 1/2 Willow Street Newport, RI 02840 Tele: 508-369-1796 embracingmoney@gmail.com Pennsylvania Pennsylvania Office of Financial Education Becky MacDicken Collecting data from all state of Pennsylvania employees Pennsylvania University of Pittsburgh Angelica JoNel Starkey It will be used in research questionaires for a dissertation research study. Pennsylvania Woodbury Financial Services, Peter Mullen, ChFC Inc. Financial education Phillipines Personal Financial Advisors Phillipines Corporation Efren Ll. Cruz, RFP to follow Phillipines Pinoy Smart Savers Learning Alvin T Tabanag Center Financial wellness assessment of employees prior to personal finance seminars. Rhode Island Embracing Money Nancy Rae Evans To prove the need for financial literacy programs at local employers. 22 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Pro-Change Behavior Systems, Inc Sr Vice President R & D PO Box 755 West Kingston, RI 02892 Tele/Fax: 401-874-5612/401-874-4103 sjohnson@prochange.com President 10 Anson Road #24-05A International Plaza Singapore 079903 +6596791650 bernardlim@wealthxollege.com.sg www.wealthcollege.com.sg Chairman 214 Lemey Buidling 1st Road KEW 2090 Johannesburg, South Africa Tele: +27 11 440802 victor.nkomo@gmail.com Department Manager Sasol Secunda Shared Services Private Bag x1000 Secunda 2302 South Africa Tel/Fax: +27 (0) 17 610 2393 nadia.vanniekerk@sasol.com www.sasol.com Ass't Proffesor of Accounting & Law 116 Portsmouth Road Greenwood, SC 29649 Tel: 864-388-8302 Fax: 864-388-8020 jbenton@lander.edu Consultant 104 E. Simpson Street Charleston AFB, SC Tele/Fax: 843-963-4406 barbara.lang@charleston.af.mil Rhode Island Sara Johnson Using in an online program to help users reduce debt and improve ffinancial wellbeing. To ascertain the effectiveness of our financial education at the work[lace programs. To create awareness among employersin Singapore and to help build the international community for financial education. Singapore Wealth College Division of Wealth Hub Pte Ltd Bernard Lim South Africa Financial Literacy for All Victor Nkoomo For the presentation we do in poor countries. South Africa Sasol Secunda Shared Services Nadia Van Niekerk Used to assess the financial stress levels of specific department employees. South Carolina Lander University U.S. Army Financial Literary Academy James E. Benton Financial Basic Training Workshop for Army Reserves; use in Personal Finance class at Lander University financial literacy workshops South Carolina U.S. Air Force Barbara Lang To determine the present financial well being of clients and in addition to determine financial well being of students. 23 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Financial Readiness Program Manager USAG-Ansbach Storck Barracks Illesheim Determine the financial education needs of CMR 416, Box 1 APO,AE 09140 military families Tel: 467-4555/4764 Fax: 467-4813 Robert.Risner@US.Army.Mil South Carolina U.S. Army Rober Risner South Carolina Walden University South Dakota South Dakota State University Spain U.S. Navy Doctorate of Business Administration (student) 1212 Mashie Court Teresa Steele Dunlap Mount Pleasant, SC 29466 Tele: 843-467-5148 teresa.steele@waldenu.edu Instructor of Consumer Affairs 5849 W King Arthur Dr Sioux Falls, SD 57106 Kathryn Morrison 605-695-2395 kathryn.morrison@sdstate.edu Financial Educator & Counselor U.S. Navy, FFSC Rota, Spain PSC 819 Box 57 FPO AE 09645 Ralph Steinheimer Tele: 011-34-956-823232 ralph.steinheime.ctr@eu.navy.mil www.cnic.navy.mil/rota/index.htm Vice President 1749 Mallory Lane, Suite 100 Brentwood, TN 37027 Tele: 800-754-4220 x5368 james.starr@daveramsey.com www.daveramsey.com Associate Professor Family & Consumer Sciences Dept 218 Morgan Hall Knoxville, TN 39776 865-974-8198 dkwise@utk.edu fcs.tennessee.edu Would like to use the scale in writing a doctoral study prospectus. Used as a survey instrument for measuring financial well-being of adults, specifically Generation X (age 25-44) Financial education courses and one-on-one counselling sessions Tennessee Dave Ramsey's Financial Peace University James Starr Measure financial wellness before and after financial seminars Tennessee University of Tennesse at Knoxville Dena Wise, PhD Survey of students at the university to collect baseline data on financial stress prior to intervention programs. 24 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Associate Professor Family & Consumer Sciences Dept 218 Morgan Hall Knoxville, TN 39776 865-974-8198 dkwise@utk.edu fcs.tennessee.edu Director - HR 1400 La Concha Lane Huston, TX 77054 Tele: 713-791-6207 gsassone@giveblood.org www.giveblood.org Manager, Premium Financial Planning Support 6333 N. State Hwy 161, 4th Fl Irving, TX 75038 Tel: 972-870-6195 Fax: 972-870-6128 cindyscott@hdvest.com www.myhdvest.com/cindyscott Owner 9511 Spindlewood Houston, TX 77083 Tele/Fax: 832-567-5715 halley@halleysfinancialcorner.com 650 N Sam Houston Pkwy. E., Ste 400 Houston, TX 77060 Tel: 713-706-3600 Fax: 281-866-9750 Don.atherton@ibslinks.com Financial Services Manager 5700 Granite Parkway, Suite 500 Plano, TX 75024 Tele/Fax: 214-423-3333/214-423-3350 www.scarbrough-medlin.com steve@scarbrough.medlin.com Regents Fellow Professor 1111 Research Parkway, Suite 126 College Station, TX 77843-2251 Tel: 979-845-3850 Fax: 979-845-6496 n-granovsky@tamu.edu Tennessee University of Tennesse at Knoxville Dena Wise, PhD Survey of students at the university to collect baseline data for an online financial education class assignment. Texas Gulf Coast Regional Blood Center Gretchen Sassone Will use for both employee education and training needs assessment. Texas H.D. Vest Financial Services Cindy Scott Financial education course for team members Texas Halley's Financial Corner, LLC Demetria Halley Provide financial education to business clients. Texas Integrated Benefit Solutions Don Atherton Use with clients Texas Scarbrough, Medlin & Associates Steve Frisch Integrate use of PFW Scale™ into financial education program to measure success of our program as a "added value" to our current client employers. In addition it will be used as introductory program to clients. Wi$e Up Financial Planning for Generations X and Y Women (face-to-face workshop series) Texas Texas A&M University Nancy Granovsky, CFP, CFCS 25 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Immediate Past Chairman Davis, Kinard & Co., P.C. 400 Pine St, Suite 600 Abilene, TX 79601 Tele: 823-672-4000, ext 215 Fax: 325-672-7049 jlove@dkcpa.com www.dkcpa.com Assistant Professor 601 University Drive San Marcos, TX 78666 Tele: 512-245-8489 kim.davis@txstate.edu PhD Student 6007 76th Street Lubbock, TX 79424 Tel: 806-698-9282 tgriesdorn@yahoo.com Assistant Professor Box 41210 Lubbock, TX 79409 Tele/Fax: 806-742-5050 ext 273 bruce.brunson@ttu.edu Dept of Family Sciences Texas Women's University 2505 Pinto Drive Denton, TX 76210 AmyHouser@mail.twu.edu lchenoweth@twu.edu Texas Texas Society of CPA's Jerry Love Use with clients Texas Texas State University Kimberlee Davis Research on workplace financial education and investigating the success of prior financial education. Texas Texas Tech University Tim S. Griesdorn Doctorial dissertation research and workplace financial education evaluation. Texas Texas Tech University Bruce Brunson Used in research on solution based financial planning. Texas Texas Women's University Amy Collier Lillian Chenoweth, PhD To use in a research study of objective and subjective measures of financial distress/financial well-being. Texas Texas Women's University Stacey Smith Dept of Psychology PO Box 425470 Denton, TX 76204-5470 Tele: 214-280-6446 Fax: 940-898-2301 SSmith20@twu.edu Research Project 26 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Executive Director The Institute for Financial Literacy University of Houston-Downtown College of Business Collecting data online from any visitor to 1801 Allen Parkway Foundation website as well as employees of Houston, Texas 77019 participating employers Tel: 713-652-0654 Tel: 713-594-2001 Fax: 713-655-1655 bwoehler@ffltx.org www.ffltx.org President 911 NW Loop 281, Suite 211-31 Longview, TX 75604 Tel: 903-758-0855 Fax: 903-297-6921 tom@watson-Training.com www.thepayraiseprofessor.com 4144 N Central Expressway, # 580 Dallas, TX 75204 ssmithson@ywcadallas.org Tel: 214-584-2304 Fax: 214-826-4548 Senior Human Resources Specialist 203, 205 Moo 7 Tha Tum Srimahaphote, Prachinburi Thailand Tele/Fax: 663-720-8700, ext. 3388 rujirat.ura@hitachigst.com www.hitachigst.com National Sales Director 1840 N State Street Provo, Utah 84603 Tel: 801-377-5400 ronnie.daniel@gochartedcourse.com www.gochartedcourse.com President 545 West 500 South, Suite 180 Bountiful, UT 84010 Tel: 801-296-9509 Fax: 801-296-6300 kredding@themoneyplanner.com www.thefinancialwellnessgroup.com Texas The Foundation for Financial Mary Beth Woehler Literacy Texas Watson Training & Development Tom Watson, PhD Measure financial wellness before and after financial success seminars Texas YWCA of Metropolitan Dallas Susan Smithson Track changes, progress of financial condition of indivduals and families served through YWCA Financial Education courses. Test employee financial wellness for my research study to gain credit for the independent study of master degree in Human Resource Development at National Institute of Development Administration in Thailand. Incorporate into their website to help potential clients understand need for services. Incorporate into marketing material and utilize in client training courses. Thailand Hitachi Global Storage Technologies Rujirat Urangun Utah CharteredCourse, LLC Ronnie Daniel Utah The Financial Wellness Group Ken Redding Employee financial wellness training. Use the scale as a pre-post assessment to measure employee's improvement in financial wellness. 27 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Financial Counselor 14040 Central Loop Woodbridge, VA 22193 Tele: 703-730-1800 ext 5303 kanthon@belvoirfcu.org belvoirfcu.org Dir of Corp Real Estate Benefits 111 Mill Creek Pkwy Ste 301 Chesapeake, VA 23323 Tele: 757-558-2603 x 109 757-558-2604 owennorris@cox.net Virginia Belvoir Federal Credit Union Kelli Jo Anthon Use to distribute the survey to staff to get a sense of overall financial wellbeing. Use to promote mandatory financial education for all new employees and see if ongoing education is needed for all other employees. Use as a toll to educate employers of their need to incorporate an employee financial education to improve worker production. Survey employees who work for firms as a way to help prove that the employer does in fact have employees who need financial management help. Research project to evaluate the financial health of Marine Corps personnel. Research results will not be provided to PFEEF as agreed by J Cohart. Hampton Roads FE Roundtable Research project. USN/CFS training proposed research pilot project Virginia CMS Mortgage Solutions, Inc Owen Norris Virginia MBI Charlie Chowder Virginia U.S. Marine Corps Linda Khan Virginia USN/FFSC NAS Oceana Dean Brassington Washington US Army Stacey Moody Washington Horizon Credit Union Winnie Woodward Vice President 4900 Cox Rd, Suite 170 Glen Allen, Virginia 23059 Tele: 804-285-7844 ccrowder@managedbenefits.com Research Analyst 3280 Russell Road Quantico, VA 22134-5103 Tele: 703-784-9517 linda.khan@usmc.mil Financial Educator 1820 East Ocean View Ave Norfolk, VA 23503-2503 Tel: 757-583-4564 brassdolphin@earthlink.net www.ffscnorva.navy.mil Financial Readiness Specialist Dept of the Army DFMWR/ACS MS 20 Box 339500 Fort Lewis, WA 98433-9500 Telephone/Fax: 253-966-9183 stacey.moody@us.army.mil Director of Education 13224 E Mansfield Ave, Suite 300 Spokane, WA 99216 Tele: 509-928-6494 wwodard@hzcu.org To access the financial wellness of our military personnel and families. Pre and post evaluation for financial education classes. To access financial education needs of employees and to track financial behavior changes of employees. 28 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale President Westlake Tower 1601 5th Ave, Suite 1103 Seattle, WA 98101 Tele: 425 605-5800 Fax: 425 605-5848 info@LaunchBenefits.com President 4260 190th Ave SE Issaquah, WA 98027 Tel: 425-373-4025 Cell: 425-260-4786 Fax: 206-338-2793 bob@money-metrics.com www.top5mistakes.com Information Technology Director 6620 Carpenter Rd SE Lacey, WA 98503 Tel: 360-412-4516 Fax: 360-412-4518 lweber@nthurston.k12.wa.us www.nthurston.k12.wa.us/ Associate Professor Business Program 18115 Campus Way NE University of Washington Bothell, WA 98011 Tele/Fax: 425-352-5383 petenye@u.washington.edu wwwluwb/business/people/faculty/pnye.xhtml Washington Launch Benefits Ben Brashen To put on corporate website. Washington Money Metrics, LLC Robert Pessemier Financial education Washington North Thurston Public Schools Larry Weber Survey public school employees Washington University of Washington, Bothell Pete Nye To be used in a study for his research project. West Africa University of the Gambia Bukhari Sillah, PhD Head of Department Economics & Management Sciences University of the Gambia Kanifing, PO Box 3530 Serrekunda The Gambia, West Africa Tel: 220-437-5522/220-774-0606 Fax: 220-439-5064 bsillah73@yahoo.com Collect data from national government employees, assess financial progress, and report projected ROI 29 4/29/2010 ''185 Users" Authorized Users of the Personal Financial Wellness (PFW) Scale Edith Cowan University 270 Joondalup Drive Joondalup, Western Australia 6027 Tele:61 8 63045605 Fax: 61 8 63045633 Financial Consultant 6 Haining Road Kingston 5 Jamaica, West Indies Tele/Fax: 876-908-0223 admin@financiallysmartonline.com www.financiallysmartonline.com Education Manager 921 Midway Road Menasha, WI 54952 Tel: 920-968-6332 aprahl@fisc-cccs.org www.fisc-ccs.org Certified Financial Educator 15643 W. Brook Drive New Berlin, WI 53151 Tele/Fax: 262-796-0500 / 2621-7961877 david.leist@hife-usa.org Asst Professor 1300 Linden Madison, WI 53706 Tele/Fax: 608-262-0369 jmcollins@wisc.edu www.wisc.edu Worksite Benefit Consultant PO Box 158 Mosinee, WI 54455-0158 Tele/Fax: 715-693-7700 mgoodness@weatrust.com Western Australia Edith Cowan University Dr Paul Gerrans Using the measure in a research project which will be evaluating the role of a financial education program delivered to new police recruits in Perth, Western Australia Use to point employers to our site so that they can use the scale with their workers. To encourage the growth of workplace financial wellness programs in Jamaica. West Indies Financially SMART Services Cheryl Hanson Simpson Wisconsin Financial Information & Service Center Alan Prahl Financial counseling and education (pretest/post-test) Wisconsin Heartland Institute of Financial Education David Leist Use in a brown bag session and then allow employees to gauge their financial wellness and then improve it. Wisconsin UW Madison J. Michael Collins Measure credit union employee financial status in WI. Wisconsin WEA Trust Member Benefits Mike Goodness To be included in a presentation to all Wisconsin School District Administrators in attendance, supported by appropriate handouts. 30 4/29/2010");sQ1[35]=new Array("http://www.personalfinancefoundation.org/about/mary.html","Mary Moldenhauer, Administrative Manager","","Home About Us ROI Model Research Press Contact Us About Us Administrative Manager Mary Moldenhauer, Administrative Manager Mary Moldenhauer is the Administrative Manager for the Personal Finance Employee Education Foundation. Mary has worked in the benefits and payroll arena for many years and is a well-qualified and highly respected specialist. Mary retired from CSM Corporation in Minnesota in 2007, where she managed the company’s benefits and payroll department that supported over 2,000 employees. Her main responsibility was to oversee the company benefit plans that included health, dental, life insurance, and the company 401(k) retirement program. Mary realized early in her career that just providing the employees benefit options was not enough as it is very apparent that employees need much more education in these areas to make good sound decisions. Mary’s education continued throughout her working years as she took advantage of every workshop and training opportunity related to the fields of employee benefits, payroll and retirement as well as many other topics. Contact: PFEEF Contact Page Tele: 352-753-3735 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[36]=new Array("http://www.personalfinancefoundation.org/press/press-releases/Value-of-Workplace-Financial-Education-Programs.html","Foundation Helps Employers Prove Value of Workplace Financial Education Programs","","Home About Us ROI Model Research Press Contact Us Press Press Releases Foundation Helps Employers Prove Value of Workplace Financial Education Programs, July 10, 2006. PFEEF Click here to download this article (PDF). The newly created Personal Finance Employee Education Foundation, Inc. subsidizes the employer's cost of conducting research on financial education and the employer's return on investment. Dr. Tom Garman, president of the PFEEF announced the formation of the foundation in May 2006. The PFEEF provides a limited funding program exists to subsidize the employer's cost of conducting research on financial education. The non-profit Personal Finance Employee Education Foundation, Inc. is a private foundation established for the non-commercial charitable purpose of serving the public by informing employers on the bottom-line benefits of providing workplace financial education to employees that improves their financial literacy and personal financial behaviors. The establishment of the Personal Finance Employee Education Foundation, Inc. in May 2006 institutionalizes the efforts and expand the impact of a decade long research and publicity effort of an informal national coalition of academics, businesspersons, financial education providers, and foundations. The work of these experts has been to disseminate research findings to employers on the bottom-line benefits of a financially literate workforce. The Foundation aims to reach thousands of employers and millions of employees by substantially leveraging the number of presentations of research findings and persuasive arguments to better inform employers on the multiple values of providing workplace financial education to employees. The PFEEF creates and distributes materials to help motivate employers to offer employees access to basic financial literacy education, communicates its mission with employers in formal and informal ways, and supports research related to promoting workplace financial education. The non-profit Personal Finance Employee Education Foundation, Inc. recommends employers provide employees access to high quality basic financial education that increases financial literacy and changes employees' personal financial behaviors so financial distress decreases and financial well-being improves. Why? Because research demonstrates that this improves the employer's profits as well as the financial lives of employees. The PFEEF speaks well of "Recommended Workplace Financial Education Providers" as the very best organizations in the United States of America that emphasize basic financial literacy information and education that results in improvements in employees' personal financial behaviors, decreases in their financial distress and improvements in employee financial well-being. The PFEEF pays tribute to "Best Practices Employers" that provide the very best workplace financial information and education programs for their employees who often make skillful use of their benefits programs and contribute wisely to their employer-sponsored retirement programs. The PFEEF does not provide workplace financial education or conduct research, although the PFEEF does recommend researchers qualified to assist employers in making the bottom-line business case for high quality workplace financial education. The PFEEF maintains a "National Speakers Bureau" of experts qualified to make effective oral presentations, including one-on-one talks, to employers, financial education providers, human resources professionals, trade and professional associations, and academics. The PFEEF provides a limited funding program for human resource directors, financial education providers and researchers to subsidize the employer's cost of conducting research on financial education and the employer's return on investment. The program will be fully mounted in February 2007. Dr. Garman says this to human resource directors, "If your workplace financial education program is successful, keep it; if not warn the provider to improve results in six months or go hire a provider that will do the job right so you can enjoy the thanks of your employees as well as applause of your boss for the improved bottom-line results." Click here to download this article. (PDF) Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[37]=new Array("http://www.personalfinancefoundation.org/roi/ROI-November-2009.pdf","ROI-November-2009.pdf","","");sQ1[38]=new Array("http://www.personalfinancefoundation.org/research/PFEEF-Conducts-Four-Types-of-ROI-Research.pdf","PFEEF-Conducts-Four-Types-of-ROI-Research.pdf","","PFEEF Conducts Four Types of ROI Research 1. The online PFEEF ROI Calculator permits employers to fill out the form, get an ROI estimate based on good generic assumptions and calculations, and obtain a report of those findings. 2. PFEEF can benchmark the financial wellness of an employer's employees. Data collection using the Personal Financial Wellness (PFW) questions takes about 7 minutes using pencil and paper and/or an online system. PFEEF prepares a concise report that compares the results to national norms and recommends specific topics that can be provided through a quality workplace financial program that will improve employee financial behaviors and the employer's bottom line. Click here for sample report. 3. PFEEF can work with an employer to benchmark the financial wellness of its employees as well as use cost data provided by the employer to prepare a comprehensive report that projects an employer-specific return-on-investment for hiring a quality provider of workplace financial program. 4. A year later PFEEF can prove the genuine ROI using employer data. Contact the PFEEF Director of Research for more information. More details are available upon request.");sQ1[39]=new Array("http://www.personalfinancefoundation.org/research/efd.html","Employee Financial Distress","","Home About Us ROI Model Research Press Contact Us Research Employee Financial Distress Employee Financial Distress, Emotional Health Risk, and Absenteeism, 2010, Prawitz, Haynes, Garman, Shatwell, Hanson, Hanson Read more... Employee Personal Financial Distress and How Employers Can Help, 2009, Research Works: The Partnerships for Workplace Mental Health Read more... Employee Debt: Expert Views (2009), Human Potential Accounting Read more... * Recommended Reading Click here for more articles on this topic. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[40]=new Array("http://www.personalfinancefoundation.org/research/hpf.html","Health and Personal Finances","","Home About Us ROI Model Research Press Contact Us Research Health and Personal Finances Stress Over Debt Overtaking Health, 2008, January 10, Associated Press, J. Aversa. Read more... * Lifestyle Risk Factors, Health Status, and Financial Distress: Framing Interventions Using the Transtheoretical Model of Change, 2007, Proceedings of the Association for Financial Counseling and Planning Eduction, Prawitz, Shatwell, Haynes, Hanson, Hanson, O'Neill, & Garman Read more... * Changes in Health, Negative Financial Events, and Financial Distress/Financial Well-Being for Debt Management Program Clients Financial Counseling and Planning, 2006, Financial Counseling and Planning, O’Neill, Prawitz, Sorhaindo, Kim, & Garman Read more... * Recommended Reading Click here for more articles on this topic. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[41]=new Array("http://www.personalfinancefoundation.org/research/vte.html","Value to Employers","","Home About Us ROI Model Research Press Contact Us Research Value to Employers It's Time to Create a Financially Literate Workforce to Improve the Bottom Line, Benefits Compensation Digest, Prawitz & Garman, 2009 Read more... Financial Well-being in the Workplace, Institute for Employment Studies (United Kingdom), Cox, Hooker, Markwick, & Reilly, 2009. Read more... "What Does the FED Say?" Click here for more information. The Case for Financial Education at the Workplace Click here to view the pdf developed by Federal Reserve Banks (PDF). Education to Promote Employee Financial Well-Being: What Role for Employers? GTZ Case Study Book on Financial Wellness (2009), Prawitz & Garman Read more... * Recommended Reading Click here for more articles on this topic. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[42]=new Array("http://www.personalfinancefoundation.org/research/rp.html","Retirement Preparation","","Home About Us ROI Model Research Press Contact Us Research Retirement Preparation Will DC Automatic Programs Eliminate Need for Education and Advice in the Workplace? 2007, Schaus Read more... Literacy, Trust and 401(k) Savings Behavior, 2007, Center for Retirement Research at Boston College, Agnew, Szykman, Utkus, & Young, Read more... Factors Related to Retirement Confidence: Retirement Preparation and Workplace Financial Education, Financial Counseling and Planning, 2005, Kim, Kwon & Anderson Read more... * Recommended Reading Click here for more articles on this topic. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[43]=new Array("http://www.personalfinancefoundation.org/research/cch.html","Credit Counseling Helps","","Home About Us ROI Model Research Press Contact Us Research Credit Counseling Helps The Impact of Changes in Financial Stressor Events on Financial Well-Being of Debt Management Program Clients, 2008, Proceedings of the Association for Financial counseling and Planning Education. Prawitz1, O’Neill, Sorhaindo, Kim, & Garman. Read more... * Financial Distress/Financial Well-Being: Do Length of Time Spent in a Debt Management Program and Reduction in Financial Stressor Events Make a Difference? 2007, Consumer Interest Annual, Prawitz, O’Neill, Sorhaindo, Kim, & Garman Read more... * Financial Behaviors of Consumers in Credit Counseling, International Journal of Consumer Studies, 2006, Xiao, Sorhaindo, & Garman. Read more... * Recommended Reading Click here for more articles on this topic. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[44]=new Array("http://www.personalfinancefoundation.org/research/fle.html","Financial Literacy Education","","Home About Us ROI Model Research Press Contact Us Research Financial Literacy Education Strategies for Motivating Employees To Develop Positive Financial Behaviors: An Application of the Transtheoretical Model of Behavior Change, 2008, Xiao, J.J, Prawitz, A.D., Prochaska, J.M., O'Neill, B,, Kim, J., & Garman, Special publication of the Personal Finance Employee Education Foundation, pp. 1-8 Read more... * InCharge Financial Distress/Financial Well-Being Scale: Development, Administration, and Score Interpretation, Financial Counseling and Planning, (2006) Prawitz, Garman, Sorhaindo, O'Neill, Kim, & Drentea Read more... * The Incharge Financial Distress/Financial Well-Being Scale: Establishing Validity and Reliability Proceedings of the Association for Financial Counseling and Planning Education, 2006, Prawitz, Garman, Sorhaindo, O'Neill, Kim, & Drentea Read more... * Recommended Reading Click here for more articles on this topic. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[45]=new Array("http://www.personalfinancefoundation.org/research/Research-Agenda.pdf","Research Projects List","","Research Agenda Personal Finance Employee Education Foundation The Personal Finance Employee Education Foundation (PFEEF) advocates best practices in workplace financial programs. We anticipate that in a few years PFEEF will be able to publish an article in the Harvard Business Review with carefully researched business cases demonstrating the positive return on investment to employers for providing employees easy access to quality financial programs. For more information, including over 60 published research studies, see www.PersonalFinanceFoundation.org. PFEEF is working on a number of research projects and plans others as additional resources become available. Some studies are funded by contributions to the Foundation while others are conducted with proprietary funding. Findings are distributed via research reports, academic research papers, trade publications, press releases, speeches, PFEEF website, and PFEEF ezine newsletters. Our goal in pursuing such projects is to convince employers that not only do employees with improved financial well-being make better employees, but also that as stewards of employee well-being, employers should offer quality financial education programs in the workplace because it is the right thing to do. Our task is to prove the return on investment (ROI) for providing employees with quality workplace financial literacy programs. Why? First, because we believe the ROI is at least 3 to 1 and expect that employers knowing that information will act wisely. Second, employees who practice good financial behaviors lead more satisfying financial lives and are more adequately prepared for a financially successful retirement. Once the business case for quality workplace financial programs is proved, many more management teams will willingly invest the money needed by their human resources professionals to increase employee financial wellness and the bottom line. PFEEF conducts a variety of types of studies: 1. Project an Employer's Specific Return on Investment PFEEF can project a ROI for a specific financial education provider to an employer with a single data online collection of employees who complete the 8question Personal Financial Wellness (PFW) scale questionnaire and 6 demographic questions. This involves using employer-provided cost figures and PFEEF's metrics. 2. Prove a Workplace Financial Program Works PFEEF can prove a program works by collecting PFW data from employees in a pre-post research online data collection. The answer both the provider and employer should want to know is "How many employees report an increase in their personal financial wellness following a quality workplace financial program?" Will it be 10%, 20%, 40% or even higher? 3. Prove the ROI of a Workplace Financial Program One Year Later PFEEF also can work with a provider and employer to prove the dollar value of a workplace financial program 1 year after a program, or an expanded program, has begun. 4. Personal Financial Wellness National Norms A new study will establish updated national norms of the personal financial wellness of employees. Employers and providers will be able to compare the financial wellbeing of their employees with the national norms. 5. Work Time Wasted PFEEF will update its highly acclaimed study on employee work time spent dealing with personal financial concerns at work rather than being productive. 6. Moving the Financial Behaviors of Adults from the Pre-action Stage to the Action Stages Using the Transtheoretical Model of Change Study will investigate strategies to attract adults to participate in financial programs as well as to empower them to move from the pre-action stage of change (not yet ready to make behavior changes) to the action stage (has implemented the change). 7. Best Employers PFEEF conducts surveys of employers to identify the nation's employers who are best at providing employees easy access to high quality basic financial programs. A list of identified "Exemplary Employers" is available along with criteria at: http://www.personalfinancefoundation.org/exemplary-employers.html.");sQ1[46]=new Array("http://www.personalfinancefoundation.org/scale/pfw-data-collection.html","Online PFW Data Collection and Employer's ROI","","Home About Us ROI Model Research Press Contact Us Online PFW Data Collection The Personal Financial Wellness (PFW) scores for a sample of employees provides the human resources professional and top management a benchmark of the overall financial wellbeing of employees. National norms for the general population of adults in the United States exist for comparison. Employers and workplace financial program providers may collect Personal Financial Wellness (PFW) scores from employees using the valid and reliable questions. Employees may (1) complete the PFW questions online using state-of-the art encrypted confidentiality, or (2) fill out the questions using a pencil and paper format. Six demographic questions also are asked. This takes employees 3 to 4 minutes to complete. Working solely through our partners—PFEEF's “Quality Providers”—the Personal Finance Employee Education Foundation projects the ROI for employers who chose to implement or expand a quality financial program designed to reduce employee financial distress and increase their personal financial wellness. The ROI numbers are based upon the distribution of scores on the Personal Financial Wellness (PFW) questions from a sample of employees in a single online data collection that benchmarks the financial wellness of the employees. PFEEF prepares a written report and PowerPoint presentation of the findings that a partner shares with participating client. There is no cost to the employer. If requested, PFEEF can create an employer-specific ROI when their human resources professionals provide actual cost data. PFEEF also conducts research with its Quality Providers to prove that their financial programs work; we do so in part by measuring increases in employee financial wellness. One year following the commencement of a financial program PFEEF can calculate an employer's genuine return-on-investment. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[47]=new Array("http://www.personalfinancefoundation.org/press/press-releases.html","Press Releases","","Home About Us ROI Model Research Press Contact Us Press Press Releases Online Employer's ROI Calculator on Workplace Financial Program is Free, December 17, 2009. PFEEF Read more... Financial Distress Taking Toll on Employee Health, May 28, 2009. PFEEF Read more... The Personal Finance Employee Education Foundation Recognizes the Transtheoretical Model of Behavior Change as the Gold Standard for Financial Program Providers to Utilize in their Communications, December 2, 2008. ProChange Behavior Systems and PFEEF. Read more... Click here for more press releases on this topic. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[48]=new Array("http://www.personalfinancefoundation.org/press/media-citations.html","Media Citations","","Home About Us ROI Model Research Press Contact Us Press These are some of the hundreds of stories that have cited PFEEF research. Media Citations Source (Readership/Viewers/Listeners) Date Workforce Management (200,000) 11/08 Baton Rouge Business Report (90,000) 11/04/08 WGRD-FM (110,000) 11/03/08 Investment Advisor Magazine (100,000) 10/08 Fresno Bee (180,000) 10/05/08 Great Falls Business (50,000) 10/08 SHRM Webcast E-Newsletter (240,000) 08/21/08 The Hindu (225 million) 03/15/08 Associated Press (80 million) 01/10/08 Pittsburgh Post Gazette (200,000) 01/08/08 Investors Business Daily (300,000) 11/30/07 Dallas Morning-News (100,000) 09/17/07 The Advocate (highly recommended) 09/09/07 Employee Benefits (United Kingdom) 09/07 Employee Benefits News (100,000) 05/02/07 Employee Benefit News 03/02/07 Financial Advisor Magazine 01/04/07 Employee Benefits News (100,000) 02/02/06 Star Tribune (60,000) 12/08/06 Financial Advisor 12/01/06 Central Penn Business Journal (20,000) 05/26/06 Workforce Management Magazine (80,000) 05/08/06 Clark Howard (radio talk show; millions) 03/09/06 Market Wrap With Moe Ansari (radio; 200,000) 03/07/06 Employee Benefit News (100,000) 02/14/06 HR Magazine (150,000) 12/05/05 Miami Herald (200,000) 12/07/05 WGST-AM (Atlanta, 200,000) 10/06/05 USA Today (2.3 million) 10/05/05 Soundoff! (Fort Meade, MD 40,000) 07/14/05 Springfield News Sun (Ohio, 35,000) 07/03/05 401(k)HelpCenter.com (200,000) 05/03/05 Journal of Financial Planning (25,000) 04/05 Daily Record (220,000) 04/08/05 Investment News (110,000) 04/04/05 Workforce Week Management (400,000) 03/27-04/02-05 U.25 (500,000) 03/05 Management Today (Australian; 200,000) 03/05 Work/Life Today (12,000) 02/05 Fidelity Magazine (8.1 million) 01/05 Click here to view the full list. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[49]=new Array("http://www.personalfinancefoundation.org/features/Workers-financial-stress-may-hurt-productivity.html","Workers' financial stress may hurt productivity: By Stephanie Armou","","Home About Us ROI Model Research Press Contact Us USA Today Workers' financial stress may hurt productivity: By Stephanie Armour The financial stress piling up on employees due to an increase in home foreclosures and defaults on credit cards is having an impact on the workplace, potentially draining productivity and increasing emotional stress on the job. Major employee-assistance counselors serving Fortune 500 companies are reporting a surge in calls from employees worried about mortgages and finances. Ceridian, a Minneapolis-based provider of employee counseling services, typically gets several hundred calls a month from employees seeking financial counseling. From June to July, it saw a 50% increase in calls for financial advice. And ComPsych, a Chicago-based employee assistance provider, reports a similar surge in finance-related calls. "Our calls in general for mortgage-related issues are up over three times compared to last year," says Richard Chaifetz, CEO of ComPsych. "(Employees) become preoccupied with financial issues at work. You see absenteeism, lack of performance and turnover as people look for jobs that may pay more." Financial worries can manifest themselves in the workplace as employees moonlight to pick up extra money, or can cause anxiety, depression, absenteeism and productivity problems that affect the bottom line, says Jonathan Hefner, manager of legal and financial counseling services for Ceridian. FIND MORE STORIES IN: July | Compsych | ING Direct | Principal Financial Group "There is a connection between emotions and finances," Hefner says. "Employees are calling about the mortgage crisis and financial squeeze. They're very anxious. We're hearing a lot more concern about foreclosure. It can have a real significant (impact) at work." The number of foreclosure filings reported in July, according to an August report from RealtyTrac, jumped 93% from July of 2006 and rose 9% from June, the latest sign that homeowners are having trouble making payments and finding buyers during the national housing slump. There were 179,599 foreclosure filings reported during July, up from 92,845 during the same period a year earlier. Nearly three out of five employees say they're worse off financially this year, according to an August survey by ComPsych. Just 16% said they are better off, with more savings and less debt. Money woes can take a severe toll on employees. When asked what kept them awake at night, 38% of employees said they are concerned about being able to pay for basic necessities in retirement, according to a survey by The Principal Financial Group. Nearly half are anxious about enjoying the same quality of life they now have. "Financial stress is probably the No. 1 stress that gets people to fail," says Arkadi Kuhlmann, CEO of online bank ING Direct. "People are preoccupied and not being as productive." USA TODAY, September 5, 2007, B1 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[50]=new Array("http://www.personalfinancefoundation.org/features/Employees-Money-Woes-Filter-into-Workplace.html","Employees’ Money Woes Filter into Workplace: By L.M. SIXEL","","Home About Us ROI Model Research Press Contact Us Houston Chronicle Employees’ Money Woes Filter into Workplace: By L.M. SIXEL (lm.sixel@chron.com) As the recession grinds on, more people are finding themselves behind on their bills. Whether it’s credit cards, a mortgage or medical expenses, chances are it’s affecting on-the-job productivity. It’s not just the time it takes to talk to the bill collectors who call. It’s the stress and the worry and the fretting that take their toll. And that costs companies money, according to E. Thomas Garman, president of the Personal Finance Employee Education Foundation in Florida. That’s because financially stressed employees have higher absenteeism rates, require more medical services and tend to have more accidents at work, said Garman, who spoke recently at a conference sponsored by HR Houston. He figures that represents hundreds of dollars per employee per year. About one in four American workers reported serious financial distress in 2005, said Garman, who amalgamated a dozen academic and business studies to reach that number. And today? Garman estimated that closer to 35  percent to 40 percent are financially distressed. Conversely, the sign of a financially stable employee? That’s someone with a credit union membership, said Donald Atherton, president of Integrated Benefits Solutions in Houston. Typically that’s someone who is getting money withdrawn from a paycheck regularly and squirreling it away. “Most financial problems,” he said, “are caused by having no cash cushion.” For those of us who didn’t pick up the art and skill of budgeting from our parents or at school, companies can help fill the gap, Atherton said. And teaching financial management doesn’t have to cost much. Many 401(k) providers, for example, are willing to come out and give presentations on the basics of investing. Stress and expenses The company’s employee assistance program should be equipped to talk about the stress caused by financial problems, he said, while the health care provider should be able to teach better expense management. For example, only 15 percent to 20 percent of employees put aside money in flexible spending accounts because they’re worried about the “use it or lose it” provision. But with planning, some of that worry could be alleviated, he said. “You’re already paying for these resources,” he said, estimating that for every $1 spent in education, employers receive $3 back in benefits. One way is that employers don’t have to pay Social Security and other payroll taxes on the money employees set aside for flexible spending accounts. Reaching out Lori Taylor, supervisor of employee services at Enbridge Energy in Houston, said she has already had the company’s 401(k) provider give presentations on how to prepare for retirement and its employee assistance program has done sessions on budgeting and financial planning. To complement those services, Taylor asked a representative from the local Social Security office to come and talk about how the benefit program works, the advantages and disadvantages of applying for benefits at different ages, Medicare, survivor benefits and disability. “It was an eye-opening experience,” Taylor said, and well-received by employees. Have info, will travel Andrew Hardwick, a public affairs specialist with the Social Security Administration in Houston, said he and his colleagues will go pretty much anywhere — companies, schools, faith-based organizations and fairs — to put on free presentations. The agency is especially eager to talk about electronic filing options as the 78 million baby boomers begin to retire. (Employers can request speakers through the agency’s Web site. Some, like Hardwick, can make presentations in Spanish.) Since then Taylor has put together a four-hour financial planning program that 60 employees attended. Taylor plans to host another session and emphasize to managers who might be hesitant about losing their employees for a half-day how they are likely to benefit by higher productivity. “I have to tell them it’s an investment,” Taylor said. June 11, 2009, Copyright 2009 Houston Chronicle Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[51]=new Array("http://www.personalfinancefoundation.org/employee-benefit-news.html","Employee Benefit News","","Home About Us ROI Model Research Press Contact Us Employee Benefit News says... Employers Raising the Bar on Financial Education By Leah Carlson Shepherd Worried that unenlightened employees are harming their financial lives and not making the most of their benefits, some employers are taking bold new strides to educate their workers about retirement planning and personal finance, introducing new programs that they hope will be enough to inform and motivate their workforce. Time will tell how well the new programs work. IBM's initiative Keeping a pledge to help employees transition from traditional pensions to self-directed 401(k)s, IBM recently unveiled a multimillion dollar personal finance education and counseling program for its 127,000 U.S. workers. IBM will invest up to $50 million over the next two years in the financial planning benefit, which is provided by Fidelity Investments and The Ayco Company, a Goldman Sachs firm and provider of financial counseling. Randy MacDonald, IBM's senior vice president of human resources, believes the scope and depth of the new program, called MoneySmart, is unmatched in this country. "This sets a new benchmark for defined contribution plans going forward," he says. MoneySmart kicked off in March with group educational seminars held during working hours and open to spouses and domestic partners. IBM employees now have unlimited access to confidential, one-on-one personal financial planning sessions by phone with specially trained Ayco financial planners and Fidelity financial representatives. Online planning tools and downloadable information also will be available through a firewalled, protected Web portal hosted by Ayco. Interested workers can read up on a broad range of personal finance issues, including investment choices, retirement income, college savings and debt management. Remarkably, employees who call for advice get to speak with the same person each time. "Including that [feature] was no small feat, but we managed to do it," notes MacDonald. "It's one of the differentiators." IBM will absorb the fees associated with MoneySmart for at least the first two years. At the end of the two years, costs will be evaluated again based on business affordability, employee satisfaction and program utilization, company officials state. "We believe this will be the new gold standard for employee retirement and financial planning," says IBM spokesman Clint Roswell. Employers are becoming more aware of the need for financial education and the negative impact financial stress has on the employee and the business, says Brad Barron, CEO at CLC, a legal and financial benefit provider based in Granite Bay, Calif. "There is an absolute shift," he observes. CLC offers financial education classes, paired with one-on-one coaching, through employee assistance programs (EAPs). "We've been doing more and more classes. The number of employers coming on board is exploding," Barron remarks. Revamping enrollment materials Seeking to nudge the one-third of employees who fail to enroll in its 401(k) plan, Wells Fargo Institutional Trust Services recently introduced some redesigned enrollment materials for the employer-sponsored retirement plans it manages. The new materials feature simple, action-oriented messages designed to educate employees and get more of them to save money in 401(k)s. The new enrollment materials incorporate findings from industry research and focus groups held with Wells Fargo clients and employees. The information includes streamlined messages and focuses on a simplified, three-step enrollment process: decide how much to contribute, choose an investment and enroll today. The emphasis on a three-step enrollment process is consistent with the adult learning principles that Wells Fargo often uses in its employee education meetings. One of these principles is that adults learn and remember best when information is grouped in threes. In Wells Fargo's new enrollment materials, the first set of investments is asset allocation options, where an employee can make one simple investment choice. The second set consists of individual mutual funds from which an employee can create their own portfolio. The third option is to have investments done for workers through an advice program. "Choosing investments for their 401(k) plan is often one of the most daunting decisions for employees," says Jennifer Plese, director of participant products and services for Wells Fargo Institutional Trust Services. "By presenting asset allocation options first, it provides a simple solution that many workers want." The redesign of Wells Fargo's enrollment materials is one component of the overall improvements and additions it is making to its enrollment strategies for clients. "We are simplifying all of our tools to be more action-oriented and developing new ways to get people into the plan," says Plese. "Research has shown that when employees are overwhelmed by choice, they will just avoid making a decision. Choosing not to save is not a good choice. We are trying to simplify the process." Best practices In their education programs, employers should emphasize basic personal finance issues, like budgeting and debt management. Don't talk just about retirement, advises Thomas Garman, a Virginia Tech personal finance professor and president of the Personal Finance Employee Education Foundation. In addition, employers should encourage workers to bring their spouses, or other people closely involved with the household finances, to all of the financial education meetings because that will improve their motivation to save, he asserts. "It's not rocket science, but it is hard decisionmaking," Garman says. "Employees are scared. They really need their hand held in a way, where the employer is saying We genuinely care about you.'" - L.C.S. Senior Editor Lynn Gresham contributed to this report. May 2, 2007 Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[52]=new Array("http://www.personalfinancefoundation.org/features/feature-3.pdf","Final Report: 30 Million Workers in America--One in Four--Are","","FOR IMMEDIATE RELEASE POSTED WEDNESDAY, MARCH 23, 2005 ATTENTION: BUSINESS - WORK/LIFE - PERSONAL FINANCE CONTACT E. Thomas Garman, Advisor, Researcher and Author Fellow and Professor Emeritus, Virginia Tech University 8044 Rural Retreat Court, Orlando, FL 32819 Web: www.EthomasGarman.net Telephone: 407-363-9048 PRESS RELEASE: ORLANDO, FL, Wednesday, March 23, 2005 ­ Financial Distress Among American Workers Final Report: 30 Million Workers in America--One in Four--Are Seriously Financially Distressed and Dissatisfied Causing Negative Impacts on Individuals, Families, and Employers "Thirty million workers in America--one in four--are seriously financially distressed and dissatisfied with their personal financial situations." Leading academic scholars from 10 universities and five business experts in personal finance have issued this unprecedented and definitive joint report of new findings on the levels of financial distress and dissatisfaction among workers in America. Sixteen additional experts from the business world joined to give support to the findings. "It's an ugly situation for employers when more and more of their workers are distressed about their personal finances and running hard just to keep their heads above water financially," says Garman, professor emeritus, Virginia Tech University. Why? The reason is that many workers who struggle with money matters are less productive at their place of employment because of their financial distress. Depending upon their place of employment, 30% to 80% of financially distressed workers spend time at work worrying about personal finances and dealing with financial issues instead of working. Although most working adults are satisfied with their personal finances and are not financially distressed, a substantial minority is having considerable trouble. They are experiencing more than moderate degrees of distress about their personal finances; instead they report "high" to "overwhelming" levels of financial distress. They are dissatisfied with their financial situation and worry about money, debt and bills. They usually are insecure about their personal finances for retirement. They worry about having enough money to live on once they retire. Often, they lack confidence about their abilities to manage personal finances. Many do not even have hope that they might one day be able to catch up financially. People at all income levels in society experience distress about financial matters. A large proportion of those who are financially distressed, 40% to 50%, report that their health is directly impacted negatively by their financial worries and problems. "Health problems caused by financial distress cost employers big money," says Garman. Further, "These findings should motivate employers to offer employees access to resources, counseling and advice to decrease their stress about money matters and improve their financial lives." The authors of this report make note of Federal Reserve Chairman Alan Greenspan's observation in February 2004 that "much of the apparent increase in the household sector's debt ratios over the past decade reflects factors that do not suggest increasing household financial stress" (Source at http://www.federalreserve.gov/boarddocs/ speeches/2004/20040223/default.htm). While the increase in household debt ratios may or may not suggest increasing financial distress, this report does note that financial distress comes from overuse of credit as well as money and spending problems. Furthermore, today there are 30 million workers seriously distressed about their personal financial problems. One co-author from business observes "How can we help this situation if society has not acknowledged there's a problem?" Governments and employers need to recognize, understand and internalize the sizeable nature of the financial distress problem among workers as well as its ramifications, and take appropriate actions. The broader question is what can be done to address the situation? The 4 ½ page summary report is supplemented with an additional 28 pages of key findings and cogent quotes from dozens of studies in Summary of Research Findings on Financial Distress and Dissatisfaction: Dissatisfaction with Financial Situation, Stress about Personal Finances, Living Paycheck-to-Paycheck, Stress about Retirement, Lack of Confidence about Ability to Manage Personal Finances, Health and Stress about Personal Finances are Related, and Distress about Health Care Costs and Bills. The list of references contains 170 research studies, reports, and media stories, many of which are available on the Internet. The statistical data in this report are uncomplicated and easy to read. See http://www.EThomasGarman.net to access the full report. Four recommendations are provided and elaborated upon for those who are financially distressed: (1) Follow the wise old saying to "spend less than you earn"; (2) Make and implement plans to prevent poor money management and reduce financial distress; (3) Determine the best options to relieve financial distress; and (4) Get help through the workplace. Another appendix provides a list of federal government and non-profit organization online resources that can help users build wealth. Contact information for the 15 authoritative co-authors and 15 other personal finance experts is provided in the report. See http://www.EThomasGarman.net to access the full report. End # # #");sQ1[53]=new Array("http://www.personalfinancefoundation.org/features/feature-3full.pdf","30 to 60 Million Americans are Seriously Financially Distressed:","","Financial Distress Among American Workers Final Report: 30 Million Workers in America--One in Four--Are Seriously Financially Distressed and Dissatisfied Causing Negative Impacts on Individuals, Families, and Employersa E. Thomas Garman, Virginia Tech Universityi Virginia W. Junk, University of Idahoii Jinhee Kim, University of Maryland iii Barbara J. O'Neill, Rutgers Universityiv Kathy Prochaska-Cue, Iowa State Universityv Aimee D. Prawitz, Northern Illinois Universityvi Frances C. Lawrence, Louisiana State Universityvii Rui Yao, South Dakota State Universityviii Robert O. Weagley, University of Missouri-Columbia ix Robert L. Weisman, University of Rochester Medical Centerx Glenn Carnathan, Saint Thomas Health Services xi Stacy Schaus, Hewitt Financial Servicesxii Matthew D. Hutcheson, Matthew D. Hutcheson LLC xiii David H. McKinley, McKinley Investment Groupxiv Marvin J. Brook, US Postal Servicexv All are available as press spokespersons With contributions from other personal finance experts (also available as press spokespersons), including:b Michael McAuliffe, David C. Jones, Ray E. Noftsinger, Michael Schiano, David A. Lander, Bernice B. Wilson, Dennis Ackley, Steven S. Shagrin, Al Otto, Thomas R. Watson, Bill Keenan, Brooks Hamilton, David L. Ireland, Kelly L. Reese, and Blanchard D. Warren. March 23, 2005 "More and more families are running harder and harder to stay in the same place or to reduce the amount that they are falling behind."1 In survey after survey, people say that they are financially distressed and dissatisfied with their personal finances. In this report, a national team of academic scholars and other experts conclude that 30 million workers in America--one in four--are seriously distressed and dissatisfied with their personal financial situations. Not only does this have negative consequences for the workers, their families and co-workers, and their employers, it also constitutes a serious social problem. The public and government need to recognize and internalize the sizeable nature of the financial distress problem as well as its ramifications, and take appropriate actions. This report pops the mythical bubble that urges people to ignore these problems or worse denies their existence for some perception of the "greater good." Lander, D. A. (2004). "It `is' the best of times, it `is' the worst of times": A short essay on consumer bankruptcy after the revolution. The American Bankruptcy Law Journal (78)2, 201-220 (quote page 209). 1 This definitive report is based on decades of research and it reports on reviews of over a dozen new research studies. This report takes data from 11 major business sponsored surveys, 10 of which were conducted 2004 by nationally known companies, such as MetLife, Principal Financial, American Express, Cigna, AARP, Caravan, Roper, and Gallup, as well as 10 recent published academic research studies and new not-yetreleased national research findings to be presented on April 9, 2005 in Columbus, Ohio at the national conference of the American Council on Consumer Interests (ConsumerInterests.org). Purposes of the Research This research was undertaken: (1) to identify the scope and severity of the problem of worker financial distress; (2) to seek a developing consensus on the findings, and (3) to present the growing amount of evidence to motivate employers to help employees reduce financial distress. This report serves as the basis of a journal article that is in preparation. Wide Consensus on Conclusions and Recommendations The statistical data in this report are uncomplicated and easy to read. No one disputes the basic statistical facts offered in this report, although some may disagree with their interpretation. The five conclusions and four recommendations offered in this report are widely agreed upon. Media Contact Information for Authors and Other Experts in Personal Finance A number of leading academic scholars and businesspersons who are experts in personal finance have issued this unprecedented joint report on the levels of financial distress and dissatisfaction among workers in America. A number of other experts in personal finance have also agreed to serve as authoritative sources for the media, and their contact information follows as well as contact information for the co-authors. One Appendix Summarizes Research And Another Lists Online Resources There is general agreement on the conclusions described below and summarized in the Appendix of this report. The contents of the Appendix, Summary of Research Findings on Financial Distress and Dissatisfaction, are arranged as follows: Dissatisfaction with Financial Situation, Stress About Personal Finances, Living Paycheck-to-Paycheck, Stress About Retirement, Lack of Confidence About Ability to Manage Personal Finances, Health and Stress About Personal Finances are Related, and Distress About Health Care Costs and Bills. Another Appendix lists a list of federal government and non-profit organization online resources that can help users build wealth. References This report provides a listing of References that includes 170 research studies, reports and media stories, many of which are readily available on the Internet. 2 Conclusions Although most working adults are satisfied with their personal finances and are not financially distressed, a substantial minority is having considerable trouble. 1. Thirty million workers--one in four--are suffering serious financial distress. This report takes data from 11 major business sponsored surveys conducted by nationally known companies, such as MetLife, Principal Financial, American Express, Cigna, AARP, Caravan, Roper, and Gallup, as well as 10 published academic research studies. Most of the research findings were reported within the past 12 months. A review of these studies concludes that 25% of working adults--that's one in four--are seriously financially distressed. This amounts to 30 million workers in America. They are experiencing more than moderate degrees of distress about their personal finances; rather they report high to overwhelming levels of financial distress. Furthermore, they report they are dissatisfied with their personal financial situations. Finally, research reveals that there are many negative consequences of financial distress upon individuals, their families and co-workers, and their employers. 2. People who are financially distressed are often living paycheck-bypaycheck with no money for extras. They are dissatisfied with their financial situation and struggle with money and debt and worry over bills. They usually are insecure about their personal finances for retirement. They worry they will not have enough money to live on once they retire. They often lack confidence about their ability to manage personal finances. Many do not even have hope that they might one day be able to catch up financially. 3. Poor health and financial distress are related. A large proportion of those who are financially distressed, 40% to 50%, report that their health is negatively impacted by their financial worries and problems. Those who are financially distressed often report they are experiencing a variety of unpleasant consequences of mental stress: poor health. They report disagreements with friends, family members and co-workers; restricted social life; and reduced job productivity. Also, they often report they are distressed about health care costs and medical bills. This distress can further unveil or aggravate a depressive or anxiety disorder. Such impairments can affect an employee's coping skills, attention and concentration ability to the point of decreased job attendance, reduced workplace performance and hamper job retention for employers. The relationship between poor health and serious financial distress suggests provocative clues that should be further investigated, particularly by the health care industry, employers, governments, and others involved in paying the costs for medical care. 4. Personal financial problems hurt workers' productivity. Thirty to 80% of financially distressed workers spend time at their place of employment worrying about personal finances and dealing with financial issues instead of working. These people often admit that their concerns about personal finances interfere with their work. They may take time from work to talk with co-workers about personal financial problems, communicate with creditors about past due payments, pay personal bills, balance a 3 checkbook, or talk to a lender about a debt consolidation loan. They may pay bills while at work. Because of their financial distractions, they often report they are unable to carry out their normal responsibilities, have to cut down their workload, and are not able to accomplish as much as usual. This cycle further interrupts employee performance, workplace attendance and poses greater financial burdens compiling stress and financial pressures. Personal financial distress, therefore, negatively impacts employers. 5. Financial problems are not confined to lower income levels. Distress about financial matters is experienced at all income levels in society. It is partly a function of income, particularly among those earning less than an average income. While there is an inverse relationship between income and financial distress, other factors provide a more accurate explanation. The amount of consumer debt is a factor, especially among those with high debt-to-income ratios. Financial distress also is very much a function of lifestyle, predominantly among people who spend almost every dollar they earn or use credit so they can live beyond their means. Varying Degrees of Financial Distress "How much financial distress are we talking about?" A normative perspective on the varying degrees of financial distress can be illustrated with a 10-point scale with the higher numbers indicating increasing distress. See Table 1. Table 1: Normative Labels for Levels of Financial Distress 12345 678910 Zero financial distress Very low financial distress Low or little financial distress Minimal financial distress Average financial distress Moderate financial distress High financial distress Very high financial distress Extremely high financial distress Overwhelming financial distress This report on financial distress is about adults experiencing "serious financial distress" in the 7-to-10-range as shown on the scale in Table 1. Financial Distress Levels by Household Income This report takes data from a variety of secondary and primary sources of data and uses deductive logic to determine that 25% of working adults are experiencing serious financial distress. Some studies (see appendix) have found that 60%, or more, adults are financially distressed. Reports of these higher levels may occur since when one working adult is financially distressed, it may well affect the heads of households, the spouses or 4 unmarried partners, and other adults and children living at home although the latter are usually not surveyed. Table 2 summarizes the research findings of financial distress experienced by different income groups. It shows the authors' estimates of the ranges of percentages of financial distress among the population according to level of household income. These conclusions are based upon a review of more than two-dozen studies cited in the appendix. Note in the table that for all income groups the estimated range of financially distressed employees is 25% to 60%. The highest percentages of financially distressed adults are more frequently found among those with lower household incomes. However, people in all income groups experience serious financial distress because income alone is not the single determinant that influences whether or not people experience financial distress. According to the Current Population Survey of the Bureau of Labor Statistics and U.S. Census Bureau data, it is estimated that there are 120 to 137 million adults in the workforce (full and part-time) in the United States. The 25% means 30 million people are seriously financially distressed. (This calculation uses the conservative workforce estimate [0.25 X 120M], otherwise the number is 34 million [0.25 X 137M].) This is a considerable portion of the U.S. adult population, comprising one in four working adults. Table 2 - Financial Distress Levels by Household Income Household Income Less than $14,999 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,000 $100,000+ All income groups combined Range of Levels of Financial Distress 80% to 90% 70% to 80% 50% to 60% 30% to 60% 30% to 50% 20% to 30% 9% to 25% 25% to 60% The authors of this report make note of Federal Reserve Chairman Alan Greenspan's observation in February 2004 that "much of the apparent increase in the household sector's debt ratios over the past decade reflects factors that do not suggest increasing household financial stress" (Source at http://www.federalreserve.gov/boarddocs/ speeches/2004/20040223/default.htm). This report comments that financial distress comes from overuse of credit as well as money and spending problems. Furthermore, 30 million workers are seriously distressed about their personal financial problems. 5 How can we help this situation if society has not acknowledged there's a problem? Governments and employers need to recognize, understand and internalize the sizeable nature of the financial distress problem among workers as well as its ramifications, and take appropriate actions. The broader question is what can be done to address the situation? Recommendations for the Financially Distressed This report offers four recommendations. 1. Follow the wise saying to "spend less than you earn." Those who succeed financially set goals, live below their means, take on new borrowing cautiously, pay off credit card debts monthly, and save and invest for the future.2 Choosing to live below one's means and saving and investing the difference, particularly when compared to those who spend all and often more than they earn, is a key to how people succeed financially. 2. Make and implement plans to prevent poor money management and reduce financial distress. Consumers need to plan ahead, spend less than they earn, distinguish between needs and wants, be more practical and realistic in making purchases, and comparison-shop. Tracking one's expenses for a month by writing them down will reveal that some extra money would be available if it were not spent on nonessential wants, in contrast to needs. Consumers need to make more smart financial decisions by paying down debt, building a cash reserve, increasing savings, investing for retirement, and reordering their expectations and financial priorities where appropriate. This is accomplished by consciously making tradeoffs between spending on today's wants for a more financially secure future. 3. Determine the best options to relieve financial distress. Eight options are available for people who are distressed about their personal finances: (1) evaluate your financial situation to identify where to cut back on expenses, (2) increase income, (3) target and pay down high-interest debt; (4) obtain a debt-consolidation or home-equity loan and use the proceeds to repay creditors only after learning to monitor expenses; (5) renegotiate credit repayment terms with creditors, (6) return secured assets to creditors; (7) seek budgeting and credit management assistance from a non-profit credit counseling agency, and (8) contact an attorney regarding the possibility of an unsecured debt settlement solution or declaring bankruptcy. 4. Get help through the workplace. Seeking help from one's employer is an option for many financially distressed individuals. Federal Reserve Board Governor Edward M. Gramlich remarked that employers should make financial education for their employees a lifetime responsibility."3 Other experts observe that "Comprehensive 2 3 Howard, C. (2001). Get Clark Smart. Hyperior: New York. Gramlich, E. M. (2004, May 20). Workplace financial education: Remarks by Governor Edward M. Gramlich. Speech to the second meeting of the Financial Literacy and Education Commission, Washington, DC. Taken on May 20, 2004 at http://www.federalreserve.gov/boarddocs/speeches/2004/20040520/default.htm. 6 financial education programs in the workplace provide a wide range of curricula that can better inform and prepare workers to handle their financial challenges, whatever they may be. These programs can go a long way toward helping allay financial stress and improving attitudes, morale and productivity.4" More than half of mid and large employers say they provide employee financial education because "it improves their productivity by reducing financial stress."5 Interested employees should ask their employer about financial education programs offered at the workplace, such as those provided by an independent financial education company, union, credit union, and/or a credit counseling agency. Endnotes Please reference this report in the following manner: Garman, E.T., Junk, V.W., Kim, J., O'Neill, B.J., Prochaska-Cue, K., Prawitz, A.D., Lawrence, F.C., Yao, R., Weagley, R.O., Weisman, R.L., Carnathan, G., Schaus, S., Hutcheson, M.D., McKinley, D.H., Brook, M.J. (2005, March 22). Financial Stress Among American Workers, Final report: 30 million workers in America--One in four--Are seriously financially distressed and dissatisfied causing negative impacts on individuals, families and employers. Independent report from the authors that is available at www.EthomasGarman.net. 1 Media Contact Information for Report Co-Authors i E. Thomas Garman, Author, Researcher and Advisor; Fellow and Professor Emeritus, Virginia Tech University, 8044 Rural Retreat Court, Orlando, FL 32819, USA; Tele: 407-363-9048; Email: tgarman@bellsouth.net; Web: wwwEThomasGarman.net. Dr. Garman directed Virginia Tech's National Institute for Personal Finance Employee Education and directed several awardwinning research studies. He has written many research articles and over 30 books, including Personal Finance and Consumer Economic Issues in America. ii Virginia W. Junk, Ph.D., Professor, University of Idaho, FCS 3183, Moscow, ID 83844- 3183; Tele: 208-885-7264; E-mail: vjunk@uidaho.edu. Junk researches decision making in retirement financial planning and in housing of those age 40 and older, as well as "sandwich generation" issues relating to financial, time and stress management. She teaches personal finance, and is author of 40 publications, including textbook supplements. Jinhee Kim, Ph.D., Assistant Professor and Extension Specialist, University of Maryland, 1204 Mary Mount Hall, College Park, MD 20742-7515; Tele: 301-405-3500; Email: jinkim@umd.edu. Kim has conducted award-winning research on employee financial well-being. She researches financially distressed consumers, financial management behaviors, absenteeism, and job outcomes. iv Barbara O'Neill, Ph.D., CFP®, CRPC, AFC, CHC, CFCS, Extension Specialist in Financial Resource Management, Professor II, Rutgers Cooperative Extension, Cook College Office Building, Room 107, 55 Dudley Road, New Brunswick, NJ 08901, USA; Tele: 732-932-9155, X250; Cell: 973-903-7869; Fax: 732-932-8887; E-mail: oneill@aesop.rutgers.edu; Web: www.rce.rutgers.edu/money2000 and www.investing.rutgers.edu. O'Neill has taught personal Field, R., & Vogt, V.A. (2004, April 1). Employee financial stress & investment advice needs. American Express Retirement Services. Quote page 16. 5 The role that financial education companies play in participant behavior in 401(k) plans (2004, November). Ernst & Young LLP Human Capital Practice, 13. 4 iii 7 finance topics to over 24,000 consumers and written over 1,500 newspaper articles. She is the author of Investing On A Shoestring and Saving On A Shoestring and co-author of Money Talk: A Financial Guide For Women. O'Neill researches relationships between financial well-being and health. v Kathy Prochaska-Cue, Associate Professor, University of Nebraska-Lincoln, 137 Mabel Lee Hall, Lincoln NE 68588; Tele: 402-472-5517; E-mail: kprochaska-cue1@unl.edu. An extension family economics educator, Prochaska-Cue has worked with thousands of families one-on-one as a financial counselor, and authored numerous research and financial education publications. vi Aimee D. Prawitz, Associate Professor, School of Family, Consumer, & Nutrition Sciences, Northern Illinois University, DeKalb, IL 60115; Tele; 815-753-6344; E-mail: aprawitz@niu.edu. Prawitz teaches graduate research methods courses, serves as a member of the editorial board of the Journal of Consumer Affairs, and she is the editor of the Journal of Consumer Education. Prawitz researches consumer satisfaction with elderly American's housing choices, attitudes toward credit cards, consumer complaint processes, and financial distress. vii Frances C. Lawrence, Williams Alumni Professor, Louisiana State University, School of Human Ecology, Baton Rouge, LA 70803; Tele: 225-578-1726; E-mail: flawrence@lsu.edu. Lawrence teaches university finance and consumer economics courses at Louisiana State University. Her research related to poverty and college students' money management is nationally recognized. viii Rui Yao, Ph.D., Assistant Professor, South Dakota State University, Box 2275A, Brookings, SD 57007; Tele: 605-688-5009.Yao teaches financial planning and consumer affairs and has conducted research on retirement adequacy. ix Robert O. Weagley, Chair of the Department of Consumer and Family Economics at the University of Missouri - Columbia., University of Missouri; Tele: 573.882-9651; E-mail: weagleyr@missouri.edu. Weagley is a registered investment advisor with Sundvold Capital Management, LLC (www.sundvold.com), an asset management and retirement plan specialty firm. He is Vice President of Marketing and Public Relations for the Academy of Financial Services. x Robert L. Weisman, D.O., Associate Professor, Department of Psychiatry, University of Rochester Medical Center; Strong Ties, 2613 West Henrietta Road, Rochester, NY 14623; Tele: 585-275-0300; E-mail: Robert_Weisman@urmc.rochester.edu. Dr. Weisman has written and lectured on the impact of personal financial stress, depression and workplace performance. xi Glenn Carnathan, Jr., Senior Vice President & Chief Human Resources Officer, Saint Thomas Health Services, 618 Church Street, Suite 520, Nashville, TN 37219; Phone: 615-2846847; E-mail: gcarnath@stthomas.org; Web: www.sths.com. Carnathan is the national leader of a system-wide financial well-being initiative for Ascension Health, Saint Thomas' parent and the largest not-for-profit health system in the United States with over 100,000 employees. Recipient of 2004 HR Excellence Award (based on Malcolm Baldrige National Quality Award criteria) sponsored by the Nashville Area Chamber of Commerce. xii Stacy Schaus, CFP®, Founder, Hewitt Financial Services, Hewitt Associates LLC, Personal Finance Center, 100 Half Day Road, Lincolnshire, IL 60069; Tele: 847-442- 4698; E-mail: stacy.schaus@hewitt.com; Web: www.hewitt.com. Schaus developed the Defined Contribution AllianceTM with investment managers across the country and also built the investment consulting team to support this program. She is an investment-issues committee member with the Profit Sharing Council of America. Schaus has written a number of articles on investing, defined contribution trends, and personal finance issues, 8 has been quoted in major publications, and has appeared as a guest on financial shows aired by CNBC and CNNfn. Matthew D. Hutcheson, M.S., CPC, AIFA®, CRC, MPF®, Owner/CEO, Matthew D. Hutcheson, LLC, 15924 Quarry Road, Lake Oswego, Oregon 97035, USA; Tele: 503-968-9783; E-mail: matt@erisa-fiduciary.com. Hutcheson is an Independent Pension Fiduciary who serves as named fiduciary or committee member for corporations on the NYSE, NASDAQ and the Toronto Stock Exchanges. He also serves as fiduciary or consultant conducting fiduciary audits, reviews and fee studies for privately held employers. Hutcheson is co-founder and Secretary/Treasurer of the ERISA Fiduciary Guild. xiv David H. McKinley, Managing Director, McKinley Investment Group, 2000 Main Street, Wheeling, WV 26003, USA; Tele: 304-230-2400; E-mail: dmckinley@wachoviafinet.com; Web: www.mckinley.wbsec.com; Mr. McKinley has worked in the financial planning and investment management industry since 1990. Prior to forming the McKinley Investment Group, Mr. McKinley was vice president of investments at a national investment firm, an investment analyst with a regional bank and trust's investment department, and assisted in managing the brokerage division of the same firm. He is quite knowledgeable on the topic of financial distressed employees. xv Marvin J. Brook, Manager/Controller Finance, San Francisco Performance Cluster, Northern California Division, United States Postal Service, P.O box 884474, San Francisco, CA 94188-4474; Tele: 415-550-5439; E-mail: marvin.j.brook@usps.gov. Brook develops and delivers financial education programs, including newsletters, videos and workshop presentations. xiii Brook has seen first hand the positive effects on employees when their financial situations improve. 9 Media Contact Information for Other Personal Finance Experts Wanting to Comment on These Research Findings Michael McAuliffe, President and CEO, Family Credit Counseling Service, 4306 Charles Street, Rockford, IL 61108; Tele: 800-994-3328, X-128; E-mail: michael.mcauliffe@familycredit.org; Web: www.familycredit.org/. Michael McAuliffe is a noted expert on personal financial planning and consumer debt and co-founder of Family Credit Counseling Service. He has assisted thousands of individuals and families with credit, debt, and money management problems. Dismayed that most credit counselors would remove the tithe from the budget of those in need, he formed a Non-Profit credit counseling agency based on Biblical teaching. He has contributed to numerous print publications and broadcast outlets. Family Credit Counseling sponsored a national poll on financial distress in December 2004. b David C. Jones, Ph.D., President, Association of Independent Consumer Credit Counseling Agencies, 11350 Random Hills Road, Suite 800, Fairfax, VA 22030; Tele: 703-934-6118; Email: assoc@aiccca.org; Web: aiccca.org. Jones recently retired as President and CEO of a major national credit counseling and consumer education agency. He concentrates his efforts in support of the credit counseling industry, especially consumer education initiatives, and actively assists in the development of effective state and federal consumer protection regulations for the credit counseling industry. b Liz Davidson, CEO and Founder, Financial Finesse, 111 N. Sepulveda Boulevard, Suite 305, Manhattan Beach, CA 90266; Tele: 310-802-6855 or 866-733-2677, x355; E-Mail: media@financialfinesse.com; Web: www.financialfinesse.com/ffinesse/jsp/home.jsp. Davidson founded Financial Finesse in 1999 to address the need for unbiased financial resources for investors to educate themselves on investing and financial planning. Today, Financial Finesse provides unbiased full service financial education for over 350 organizations and their employees. She is passionate about financial education and is a prolific public speaker, and she has been invited to speak at the leading Human Resources and Benefits conferences across the country. b Ray E. Noftsinger, Founder of Harbour Credit Counseling Services, Inc; Financial and Estate Planner, 101 N. Lynnhaven Road, #300, Virginia Beach, VA 23452; Tele: 757-340-2564, x302; E-mail: rayn@40debts.org; Web: www.40debts.org. Noftsinger has been involved in financial planning for all income levels in various specialties. He started Harbour in 1996 with one client and his organization currently assists 15,000 families in elimination of unsecured personal debt. Former President and Board Member Association of Independent Consumer Credit Counseling Agencies. Testified at Department of Justice hearing regarding credit counseling capacity for prebankruptcy certification and education. b Michael Schiano, Vice President of Outreach, InCharge Education Foundation, 2121 Park Center Drive, Orlando, FL 32835; Tele: 407-532-5640; E-mail: mschiano@incharge.org; Web: InChargeFoundation.org. Schiano is a Certified Credit Counselor and author of Spend Your Way to Wealth. He writes the "Ask The DebtBuster" column for Military Money and Young Money magazines. He hosts a nationally syndicated financial improvement radio show heard across the U.S. each day, and he hosts The Military Money Minute broadcast worldwide on the Armed Forces Radio Network. b David A. Lander, Attorney, Thomson Coburn LLP, One US Bank Plaza, St. Louis, MO 63101; Tele: 314-552-6067; E-mail: DLANDER@thompsoncoburn.com. Lander's practice includes representation of secured creditors, mortgagees, unsecured creditors, and debtors and unsecured b 10 creditors' committees. Lander is the historian of the credit counseling industry and a student and teacher of consumer credit issues. b Benice B. Wilson, Ph.D., CFCS. Extension Resource Management Specialist, Alabama Cooperative Extension System, P.O. Box 967, Normal, AL 35762; E-Mail: bbwilson@aces.edu; Tele: 256-372-4969. Wilson develops, implements and evaluates educational projects and programs relative to family and consumer economics, and resource management for families, individuals, youth, and the general public with a focus on urban and nontraditional audiences. b Dennis Ackley, President, Ackley Associates, 612 SE Cumberland Drive, Lees Summit, MO 64063; Tele: 816-695-4808; E-mail: dennisackley@hotmail.com; Web: DennisAckley.com. Ackley has been writing and speaking for more than a dozen years about how the current approach to retirement education does not and cannot work because it ignores essential elements needed to help adults become personally motivated to learn how to define, pursue, and achieve their personal retirement dream. In addition, until retirement education providers are required to have meaningful success measures that are tied directly to the individual's success, more Americans are doomed to fail to achieve their retirement income needs. b Steven S. Shagrin, JD, CFP®, CRPC®, CRC®, CELP, President, Planning For Life, 4657 Logangate Road, Youngstown, OH 44505-1713; Tele: 330-727-0444/888-456-4777; E-mail: Shags@PlanningForLife.info; Web: www.PlanningForLife.info. Shagrin is past president of the International Society for Retirement & Life Planning. Editor of Facts About Retiring in the United States (2001, HW Wilson Co.), and author of forthcoming Managing My Life: Managing My Money, (2005, Publications for Heart and Spirit Inc.) b Al Otto, AIF®, Co-Founder, White Horse Advisors, LLC, 6151 Powers Ferry Road, Suite 400, Atlanta, GA 30339; Tele: 678.322.3020; E-mail: al.otto@whitehorseadvisors.com; Web: www.whitehorseadvisors.com. Otto is a leader in the retirement planning industry and an expert on fees in retirement plans. He has contributed writings and been quoted in publications such as Plan Sponsor Magazine, Employee Benefit News and Employee Benefit Plan Review. Otto recently completed an audio CD entitled "Lost Money In Your Retirement Plan." Thomas R. Watson, President/CEO, Watson Communications International, Inc., 1809 NW Loop 281, Suite 100-160, Longview, TX 75604, USA; Tele: 903-758-0855; E-mail: tom@watson-training.com; Web: www.watson-training.com. Dr. Watson is the author of the soon to be published, The Great American Debt Opportunity: Turning Debt into Wealth. b Bill Keenan, Author, Financial Coach and Radio Host, 1129 Emerson Court, Suite B, Burnsville, MN 55337; Tele: 952-200-9019; E-mail: billk@debtfreeroad.com; Web: www.debtfreeroad.com. As the author of Spend Smart, Creating Wealth with no Room in your Budget, the co-author of Invest in Your Debt and host of Financial Fitness he has helped thousands of families discover how to achieve financial freedom by first becoming debt free. b David L. Ireland, Author and Professional Speaker; Retired Eastman Kodak executive, founder and President of Invest In Your Debt, Inc., 8005 Evadean Circle, Austin, Texas 78745; Tele: 512447-1990; E-Mail: IYD@InvestinyourDebt.com; Web: www.InvestinyourDebt.com. Ireland's Invest in Your Debt book shows that the most effective way to achieve financial freedom is to invest in ones debt and receive a risk-free, tax-free, double-digit return on ones debt investment. He lectures to employees in corporations, students at colleges and people in churches on the perils of and solutions to personal debt. b Brooks Hamilton, JD, Attorney-at-Law and a Master Pension Fiduciary, Brooks Hamilton & Partners, 38 Vista Hermosa, Santa Fe, NM 87506; Tele: 972-839-5260; E-mail: bhamilton@brookshamilton.com; Web: www.brookshamilton.com. Hamilton is Co-founder The b 11 REVERE Coalition, and co-founder and President of the ERISA Fiduciary Guild. Hamilton continues to be appointed as Independent Fiduciary by federal courts to assume fiduciary responsibility for retirement plans whose fiduciaries have failed in their responsibilities. Has appeared on CBS Evening News, CNBC, and in many newspapers throughout the country. b Kelly L. Reese, ChFC®, President, Financial Freedom Society, Inc., 14906 Winding Creek Court, Building A, Tampa, FL 33613; Tele: 813-960-3131; E-mail: elder@ffsi.com. Reese is a Christian Stewardship Counselor and author of The Art of Achieving Financial Freedom. He serves as a member of the board of the Christian Counseling Foundation. b Blanchard D. Warren, Seminar Leader and owner of Debts To Wealth, 5A Johns Avenue, Medfield, MA 02052; Tele: 508-359-4769; E-mail: webmaster@debtstowealth.com; Web: www.debtstowealth.com. Warren teaches a three-hour seminar about a system to eliminate all debt. 12 Appendix: Summary of Research Findings on Financial Distress and Dissatisfaction The contents of this Appendix are arranged as follows: Dissatisfaction with Financial Situation, Stress About Personal Finances, Living Paycheck-to-Paycheck, Stress About Retirement, Lack of Confidence About Ability to Manage Personal Finances, Health and Stress About Personal Finances are Related, and Distress About Health Care Costs and Bills. Dissatisfaction with Financial Situation · Bankrate.com Study. Bankrate.com (2003) conducted a Financial Literacy Study and found that 28% of people reported a lack of satisfaction with their finances. Sixteen percent of those surveyed were "not satisfied at all" with their personal financial situation and 12% were "not too satisfied." Describing their feelings when dealing with their personal finances, 24% in the Bankrate.com study reported they were "frustrated" and 10% were "confused." Asked how regularly they keep an emergency fund of at least 3 months' living expenses, 29% said they rarely or never did. Thirty-seven percent agreed with the statement that they could not afford to put money away for an emergency, with 55% saying they were very or somewhat concerned about an emergency fund. A quarter (24%) agreed with the statement that they would not be able to stick to a budget if they had one. Thirty percent reported they were very concerned or somewhat concerned right now that they are not able to pay their mortgage or rent, 29% were similarly concerned about being able to pay their credit card bills, and 45% were concerned about being able to put away enough for their retirement. · The semi-annual Principal Financial Well-Being Indexsm (The Principal, 2004; Principal Financial Well-Being, 2004) of American workers (at firms with 101,000 employees) reveals that, using a 5-point scale, 3 out of 4 employees (78%) are very concerned about their long-term financial future. Only 26% agreed with the statement "I am extremely happy about my current financial well-being;" 24% were neutral and 50% disagreed. A 2003 Principal study (Principal, 2003) found that half of those who expected a tax refund from the IRS planned to use the money to pay down short-term debt. · In a study of over 16,000 employees who lived in eight geographic regions of the United States employed by a large insurance company (Hira & Itote, 2001), there were substantial numbers of people who were dissatisfied with various aspects of their personal finances. Those reporting being very dissatisfied or dissatisfied on the following satisfaction indicators: ability to get ahead - 25.6%; use of money ­ 22.3%; long-term financial goals ­ 29.7%; meeting unexpected expenses ­ 34.5%; and unpaid balances on credit cards ­ 41.3%. · A number of studies that collected data from various segments of the population found that between 21.3 and 52.6% of respondents describe themselves as "dissatisfied" with their present financial situation. The respondents marked 13 · choices 1 through 4 on a 10-point stair-step scale of satisfaction with one's present financial situation. Those who are satisfied were instructed to mark the higher steps, choices 6 through 10. Those who marked choices 4 and 5 were in the middle range of satisfaction. o Grable & Joo (2003) found 34.7% of faculty and staff working for two universities in two mid-western states were dissatisfied. o Kim (2000) found that 41.5% of white-collar workers in three mid-western states were dissatisfied. o Kratzer, Brunson, Kim, Garman, & Joo (1998) study of well-paid blue-collar manufacturing workers in the south found 21.3% were dissatisfied with their financial situation. o Kim, Bagwell & Garman (1998) found white-collar workers in the corporate headquarters of a New York City advertising firm had a mean score of 5.7 on a 10-point scale where 10 is the highest level of financial satisfaction. o Joo (1998) found 52.6% of clerical workers in an eastern state were dissatisfied. o A 1990 study (Porter; Porter & Garman, 1993) of a random sample of taxpayers in an eastern state using a scale similar to Joo (1998) but with 11points (highest score was best) found that 30.8% marked themselves as dissatisfied marking choices 1 through 5) with their personal financial situation. The mean was 6.5, showing a slight skewness toward positive perceived financial well-being, with a standard deviation of 2.2. o A 2004 study by the InCharge Education Foundation (Sorhaindo & Garman, 2005) found that 28% of a nationally representative sample of working adults reported their overall financial distress/financial well-being was below average. This finding is consistent with other studies on financial satisfaction/dissatisfaction, financial distress and financial well-being. The general population typically reports a slight skewness towards positive scores, or above average, when asked about their financial condition. In other words, on a 10-point scale people typically report average scores of 5.7, 5.9, 6.2, or slightly higher where 10 is the highest or best score. Most working adults are satisfied with the personal finances and are not financially dissatisfied or distressed. Credit counseling clients are one of the most clear-cut populations of financially dissatisfied consumers. These are people who contact a non-profit credit counseling organization seeking assistance and advice in budgeting, credit and money management. Subjective measures, like a 10-point stair-step scale of satisfaction with one's present financial situation are often utilized in research (Festinger, 1957; Garman, 1999; Garman, Camp, Kim, Bagwell, Baffi, & Redican, 1999; Kim, 2000; Kim, Bagwell, & Garman, 1998; Kim, 2000; Kim, Garman & Sorhaindo, 2003; Porter, 1990; Winter & Morris, 1983). Self-reported numbers of these clients show that 75% to 90% expressed some high degree of financial dissatisfaction and distress owing to their personal financial affairs 14 · · · · · (Garman et al, 1999; Garman, 2001). This level of financial dissatisfaction and distress is much higher than in the general population. Garman (2004b) estimates that approximately 3 million people annually (not 9 million as cited in Schmitt, Timmons, and Cady in 2001) contact a non-profit consumer credit counseling service seeking assistance with their budgeting, money and credit problems. Over a six-year time period that amounts to 18 million financially troubled consumers who contacted a credit counseling agency.6 Since financial dissatisfaction does not go away for many of those who contact a consumer credit counseling agency, the authors of this report estimate that it is likely that approximately one-third of those who sought assistance from a credit counseling during the last six years are still struggling financially. Thus, we calculate that 33% of the 18 million financially dissatisfied and distressed who contacted a credit counseling agency in the past six years, or 6 million people, currently remain seriously dissatisfied with their personal financial situation. Bankruptcy represents another substantial group of financially dissatisfied adults. For the calendar year of 2004, about 1.5 million (1,563,145) consumers filed for personal bankruptcy (Bankruptcy Statistics, 2005). Sullivan (2003) notes that the genuine annual bankruptcy figures are really much higher because of jointly filed bankruptcy petitioners. Bankruptcy expert Elizabeth Warren agrees (Garman, 2005, March 17). Based on the 1,563,145 filings in 2004, Warren notes that there were 475,712 cases of joint petitions. That means, notes Warren, that the 2004 multiplier is about 1.304. (In 2001, the multiplier was 1.319 [see Warren, Thorne, & Sullivan, 2001].) Using Warren's multiplier of 1.304 for the number of married couples filing for bankruptcy, the number of adults impacted by bankruptcy in 2004 was 2,038,341 (1.304 X 1,563,145). These experts also observe that bankruptcies really affect a total of about 5 million people annually in households when one counts both the petitioners' spouses as well as their children. Combining data from the American Bankruptcy Institute and previous annual data (Quarterly U.S. Bankruptcy Statistics, 2005) show that there have been 8,678,826 non-business, or personal, bankruptcies for the six-year period between 1999 and 2004. Since consumers cannot declare bankruptcy again for six years, these numbers are mutually exclusive. Applying Warren's proportional estimate of bankruptcies with spouses (1.304) means that over 11 million (11,317,189 = 1.304 X 8,678,826) adults declared bankruptcy during the past six years. Next year more than a million consumers (1,281,360) who declared bankruptcy six years ago in 1990 will be eligible again, and that point has been observed by others (Bankruptcy boomerang, 2003). Since financial dissatisfaction just does not simply disappear for many of those who file bankruptcy, the authors of this report estimate that it is likely that approximately 50% of those who filed for bankruptcy during the last six years are Fewer than 10% of credit counseling clients declare personal bankruptcy (Elliehasuen, Lundquist, & Staten, 2003; Staten, Elliehausen, & Lundquist, 2002). 6 15 still struggling financially and are dissatisfied with their personal financial situations. Thus, we calculate that half of the 11,317,189 adults who filed for bankruptcy in the past six years, or 5.6 million people (11,317,189/0.5), currently remain seriously financially dissatisfied. Stress About Personal Finances · An American Express survey found that 60% of working Americans were experiencing moderate (41%) to high (19%) levels of financial stress. Thirtynine percent were stressed by dealing with debts and 38% were stressed by paying regular bills (2nd American Express, 2004; Field & Vogt, 2004). The stress levels by income groups were: 30% of people with incomes up to $30,000; 22% $30,000-$50,000; 22% $50,000-$75,000; 17% $75,000$100,000; and 9% of those with incomes of $100,000 or more. · In a MetLife Study of Employee Benefit Trends (2003), 69% of employees surveyed were concerned with "having enough money to make ends meet." · A Roper ASW survey for Money magazine found that 6 in 10 respondents say they worry a lot or sometimes about their finances, about twice as many as worry about their self-esteem, jobs, marriage, and friendships (Chatzky, 2003). · A Caravan Saray poll (2004) found nearly three in four adults age 18-64 (72%) say paying current bills (54%) or paying off debt (18%) are usually their main financial concerns each month. · A Consumer Federation of America and Credit Union National Association poll (Consumers say, 2003) found 46% of adults said they were concerned about meeting all their monthly payments on all types of debt other than their mortgage, and half of those, 28%, reported they were very concerned. When asked what they would do with a $5,000 windfall, 46% said they would pay down some debt. · A Family Credit Counseling Service national survey (Research Report: Financial Stress Survey, 2004; Kidd, 2005) of people carrying credit cards asked what they would do with an unexpected $1,000 gift, and three-quarters (73.3%) said they would use it to pay down debt. · Fifty percent of middle-income Americans ($25,000 to $75,000) revealed they were worried about their financial condition, according to a poll by Consumer Federation of America (Middle Americans become, 2003). More than twothirds (69%) of those with incomes under $25,000 reported they were worried about their finances, and they are likely to have too little savings and too little income. · A ComPsych survey (Reality of financial trouble, 2004) of employees' financial health found half (49%) doing poorly: 27% noted "I am one major setback away from financial disaster" and 22% marked "I am worse off than last year, with less savings/income and more debt than before." The remaining half (51%) reported they were the same or better off than before: "I am about 16 · · · · · · · the same as last year, with no changes in savings/income or debt" (23%); "I am better off than last year, with more savings/income and less debt that before" (22%); and "I am in the best financial shape ever, with bountiful reserves and very little debt" (6%). A ComPsych survey of employees found that personal finances cause stress in 36% of employees (ComPsych's Tell-It-Now, 2001). Financial Finesse, a financial education company with approximately 300 different companies as clients and 250,000 employees, regularly received telephone calls from employees seeking assistance. Thirty-nine percent of callers requested assistance with consumer debts and 17% called about budgeting and savings (Garman, 2005, March 22). These numbers were similar to the previous year (Debt, retirement, 2003). A Gallup Organization poll (Moore, 2004) found that 17% of Americans are very or moderately worried about paying the minimum amount due on their credit cards. Twenty-two percent were not too worried, and 46% were not worried at all. A Family Credit Counseling Service national survey (Research Report: Financial Stress Survey, 2004) found that the biggest financial fear of people carrying credit cards was that they'll never get out of debt (32.5%). A WoldWIT and E-Duction survey of 10,000 professional women, it was found that 90% of women who pay more than five bills while at work are moderately or considerably stressed about personal finances (People who pay, 2003). Twenty-seven percent of respondents to a Los Angeles Times survey reported that their personal finances were shaky, and 40% said they had difficulty making car and insurance payments and other installment loans (Atkinson, 2001). Employees who are financially distressed sometimes bring their financial troubles to the workplace with the result being reduced productivity. Researchers have determined that approximately15% of workers are so financially distressed that it negatively impacts the employer's bottom line (Garman, Leech & Grable, 1996). The full extent of the costs is unknown. Living Paycheck-to-Paycheck · The MetLife Study of Employee Benefit Trends (2004) found that 28% of full-time employees report they sometimes have trouble paying their monthly bills, and 42% say they live paycheck to paycheck. The parallel 2003 MetLife Study of Employee Benefit Trends (2003) found that 52% of employees surveyed report they manage their finances by living paycheck-to-paycheck. Among those with a household income of less than $30,000, 87% say they live paycheck-to-paycheck and 65% of those earning $30,000 to $49,999 say the same. Among people who earn $75,000 or more a year, 34% live on the 17 · · · · edge financially (Yip, 2003). More 21- to 30-year-olds than 41 to 50-year-olds live paycheck to paycheck; however, 51% of those nearing or in the traditional retirement age range of 61 to 69 do, too. In a CIGNA survey (2004), 39% of employees feel they are "underwater" financially, stating that they can barely keep up with bills. As a result of these bills, many people reported they had little discretionary income to save for college or retirement. More than two-thirds (68%) of parents with children under age 18 are extremely or very concerned about having enough money for their children's education. A Caravan poll found that nearly three in four adults age 18-64 (72%) said paying current bills (54%) or paying off debt (18%) were usually their main financial concerns each month (Caravan Saray, 2003). Women (78%) were more likely than men (65%) to be focused on paying current bills or debts. In a study of 16,000 employees working for a large insurance company who lived in eight geographic regions of the United States (Hira & Itote, 2001), over half (55.9%) reported that they handled large or unexpected expenses by using credit cards. Other coping mechanisms were borrowing from family or friends (16.4%) or not paying other bills (17.9%). Data on living paycheck-to-paycheck go back a few years. A revealing question on a 1996 poll reported by The Washington Post (Chandler & Morin, 1996) found that 75% of Americans recently faced at least one significant financial problem (e.g., unable to save for future needs, delaying medical care, communications from a collection company). A poll reported that same year in USA Today (Coping, 1996) noted that two-thirds of Americans indicated they had trouble paying bills and worried about money. Stress About Retirement. · The American Express Retirement Services' 2004 National Survey on Financial Stress and Retirement Savings found that 44% were stressed about retirement. The stress levels by income groups were: 30% up to $30,000; 22% $30,000-$50,000; 22% $50,000-$75,0000; 17% $75,000-$100,000; and 9% $100,000 or more (Field & Vogt, 2004). The American Express study found that people's financial stress in 2004 is very similar to what was found in 2002. In 2004, 22% reported that they were either very interested (14%) or somewhat interested (7%) in financial advice on debt consolidation (21% in 2002). · A Hewitt Associates survey of 5,000 employees (Survey Findings: Your Financial, 2005) found that "employees lack very basic knowledge of their 401(k) plans." Half of workers "say they are less than knowledgeable or not knowledgeable about investing." · A MetLife study (With fear of outliving, 2004) found that one out of four employees (25%) have not done any specific retirement planning. Thirty-one percent say they are "on track" for reaching retirement goals, 30% are 18 · · · · · · somewhat behind and 23% are significantly behind. Nearly half (48%) believe they will have to work full- or part-time in retirement. Among employees in the 41-to-60 year age group, only 4% have reached their retirement goals. In this age group, 48% of employees say that outliving their savings as the greatest retirement fear. Confirming findings are in the 2004 MetLife Study of Employee Benefit Trends (2004) of employees as similar numbers report being extremely concerned about outliving their retirement money and only 24% report they are on track for reaching retirement savings goals. A poll by Putnam Investments found that nearly half (46%) of current workers are resigned to accepting that they will struggle financially in retirement (Many workers, 2004), and another 13% believe they cannot amass enough to retire so they are not going to save for retirement at all. In a CIGNA (2004) survey of retirement awareness, 47% said they were either confused, apathetic or felt their retirement planning situation was futile. A Principal Financial Group survey of American workers found the average expected retirement age was 65, although 20% did not plan on retiring (The Principal, 2004). More than half (53%) expected that their standard of living in retirement would decline. Seven in ten (71%) did not have a plan for transitioning retirement savings into a stream of income in retirement. A Thrivent study found that more than half of non-retired Americans had either not yet begun saving for retirement or reported they had saved less than $10,000 (Thrivent Financial, 2004). Sixty-two percent had never estimated how much they needed to save for retirement. Sixty percent of adults were not confident that Social Security would exist when they retire (Caravan Saray, 2004). The percentages lacking confidence varied for different age groups: 55-64 years (30%), 45-54 (55%), 35-44 (70%), 25-34 (76%), and 18-24 (53%). One professional woman summed up the challenge of saving for retirement with the comment that "Life just gets in the way of saving" (Duka, 2004). Lack of Confidence About Ability to Manage Personal Finances · An AARP study (Block, 2004) found that more than a quarter of baby boomers described themselves as worse money managers than their parents. · A Roper Starch Worldwide survey (Stoneman, 1998) found 82% of lowincome adults lacked confidence in their ability to plan for their family's future. Even 64% of those in the highest income group lacked confidence. Health and Stress About Personal Finances are Related · Health is negatively affected by financial stress (Drentea & Lavrakas, 2002; Hendrix, Spencer & Gibson, 1994; Peirce, Frone, Russell & Cooper, 1994). · Financial stress negatively impacts both physical and psychological health (Kim & Garman, 2003; O'Neill, Xiao, Sorhaindo, & Garman, in press). 19 · · · · · · Both the amount of credit card debt and stress regarding overall debt are associated with health (Drentea & Lavarkas, 2000). A poor debt-to-income ratio is associated with poor health. Having more stress about overall debt was associated with worse health. Consumer indebtedness for such things as housing, home entertainment systems, appliances, vehicles, and student loans may be a "chronic strain on an individual's financial well-being, and ultimately emotional well-being" (Drentea & Lavarkas, 2000). Perceived financial security has been found to be a significant predictor of emotional distress (Jackson, 1997). A Family Credit Counseling Service survey (Research Report: Financial Stress Survey, 2004) of a nationally representative sample of 1,590 adults who carry credit cards found that half (50.8%) said that at times they can't sleep because of stresses about personal finances. Over one-third said it was hard to concentrate. Another 29.1% said they sometimes feel sick to their stomachs, and 26.3% reported that they get headaches. Almost one in ten (8.1%) reported they went to a doctor because of their financial distresses. Onequarter reported never having any physical effects. One study (Kim, Garman & Sorhaindo, 2003a 2003b) examined the relationships among credit counseling, financial behaviors, financial stressor events, perceived financial well-being, and health among clients of a large credit counseling organization in a one-year follow-up study over a time period of 18 months. Credit counseling and participation in a debt management program, both designed to improve one's personal finances, reduced financial stress and improved people's perceived financial well-being and health. A study by Bagwell (2000) found more than half (57%) of new credit counseling clients reported their health status being negatively affected by their financial problems. Of those, 52% reported general stress, anxiety and worry, 23% reported headaches, 18% general health problems, 13% sleeping disorders, and 12% stomach problems. An illustrative client comment was "I feel very stressed mainly because I do not see any solution to our financial situation. Headaches, depression and poor diet is [sic] the results of worrying." Another wrote, "Yes, I lose a lot of sleep. I get all these problems on my mind. Feel sick a lot, at times, when I do sleep some it's the first think [sic] on my mind and I feel so depressed, I don't even want to get out of bed." Examples of specific health problems associated with finances that were reported by financially distressed employees (O'Neill, Xiao, Sorhaindo, & Garman, in press) are: "Staying behind on bills made me very nervous." "I can't sleep because of worrying about paying bills." "Caused anxiety and depression to be worse than it was." "Stressed out, overwhelmed with anxiety." "Could not afford to go to doctor when I was sick." 20 · · "Can't afford to eat healthier." "I have high blood pressure from the stress." "Cost of medication." "I have been depressed and gained weight." "Stress, catch sickness easier." A study of a large number of new credit counseling clients found they reported poorer health than the general population (Garman, 2004a). Forty percent of new credit counseling clients report their health has been negatively affected by their financial problems. Three-quarters of this 40% specified the nature of their problem, and the most cited problem was stress followed by sleep disorders. The range of health for credit counseling clients was: very good, 24%; good, 43%; satisfactory, 27%; and poor, 7% (Garman, 2004a). This contrasts with the health reported by the general population by the Gallup Organization (Personal health issues, 2001): Excellent, 29%; good, 49%; only fair, 17%; and poor, 5%. Comparing the responses on the two 4-point continuum scales with the Gallup categories provides the following: Excellent Good Fair Poor Health Health Health Health 29% 49% 17% 5% 24% 43% 27% 7% General Population Credit Counseling Clients · · Encouragingly, 43% report that health improved soon after enrolling in a debt management program of a credit-counseling agency (O'Neill, et al, in press). . The relationship between poor health and serious financial distress suggests provocative clues that should be further investigated, particularly by the health care industry, employers, governments, and others involved in paying the costs for medical care. Distress About Health Care Costs and Bills · "One-half of Americans say they have found medical bills to be a source of financial stress within the past two years (18% major source; 32% minor source." Data are from the 2003 Health Confidence Survey conducted by the Employee Benefit Research Institute and Mathew Greenwald and Associates, Inc., using data from their 1998 through 2003 Health Confidence Surveys (2003 Health Confidence Survey). Data from the most recent Health Confidence Survey (2004 Health Confidence Survey) found one-quarter of people experiencing medical care cost increases reduced retirement savings contributions because of medical costs. One-quarter reports, "They have used up most or all of their savings to pay health bills." · The Employee Benefits Research Institute report titled Financial Stress Related to Health Care Costs (Financial Stress Related, 2003) using 21 · · · information from the 2003 Health Confidence Survey found that more than 4 in 10 (41% ­ up from 35% in 2002) are "not too confident" or "not at all confident" about being able to afford health care in the next 10 years or until age 65 when they become eligible for Medicare. Nearly half (up from 44% in 2002) are "not too" or "not at all" confident in their ability to afford health care once they are eligible for Medicare, without financial hardship. The results of a study on increasing health care costs by American Express Retirement Services (Field & Vogt, 2001) found that "73% of workers responded they were either somewhat or very concerned about how rising health care costs might impact their ability to fund their retirement and other financial goals." Over half say that the impact of rising health care costs has either considerably (15%) or somewhat (38%) increased their financial stress level. A 2003 American Express study (Field & Vogt) again reported that overall health care expense increases were having a measurable impact on the level of personal financial stress, with 54% indicating at least "some" or "considerable" increases in financial stress. 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The Principal financial well-being index (2003, April). The Principal Financial Group. Taken on August 20, 2003 from http://www.principal.com/wellbeing/wellbeing_apr2003_execsumm.htm. Q&A (2003, November 27). CardWeb.com. Taken on December 22, 2004 from http://cardweb.com/cardlearn/faqs/2003/november/24.xcml. Quarterly U.S. bankruptcy statistics (2005). American Bankruptcy Institute. Taken on January 30, 2005 from http://www.abiworld.org/Content/NavigationMenu/Online_Resources/Bankruptcy_Statistics/ABI _-_Bankruptcy_Statistics.htm Reality of financial trouble hits hard for employees, according to ComPsych (2004, February 9). ComPsych. Press release. Taken on January 17, 2005 from http://www.compsych.com/jsp/en_US/core/home/pressReleasesList2003.jsp?cid=83&p=2. Research Report: Financial Stress Survey (2004, December). 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Staten, M.S., Elliehausen, G., & Lundquist, E.C. (2002). The impact of credit counseling on subsequent borrower credit usage and payment behavior (Monograph No. 36),Washington, D.C.: Georgetown University, Credit Research Center. Stewart, W.F., Ricci, J.A., Chee, E., Morganstein, D., &Lipton, R. (2003). Lost productive time and cost due to common pain conditions in the US workforce. The Journal of the American Medical Association, 290(18), 2443-2454. Stoneman, B. (1998, February). High finance, hard sell. American Demographics, 43-47. Study finds pain at work costs billions (2003, November 18). CNN.com. Taken on November 20, 2003 from http://www.cnn.com/2003/HEALTH/11/11/pain.costs.ap/. Study: Workers in pain don't excel (2003, November 11). Plan Sponsor. com. Taken on November 13, 2003 from http://www.plansponsor.com/pi_type10/?RECORD_ID=23122. Sullivan, T. (2003, November 20). Bankruptcy and consumer credit in America. Speech to Association for Financial Counseling and Planning Education. Savannah, Georgia. Surf's up for crackdown on credit repair scams (2000, August 21). Federal Trade Commission, Press release. Taken on March 22, 2004 from http://www.ftc.gov/opa/2000/08/credit.htm. Survey findings: Your future financial security 2005. Hewitt Associates LLC, 1-24. Thrivent Financial study finds retirement funding a "guessing game" for most Americans (2004, January 28). Thrivent Financial for Lutherns, press release. Taken on January 15, 2005 from http://www.thrivent.com/newsroom/news/index.phtml?id-186. 2005 New Year resolutions (2005). Cambridge Credit. Taken January 18, 2005 from http://www.cambridgeconsumerindex.com/#. Turner, J. (2001, August). Coping with stress. Money Management Newsletter. University of Florida. Taken on February 24, 2004 from http://fycs.ifas.ufl.edu/CFS01.htm. Two steps back: The dual mortgage market, predatory lending, and the undoing of community development (undated). 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Taken on March 4, 2004 from http://www.metlife.com/applications/corporate/wps/cda/pagegenerator/0,1674,0250. www.myfico.com. Wolk, M. (2004, January 16). The pitfalls of plastic: Credit-dependent Americans pushed to the edge. MSNBC's Eye on the Economy. Zuckerman, M. B. (2004, March 15). America's high anxiety. U.S. News & World Report. Taken on March 30, 2004 from http://www.usnews.com/usnews/opinion/articles/040315/15edit.htm. 30 Internet Resources to Build Wealth Barbara O'Neill, Ph.D., CFP® Extension Specialist in Financial Resource Management March 23, 2005 Below is a list of federal government or non-profit organization online resources that can help users build wealth: America Saves www.americasaves.org Provides information about savings topics such as finding money to save, building wealth through homeownership, and compound interest. Information is also provided about U.S. savings campaigns. American Savings Education Council/Choose to Save Partnership www.asec.org (Click on "Savings Tools") Includes downloadable publications and interactive online tools such as the Ballpark Estimate retirement savings calculation worksheet, the Retirement Personality Profiler, and financial planning calculators. Certified Financial Planner Board of Standards, Inc. (CFP Board) www.cfp-board.org Provides consumer information about financial planning topics and information about how to find a certified financial planner in a particular geographic region. Federal Citizen Information Center www.pueblo.gsa.gov Provides an online source of federal government publications, including both health and personal finance topics. Financial Security in Later Life Web Site www.csrees.usda.gov/fsll (Click on "Tools For Consumers") Cooperative Extension System site includes links to a variety of online financial education resources with a focus on planning for retirement and long-term care. Guidebook to Help Late Savers Prepare for Retirement www.nefe.org/latesavers/index.html Provides a downloadable 51-page booklet that describes over a dozen catch-up strategies for middle-aged late savers who are trying to make up for lost time. Internal Revenue Service Web Site www.irs.gov 31 Provides information on federal income tax topics and downloadable forms and publications. Investing For Your Future www.investing.rutgers.edu Cooperative Extension System basic investing home study course includes 11 units on investment topics, a study guide, monthly investment messages, and links. Investment Company Institute www.ici.org Provides information about mutual fund investing from the industry's trade association. My Money.Gov Web Site www.mymoney.gov Financial Literacy and Education Commission website contains financial information in English and Spanish from a variety of federal government agencies on the following personal finance topics: budgeting and taxes, credit, financial planning, home ownership, home equity, mortgages, paying for education, privacy and fraud, responding to life events, retirement planning, saving and investing, and starting a small business. Users can download these publications from the links provided and can also order a free My Money Toolkit, sent via U.S. mail. National Association of Investors Corporation www.better-investing.org NAIC website provides information about investing in stock and resource materials for investment clubs. National Endowment For Financial Education www.nefe.org NEFE website contains information about NEFE financial education programs and publications for youth and adults. National Foundation for Consumer Credit www.nfcc.org Includes information about credit-related topics and information about how to find a nonprofit credit-counseling agency in a particular geographic region. PowerPay http://extension.usu.edu/cooperative/powerpay/ or http://powerpay.org Utah State University Cooperative Extension website provides a debt reduction calendar and estimated time and cost savings for users who continue to pay the same amount to creditors monthly. When a creditor is repaid, the monthly payment that was previously paid is added to the monthly payment due to a remaining creditor. Users input their 32 personal data (e.g., name of creditors, outstanding balance, monthly payment, and interest rate) for a personalized analysis. Rutgers Cooperative Research and Extension Money and Investing Web Site www.rce.rutgers.edu/money2000 Includes dozens of downloadable personal finance publications, online presentations, self-assessment quizzes, conference summaries, federal marginal tax rate tables, and other financial education resources for consumers. Save For Your Future www.saveforyourfuture.org or www.asec.org/sfyf Website includes publications, posters, and online calculators from a 2003 national campaign to promote retirement savings. U.S. Savings Bonds Web Site www.savingsbonds.gov or www.easysaver.gov Provides information about how to purchase U.S. savings bonds and current rates of return. 33");sQ1[54]=new Array("http://www.personalfinancefoundation.org/docs/Teach to the Test.pdf","Workplace Financial Program Providers Should Teach to the","","Should Workplace Financial Program Providers Teach to the "Test of Financial Health"? Yes! If a financial program is to be successful, it should "teach to the test." The Personal Financial Well-Being (PFW) scale is a valid and reliable measure of "financial health." Both the communications efforts to reach employees and the financial literacy program itself should aim to help employees reduce their financial distress and increase financial well-being, and that is what the PFW measures. Employers may use the PFW (with permission) at no cost. The Personal Finance Employee Education Foundation does not provide financial programs; instead we recommend the best. The Goal of Quality Workplace Financial Programs A workplace financial program that accomplishes the goal to increase employee financial well-being will over time result in more and more employees reporting higher financial well-being. Every year perhaps 10%, 20% or even 30% of employees should be able to self-report higher scores on their perceptions about their personal finances. These employees are those who are more satisfied with their financial well-being and less stressed about financial matters. These are good workers, too. If the measured financial health of employees is not rising over time, the employer should consider firing the primary financial program provider. Alternatively, perhaps the employer could give the provider one year to make improvements in their communications and financial program. The provider can make needed changes, they should, and if they can't they quickly will learn how. After all the financial provider work for the employer and they should deliver what is asked. A quality financial program should have multiple components to truly reach all the employees and provide the best resources to help employees improve their financial lives. Teach to the test: Aim to reduce employees' financial distress and improve their financial well-being. How? Communicate these key messages. The Key Messages of Quality Workplace Financial Programs 1. Emergency Savings. Without $500, $1,000 or $2,000 in emergency savings, depending upon the income of the employee, simply living life and its frequent financial challenges, will continue to regularly wreck that person's finances...every year...forever. Having an emergency savings fund reduces financial distress. 2. Pay Down Bills. Employees who usually make the minimum payment or just a little more will never get out of credit card debt. One who owes $8,000 on credit cards at 18% interest and makes a 3% monthly payment will pay on that debt for 11 years--assuming they never put another charge on the card. Making progress reducing credit card balances reduces financial distress and increases financial well-being. 3. Spending Plan. Most employees do not make a budget or follow one. They have no spending plan. Employees who have some kind of written spending plan--no matter how elementary--are those who have more confidence about their personal finances. Having a spending plan reduces financial distress and increases financial well-being. 4. Benefits Selections. Six in10 employees make their selections among their employer-provided benefits in less than one hour; many take less time. Wisely made benefit choices help employees balance their budgets as well as find money to contribute to their retirement plan, frequently with no change in one's net pay. The result is more saving and better financial well-being. The Result of Providing Employees Quality Financial Programs When effectively communicated these key messages cause employees to live their everyday financial lives with more satisfaction as well as prepare well for a financially successful retirement. Quality Requires a Team of Financial Providers It is impossible for one primary financial provider no matter how excellent to offer employees easy access to all of the financial resources to genuinely help them change their financial lives for the better. It is widely understood that 401(k) education providers are not as successful as they should be since the great majority of employees are not saving enough for retirement. Many employees are living paycheck-to-paycheck and it is not just those with moderate or low incomes. Employers should offer employees the multiple services and products of a team of quality financial program providers who coordinate their services. Communications to employees on the key messages should regularly emphasize the availability of provider services such as credit counseling, credit union, benefits selection education, income tax preparation, speedily paying off a home mortgage, 401(k) education, and financial advice.");sQ1[55]=new Array("http://www.personalfinancefoundation.org/questions/Strategies-on-Website-Oct-08.pdf","Strategies for Motivating Employees To Develop Positive Financial Behaviors","","Strategies for Motivating Employees To Develop Positive Financial Behaviors: An Application of the Transtheoretical Model of Behavior Change© 1,2,3 "If you spend everything you make, you will never be wealthy," goes the saying. It's true. As today's economic times amply demonstrate, Americans have gone `round the bend on this one, according to the Federal Reserve Board. 4 Consumers continue to spend it all and then some. Using credit to spend more than one earns makes saving money from current income nearly impossible. As a result, millions are struggling financially and many of those near retirement lack the funds required for a comfortable life. Financial literacy is knowledge about spending plans, credit management and savings. Lack of good financial literacy behaviors is the major reason employees do not save adequately for retirement. In addition to the rising cost of living (e.g., gasoline, food, mortgage payments), reasons for personal financial struggles include poor financial planning and management practices by consumers. They prove the old adage, `If you fail to plan, you plan to fail." The declining financial health of employees has serious bottom-line implications for employers. Employees who do not manage their personal finances typically are less productive and experience higher health care expenses. Many employers recognize these problems but do nothing. Others believe their current retirement plan provider offers a financial education program that successfully changes employees' personal financial behaviors for the better. Unfortunately, this is a false assumption. The Personal Finance Employee Education Foundation tells employers: "If a financial education provider cannot prove their program works, don't hire them or fire them." A recent study by researchers at the Personal Finance Employee Education Foundation (PFEEF) indicates that even though employees are experiencing stress related to such financial topics as retirement planning, debt management, and budgeting, about half are unwilling to learn more about these stressful topics in order to change their situations. 5 PFEEF researchers are working to establish best practices for workplace financial program providers. One goal is to help them motivate employees who are not yet ready to take that first step toward a better financial life. The strategies being tested are based on the successful Stages of Behavior Change Model developed and tested by Prochaska and colleagues 6 for more than 30 years. The model can target employees for financial education based on their readiness for change. Ironically, those individuals most in need of financial education are most likely to avoid it. Simply put, those who are not ready to learn about improving financial practices are not likely to attend financial education seminars or workshops, nor will they participate in online learning. Even if ©Personal Finance Employee Education Foundation, 2008. Xiao, J..J., Prawitz, A.D., Prochaska, J. M., O'Neill, B., Kim, J., & Garman, E. T. (2008). Personal Finance Employee Education Foundation (www.PersonalFinanceFoundation.org). 3 Please cite this paper as follows: Strategies for Motivating Employees To Develop Positive Financial Behaviors: An Application of the Transtheoretical Model of Behavior Change (2008), Xiao, J.J, Prawitz, A.D., Prochaska, J.M., O'Neill, B,, Kim, J., & Garman, Special publication of the Personal Finance Employee Education Foundation, pp. 1-8 (http://www.PersonalFinanceFoundation.org). 4 Lansing, K. J. (2005). Economic research and data: Spendthrift nation. Federal Reserve Bank of San Francisco. Retrieved October 1, 2008, from http://www.frbst.org/publications/economics/letter/2005/el2005-30.html 5 Prawitz, A. D., Shatwell, P., Haynes, G., Hanson, K. C., Hanson, E. W., O'Neill, B., & Garman, E. T. (2007). Lifestyle risk factors, health status, and financial distress: Framing interventions using the Transtheoretical Model of Change. Proceedings of the Association for Financial Counseling and Planning Education, 25, 153-161. 6 Prochaska, J. O., Norcross, J. C., & DiClemente, C. C. (1994). Changing for good. NY: Avon Books. 2 1 they do become somewhat engaged, they are not yet ready to put the strategies learned into practice in their lives. The essence of the Transtheoretical Model of Behavior Change (TTM®) is to identify each person's stage of readiness for change, and to implement strategies (called processes) specific to that stage. For example, those in the Precontemplation stage (not planning to change within the next 6 months) are the most difficult to motivate, as the progress needed is from a state of inertia to a level of willingness to admit there is a problem and to begin thinking about changing. The strategies that help people in this Precontemplation stage of change are quite different from strategies used with those getting ready or ready for and dedicated to changing. 7 The following strategies are applicable to both financially distressed employees and those with average financial well-being who are in the pre-action stages. The strategies also apply to both overly indebted employees and those with average levels of debt who are in the action stages. Importantly, even the messages used to motivate employees to attend financial education workshops should be worded differently based on the stage of change of the target audience. What motivates some individuals to attend a seminar often differs from what motivates other employees. PFEEF researchers currently are engaged in research to determine whether advertising messages for financial workshops differ by stage of change, and which messages work better to motivate participation. The Stages of Change and Associated Strategies Precontemplation stage (I can't or I won't). About 40% of people who need to make a behavior change are in the Precontemplation stage. In this stage people may be unaware that a habit is risky, or may know that it's risky, but not admit a personal need to change. Others may be discouraged by previous failures and believe the problem is beyond their control. For those in the Precontemplation stage, an important strategy is consciousness raising, or increasing awareness about both the risks of the problem and the benefits of changing. Another strategy used in this stage is dramatic relief, a form of emotional arousal which can create enough anxiety to motivate people to make changes. Such emotional experiences can be wake-up calls about where the problematic behavior is leading ­ to bankruptcy, divorce, foreclosure, etc. Contemplation stage (I may). Individuals in this stage are more likely to acknowledge that they have a problem and start intending to solve it. Many Contemplators have indefinite plans to take action within six months or so. However, many get stalled because they fear the costs of change. To help people move forward, one strategy is to help convince them that the benefits of 7 A co-author of this paper is Dr. Janice M. Prochaska, President, Pro-Change Behavior Systems (http://www.prochange.com). Pro-Change creates individually tailored behavior change programs based on research and proven behavior change science. With funding from the National Institutes of Health (NIH) and private industry, and based on over 30 years of research, their programs have achieved unprecedented impacts with entire at-risk populations--from those not thinking about changing, to those actively maintaining a new behavior. One of the originators of the Transtheoretical Model of Change is Dr. J. O. Prochaska, who was named as one of the five most influential authors in Psychology by the Institute for Scientific Information and the American Psychological Society, Dr. Prochaska is author of more than 300 papers on behavior change for health promotion and disease prevention. He has served as Principal Investigator on over $60 million in research grants on the prevention of cancer and other chronic diseases and has received numerous honors, including major awards from the American Psychological Association, the Society for Prospective Medicine, and Harvard University. He was the first psychologist to win a Medal of Honor for Clinical Research from the American Cancer Society, The current paper applies the strategies of Transtheoretical Model of Change toward motivating changes in the personal financial behaviors of adults. changing outweigh the costs. Other strategies for Contemplators include self-reevaluation, which involves encouraging them to imagine the kind of people they would be once they have changed. Environmental reevaluation, a third strategy useful in this stage, helps people assess how the problem behavior is affecting others. People in this stage may still sound like this: "I know I need to stop unnecessary purchases, but I just don't know how I would ever do it. Every time I try, I seem to fail. I just don't know." They are not yet ready to take action, so people in the Contemplation stage are considered to be in a stage of "pre-action." 8 Preparation stage (I will). Most people in the Preparation stage are intending to make a behavior change within 30 days. Strategies used in the Preparation stage include encouraging people to make a commitment to change and to take some small steps to build confidence. Another important strategy is empowering people to make an action plan, which includes writing down the plan, making a public commitment to change, setting a date for change, and lining up supporters for encouragement and help in making the change. People in this stage may sound like this: "I am going to cut up my credit cards;" "I am going to see a credit counselor this week;" "I am avoiding shopping online." Action stage (I am). In the action stage, people are taking overt action to change. Once people enter this stage, most need to continue focusing on the problem behavior for at least six months. People in the Action stage benefit from both cognitive and behavioral strategies. Cognitive strategies might include a technique such as positive thinking, while behavioral strategies represent overt purposeful behavior changes. These include establishing rewards to reinforce efforts (reinforcement management), substituting healthy new behaviors for problematic ones (counterconditioning), changing the environment to prompt change efforts and avoiding cues that trigger the problematic behavior (stimulus control), and getting support from others (helping relationships). Maintenance stage (I still am). ­ Change doesn't end with the Action stage, for change is an ongoing process. People usually must work to maintain the gains achieved in the previous stages, and may struggle to prevent relapses. Strategies that are supportive in the Maintenance stage are continuation of the substitution of new behaviors for problematic ones (counterconditioning), maintaining changes in the environment to prompt change efforts (stimulus control), and having a plan in place to cope with setbacks. For all stages: Social liberation is an effective strategy for encouraging positive behavior change at all stages. This strategy helps people realize that the social norms are changing in the direction of supporting the positive behavior change. Realizing that appropriate personal financial management is socially desirable and contributes to the well-being of society helps keep employees on track. A Step-By-Step Approach The Transtheoretical Model of Behavior Change promotes the development of desirable behaviors step-by-step, a method shown to be effective in empowering lasting, positive change. As employees move through the stages of change, they will benefit from this approach, and feel more confident as they change undesirable behaviors and develop more positive financial management strategies. While employees may experience lapses and backslide to a previous stage, it is rare for a person who has begun the process to revert all the way back to the Precontemplation stage. That is, while missteps may occur, employees can continue to make 8 Xiao, J. J., Newman, B. M., Prochaska, J. M., Leon, B., Bassett, R. L., & Johnson, J. L. (2004). Applying the Transtheoretical Model of Change to consumer debt behavior. Financial Counseling and Planning, 15(2), 89-100. progress. Examples follow that illustrate research-based strategies found to work at different stages of change for those who are struggling with financial problems, like budgeting and paying down debt, and challenges, such as saving for retirement. Examples of Behavior Change Strategies by Stage of Change The following examples suggest how strategies can be used to empower financially distressed employees at various stages of behavior change related to personal financial practices. Similar messages to encourage positive change for the achievement of financial goals can be developed based on these examples. Stage of Change Change Strategy Precontemplation Consciousness raising: Finding and learning new facts, ideas, and tips that support the positive behavior change Example Provide employees with articles on the importance of reducing debt, having a savings plan, budgeting, etc. Information about the consequences of continuing the problematic behavior is helpful also. Raise the pros of reducing debt and having a savings plan, e.g. feeling more hopeful about the future, being rid of bill collectors, building a positive credit history, improved sleep, etc. Use dramatic personal stories with harsh negative outcomes to produce emotional responses. For example, a true narrative detailing the experience of a 72-year-old employee still in the workforce (though not wanting to be) because she did not save enough for retirement might motivate some to begin learning about investing for retirement. Administer the 8-item Personal Financial Wellness (PFW) scale to measure current level of financial distress. (Employees can determine own levels of financial distress, which may be quite revealing for some.) Dramatic relief: Experiencing the negative emotions that go along with inappropriate financial practices Stage of Change Change Strategy Contemplation Self-reevaluation: Realizing that the behavior change is an important part of one's identity as a person Example Ask: "How will you view yourself as a person when you have made progress toward your financial goals?" (A person's perception of self is tied to past behaviors. This approach helps the financially distressed employee see that one can change for the better and feel good about the positive changes.) Make the advantages outweigh the Offer: "You might have to admit that you are overspending, but you'd learn to be disadvantages more in control of your spending." Encourage: "You might feel like you don't have the energy to plan, but you'd find more energy if you did." Ask: "Is using effective methods to get rid of debt really so time consuming?" Encourage employees to consider that Environmental reevaluation: Realizing the negative impact of the their families have little financial stability due to their past behaviors, and that inappropriate behavior or the when they have developed good positive impact of the improved behaviors on one's proximal social financial management practices, their families will enjoy more financial welland physical environment being. (Helps employees understand that personal financial choices are affecting loved ones in a negative way.) Preparation Self-liberation: Make a firm commitment to change Remind: "Things will not change for the better until you make the commitment to do things differently." (This approach helps employees realize the ability to change comes from within and promotes proactive movement toward goals.) Examples to offer: "Be mindful of the debt you already have incurred." "Pay attention to the minimum required each month on your credit card." "Plan ways to avoid unnecessary purchasing." Encourage employees to: Choose their methods Set a start date Tell others about their commitment Write down the plan Take small steps to build confidence Make an action plan Stage of Change Change Strategy Action/ Reinforcement management: Increasing the rewards for the positive behavior change. Example Encourage: Create opportunities to reward yourself for making progress toward your financial goal (e.g., having friends over for a potluck dinner). Rewards should not involve unnecessary spending, and certainly not financial "splurging." Suggest: Return unneeded charged purchases to the store. (If the reward is to possess something new, then a return of the purchase likely would serve to decrease the reward.) Helping relationships: Seeking and Encourage employees to enlist family using social support for positive members as their support group for behavior change making changes in financial behaviors. Have them designate a supportive person to help them keep track; the more transparent the behaviors, the less likely they are to slip up. (If family members understand the end goal and are part of the planning process, they are more likely to buy into and support the positive changes.) Counterconditioning: Substituting Check out books from the library rather positive alternative behaviors and than buying from bookstores or online; cognitions for the inappropriate try shopping at resale shops instead of behaviors the mall; have funds diverted from current income to a retirement fund before paycheck is issued; plan for future large purchases by diverting current income each pay period to a savings account set up for this purchase. Stimulus control: Refrain from tuning in to the shopping Removing cues to engage in the channel; leave credit cards at home inappropriate behavior. when you go shopping. Decreasing the rewards of inappropriate behaviors Adding reminders to engage in positive behaviors. Keep a chart of debts being reduced and goals being met; make a shopping list before you leave for the store; take advantage of employee-sponsored financial education courses. Stage of Change Change Strategy Maintenance Cope with setbacks Example Encourage: Move quickly back to better behavior. Learn from your setbacks. Maintain the image of the person you want to be. Tell yourself you have what it takes to get back on track. All stages Make sure employees have a plan for what to do to handle tempting situations effectively, e.g. holidays, hearing about a big sale, stressful times. Social liberation: Realizing that the Remind employees that reducing their indebtedness increases the well-being social norms are changing in the direction of supporting the healthy of not only their families but also society as a whole. (Realizing that behavior change being able to finance one's own retirement reduces the burden to society is motivational for some.) Plan ahead for challenging situations We encourage you to use the information provided on stages of change to assist employees in changing problematic and challenging financial behaviors. Such changes will help them move toward increasing financial success. If you have effective messages to encourage employees to make positive changes in their financial behaviors, please share with us. We will post your ideas on the PFEEF website with an acknowledgment of your contribution. PFEEF encourages the use of its valid and reliable 8-question Personal Financial Wellness (PFW) scale to benchmark the financial health of employees, particularly before and after commencement or expansion of a workplace financial program. In addition, PFEEF conducts return-on-investment (ROI) analyses to project and prove the value of quality workplace financial programs. PFEEF Can Help Improve Employee Financial Communications Researchers at PFEEF have published a number of articles on the outcomes of improving financial management behaviors; most are accessible through our website (www.Personal FinanceFoundation.org). PFEEF also has created the valid and reliable Personal Financial Wellness (PFW) scale to measure financial distress/financial well-being of employees. Use of the scale is free with permission--see the PFEEF website for details. Fee-based consulting on applying the Stages of Change Model in the context of your company environment to improve employees' financial well-being also is available. For details, please contact PFEEF, a non-profit organization.");sQ1[56]=new Array("http://www.personalfinancefoundation.org/questions/Letter-as-Flyer[1].pdf","Your organization wants to succeed in changing employees' personal financial behaviors","","Personal Finance Employee Education Foundation PFEEF's Mission Mission: To promote and facilitate financial education in the workplace. The PFW Scale™, Return on Investment Calculator, the Financial Education Providers List, as well as other resources will enable employers to understand that employees who have their finances in order will be more productive. Companies providing financial education show results that include improvement in workplace productivity, employee morale, and company loyalty while reducing absenteeism, turnover, workplace distractions, and operational risk across the company. Financial education programs have the effect of contributing hundreds of thousands of dollars each year to the company's bottom line. The ROI is generally 3:1. The Personal Finance Employee Education Foundation (PFEEF) advocates the value of workplace financial programs that increase employee financial health and employer profits. PFEEF works with and assists providers of workplace financial programs and projects their value to the employer's bottom line. PFEEF, a non-profit organization, helps management use company data to prove that providing financial education for employees improves the bottom-line. PFEEF makes available to employers the tools, measurement, metrics and expertise to detail the projected return-on-investment (ROI) for a quality workplace financial education program. Employers may access on the website (www.pfeef.org), the Personal Financial Wellness Scale™, the ROI Calculator, quality providers, research and media articles. Many employees realize they have some financial behaviors that need changing. To succeed they must modify those behaviors, and with a plan to change. Employers can help by giving employees access to quality financial programs. The result is that employees make informed decisions among their benefit choices, take actions to enhance their current financial lives, and invest for a financially successful retirement. PFEEF believes that a significant percentage of employees will get these results when a workplace financial program is delivered by a quality financial provider. And most of these employees will show improvements in job outcomes. This is bottom-line money for employers. Human Resource Professionals can access our power point, video, and research, as well as other resources that make the case for the value of finance education as it improves employer profits. We encourage you to join with PFEEF in making high quality workplace financial education a basic employee benefit for all employers. Personal Finance Employee Education Foundation, Inc. 1100 13th Street, NW, Washington, DC 20005 Telephone: 859-433-0557; E-mail: info@pfeef.org www.PersonalFinanceFoundation.org");sQ1[57]=new Array("http://www.personalfinancefoundation.org/speeches/speeches-nsb.html","National Speakers Bureau","","Home About Us ROI Model Research Press Contact Us Speeches National Speakers Bureau Please consider inviting a member of the PFEEF Board of Directors, the Advisory Council, or Director of Research to make a speech. Click on " About Us" for contact information. Key Questions Speeches Quality Providers Resources Tools for Your Use Exemplary Employers Donor Information PFW Scale™ Information Copyright 2006, 2007, 2008, 2009, 2010 "PFEEF is a 501(c)3 nonprofit charitable foundation" Home | About Us | ROI Model | Research | Press | Contact Us | Privacy | Site Map | Terms of Use");sQ1[58]=new Array("http://www.personalfinancefoundation.org/speeches/AFPCE-FINAL-PP-111809.ppt","Tom Garman’s Thoughts on Employee Education","","“Using a Return-on-Investment Model to Promote Financial Education in the Workplace” Presented by E. Thomas Garman, Aimee Prawitz, Jinhee Kim, Barbara O’Neill, Jamie Richter Presented to Association for Financial Counseling and Planning Education November 18, 2009 ©Personal Finance Employee Education Foundation, 2009 Agenda for Today Introduction Judith N. Cohart, PFEEF President, January 1, 2010 Using the PFW questions PFEEF Resources and Website PFEEF’s Return-on-Investment (ROI) efforts ROI Logic and online calculator Use PFFEF Expertise and Metrics to Project ROI for Employers Pencil/Paper and Online Data Collection Business Case for Workplace Financial Programs Tips on Working with Employers Judith N. Cohart, President PFEEF (January 1, 2010) AFCPE, President (1986, 1991) AARP Foundation National Coalition for Consumer Education USA TODAY U.S. Congress Legislative Assistant District of Columbia Bar Using the Personal Financial Wellness (PFW Questions The PFW assesses financial health The 8-question self-report PFW questions subjectively measure a multi-dimensional construct of financial distress/financial well-being by assessing some combination of the variables of financial well-being, financial distress, financial strain, and financial satisfaction The PFW measures the single construct of financial distress/financial well-being PFW Validity and Reliability Validity and reliability are enhanced by administration to multiple nationally representative samples of adults as well as multiple samples of financially distressed consumers; review of research; surveys of experts; attention to clarity, readability, appearance, and question sequencing A reliability statistic is one indicator of the effectiveness of an instrument, and the Cronbach Alpha reliability statistic for the PFW is a very high 0.956 PFW© (Q 1-4) (No Scaling or Anchor Terms Shown on This Slide) 1. What do you feel is the level of your financial stress today? 2. How satisfied are you with your present financial situation? 3. How do you feel about your current financial condition? 4. How often do you worry about being able to meet normal monthly living expenses? PFW© (Q 5-8) (No Scaling or Anchor Terms Shown on This Slide) 5. How confident are you that you could find the money to pay for a financial emergency that costs about $1,000? 6. How often does this happen to you? You want to go out to eat, go to a movie or do something else and don’t go because you can’t afford to? 7. How frequently do you find yourself just getting by financially and living paycheck to paycheck? 8. How stressed do you feel about your personal finances in general? National Norms on PFW© (PFW Mean=5.7; SD=2.4) 1 6 . 0 14.5 14.2 13.8 1 4 . 0 12.2 11.4 1 2 . 0 9.2 1 0 . 0 8.2 Percentage 8 . 0 6.9 5.4 6 . 0 4.2 4 . 0 2 . 0 0 . 0 1 2 3 4 5 6 7 8 9 1 0 (7-10: 42%) Low distress (1-4: 30%) High distress (5-6: 28%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by Personal Finance Employee Education Foundation and InCharge Education Foundation, 2004-2009 All rights reserved. How to Use the PFW Benchmark employee financial well-being (in 3 to 4 minutes) Prove a financial program works Project the employer’s return on investment (ROI) for providing employees easy access to quality financial programs Prove the employer’s return on investment (ROI) PFW 150+ Users Financial Organizations (77) Universities (39) Companies (26) Military (5) Government Agencies (1) Medical (1) Using the PFFW Use of the IFDFW is free with written permission. Take 3 minutes to fill out and submit “Permission Form” on the website of the Personal Finance Employee Education Foundation www.PersonalFinanceFoundation.org PFEEF’s Resources and Website Provides employers no-cost-to-use tools and expertise to detail the bottom-line benefits of quality financial programs Promotes “PFEEF’s Best Providers” whose quality workplace financial programs genuinely improve employees’ personal financial behaviors and increase employer profits Encourages other providers to bring their programs up to proper standards PFEEF is a 501(c)3 nonprofit charitable foundation PFEEF Resources and Website PFW Questions Research Two videos PowerPoint presentation Employer’s ROI PP presentation Marketing messages to employers Ezine newsletter Employer Costs: PFEEF Research Proves ALL These Factors are Correlated in the Ways Expected Personal Finances: Financial well-being Financial satisfaction Financial distress Financial stressor events Financial behaviors Credit card debt Credit card delinquencies Job Outcomes: Work satisfaction Pay satisfaction Absenteeism Presenteeism (cutting down on normal activities) Personal financial matters interfering with work Work time used to handle personal finances Health Employee Financial Illiteracy is an Employer Problem Employers Often Recognize These Issues… But Do Nothing. “ You can lead a horse to water, but you can’t make it drink” Quality Financial Programs Result in Improved Employer Profits “Employers do not realize they can improve profits –and prove it– by helping employees improve personal financial behaviors” Quality Financial Programs Result in Improved Employee Personal Finances and Employer’s Bottom Line Quality Workplace Financial Programs Rescue Employees and Employers by 1. Decreasing employee personal financial distress 2. Increasing employee personal financial wellness PFEEF’s Approach to Projecting Return on Investment Benchmark employee financial health (employees complete PFW) Determine key job outcomes of financial program (PFEEF and employer together) Assign values to each key job outcome Calculate projected benefits of financial program Identify program cost and calculate ROI PFEEF Projects 1-Year Changes in 10 Variables Less work-time wasted on personal finances Less absenteeism Reduced turnover Improvements in job performance Lower health care costs Health care premium savings Employer’s FICA savings - health care spending plan Employer’s FICA savings - dependent care spending plan Fewer workers’ compensation claims Fewer garnishments PFEEF Could Project Additional Variables as Part of Employer’s ROI Additional factors that could be included in the PFEEF project ROI calculation that may contribute to increasing benefits over the costs are: fewer payroll advances fewer loans from 401(k) plans fewer accidents less workplace violence less substance abuse fewer thefts increase in job engagement improved morale increased participation in 401(k) plan reduced human resource department costs reduced 401(k) plan fiduciary liability PFEEF Assumptions Behind Employer Costs and Projected Improvements Employer cost assumptions are based on industry data and employer’s HR professionals Projected improvements in personal financial behaviors are based on research reasonable and conservative for one year following participation in a quality financial program PFEEF Projected Benefit of Improved Job Outcomes for ABC Company (5,000 employees) Program impacts 30% of employees (1,500) with varying effectiveness and improvement in job outcomes: PFEEF Projected ROI Ratio of 3.04:1 for ABC Company (5,000 employees) Benefit of improved job outcomes = $2,928,735 Cost of financial education program = $725,000 ($145/employee) Benefits – Cost Cost x 100 = ROI $2,928,735 - $725,000 $725,000 x 100 = 304% Translation: There will be $3.04 return on investment (ROI) in net benefits for every dollar invested in the financial program How to Use PFEEF Expertise and Metrics to Project ROI Collect data using paper and pencil, and send to PFEEF Collected data using PFEEF’s online system Or use both Five Ways to Use PFEEF Metrics and Expertise Utilize the online PFEEF ROI Calculator so employers can get an ROI estimate based on good generic assumptions and calculations and obtain a report of those findings Help an employer collect data and analyze it yourself Ask PFEEF to help benchmark the financial wellness of an employer's employees, and data collection takes about 7 minutes (includes concise report  Ask PFEEF to work with an employer’s PFW scores and cost data to prepare a comprehensive employer-specific return-on-investment report  One year later PFEEF can prove the genuine ROI using employer data The Business Case for Quality Workplace Financial Programs Legal – “insurance” against litigation (ERISA and SOX liability and CFO nightmare) Bottom-line benefits – better productivity and retention Human resources – attract, retain, reward, motivate the right employees Benefits – facilitates benefit plan changes and behavioral changes Culture – links the program to the values the company wants to instill in employees Social/Moral – it is right thing to do as stewards of employee well-being *Delivering Financial Literacy Instruction to Adults, Garman & Gappinger, 2008, taken from Ernst & Young’s Bill Arnone’s comments on pages 31-35 (Heartland Institute of Financial Education [303-597-0197]) Tips For Working With Employer’s Financial Education Programs Barbara O’Neill, Ph.D., CFP® Extension Specialist in Financial Resource Management Rutgers Cooperative Extension Working With Employers Framing improved practices of program participants in economic terms will help improve accountability to employers Can have high dollar impacts even with conservative assumptions for program participation, number of evaluation responses, and number of respondents who report changed behavior The key is to have common impact indicators and to aggregate data. Working With Employers: Calculating Economic Impacts of Programs What to Do in Employee Presentations Find out demographics of the audience Request employee benefit documents Summary Plan Description for pension Employee benefits manual Provide written handouts Come early and meet the audience Always use examples with modest incomes Comment favorably of quality employee benefit plans Tell success stories and describe role models What NOT to Do in Employee Presentations Use acronyms without explaining them Use statistics instead of dollar amounts Use text-heavy PowerPoint slides Straight lecture instead of facilitated discussion Miss opportunities to prompt immediate action (e.g., signing up for 401(K) plan) Miss opportunities to conduct follow-up evaluations, including ROI analysis PFEEF Conclusion about Employee Financial Literacy and Employer Profits It is in the employer’s best interest—more profits—to provide employees easy access to quality financial programs “It also is the right thing to do as stewards of employee well-being!” Thanks! Information Dr. E. Thomas Garman, President, Personal Finance Employee Education Foundation, Professor Emeritus and Fellow, Virginia Tech University 9402 SE 174th Loop, Summerfield, FL 34491 USA Tele/Fax: 352-347-1345; E-mail: info@pfeef or ethomasgarman@yahoo.com Web: www.PersonalFinanceFoundation.org For free permission to use the PFW Scale™, fill out online form To examine the PFW Scale™ and research articles about its use, see http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=290&top_id=21 http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=303&top_id=21 Book available: Delivering Financial Literacy Instruction to Adults (2008), Garman & Gappinger, Heartland Institute of Financial Education (303-597-0197)");sQ1[59]=new Array("http://www.personalfinancefoundation.org/speeches/SHRM.ppt","Tom Garman’s Thoughts on Employee Education","","Increase the Bottom Line by Helping Distressed Employees During Challenging Financial Times Presented by E. Thomas Garman to SHRM • Webcast • August 6, 2008 Employee Personal Finances and the Bottom-line Financially Illiterate adults do not manage their personal finances very well… And they do not save and invest enough for a financially successful retirement. THIS contributes to lower productivity as well as higher health care costs. “ You can lead a horse to water, but you can’t make it drink.” Employers Often Recognize These Issues… But Do Nothing. Let’s Talk About… Employee Personal Finances Employer Bottom Line Employee Personal Finances USA System of Retirement Income Security The metaphor is a 3-legged stool: Social Security Employer provided pensions Personal savings Defined-Benefit Retirement Pensions (DB Plan =Monthly checks for life) Most USA workers earn Social Security Administration credits during their working years and retirees are eligible for a SSA pension • Average today: $963 per month Aged adults with limited income and resources may be eligible for SSA-administered Supplemental Security Income pension • Average today: $466 per month Some working employees qualify for and may receive an employer-sponsored defined-benefit pension. In 1981, 112,000 plans covered 37% of workers; now 31,000 plans cover <20% • Average corporate pension today $641 per month) Defined-Contribution Retirement Savings Plans (DC Plan = Lump Sum at Retirement to Manage) Only 51 million of today’s 108 million full-time workers save for retirement in any DC plan Only 14% of eligible workers contribute to IRA accounts Of the 58 million who have access to employer-sponsored voluntary retirement plans: • Only 2 in 3 eligible employees join DC plans • Many are not saving enough for a financially successful retirement Average balance: $58,000 Median balance: $19,000 A “median” balance means half have saved less! Observation Financing retirement in the USA today is the sole responsibility of the employee Employee Personal Finances Retirement Saving Realities Participation in and deferral rates to retirement savings plans are inadequate Most are not saving enough for retirement Workplace education and advice programs have been underutilized Millions of employees say they cannot afford to save for retirement, and 1 in 4 say credit card debt is a reason Employees do not know how to help themselves Employers do not understand the value of providing their employees easy access to the best mix of quality financial programs BIG POINT “Financial Literacy” is knowledge about • Spending Plans • Credit Management • Savings AND The lack of financial literacy is the major reason why employees do not save for retirement Financially Unhealthy Employees 30 million American workers–1 in 4 – report they are seriously financially distressed and dissatisfied with their personal finances National Norms for Financial Wellness on PFW Scale™© (Mean=5.7; SD=2.4) 1 6 . 0 14.5 14.2 13.8 1 4 . 0 12.2 11.4 1 2 . 0 9.2 1 0 . 0 8.2 Percentage 8 . 0 6.9 5.4 6 . 0 4.2 4 . 0 2 . 0 0 . 0 1 2 3 4 5 6 7 8 9 1 0 (7-10: 42%) Low distress (1-4: 30%) High distress (5-6: 28%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale© for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2008. All rights reserved. 30% Are Failing Financially! (Scores of 1-4) Employee Personal Finances Recent Gallup survey(May 08) Over 80% are worried about their personal finances and think the financial times will get worse More news (April 08) 401(k)s are being tapped to save homes $4 gas is a reality; $5 may be next Employee Personal Finances (June 2008 data and reputable predictions) Credit Card Delinquencies — Highest in 16 years (American Bankers Association) Credit Card Losses — $100 billion in 2008 (10% of all cards) (Goldman Sachs) Housing Foreclosures – 11% in crisis! 2.4 million borrowers foreclosed, in foreclosure or will be in 2008 6.35% now 30-days behind in mortgage payments Home prices declined 25% since 2006 30% of the nation’s 51 million homeowners have negative equity (US News & World Report, 4-21-8) Employee Personal Finances “60% Live Paycheck-to-Paycheck” and Do Not Save Enough for Retirement Credit card payments ($2-6K) $100-$200 month Vehicle payments ($15K) $400-$500 month College loan payments ($30K) $400-$600 month Child-care ($5-$21K) $400-$1200 month Mortgage loan payments $ Property taxes $ Homeowner’s insurance $ AND . . . ½ of all adults DO NOT budget! Don’t give employees a raise! Offer help with money management challenges. BIG POINT “Financially unwell employees do not make the best decisions for themselves… or their employers” Employee Personal Finances Research shows: 30-80% of ALL workers waste time at work on money issues How much time? 12 – 20 hours per month “Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line” Employer Bottom Line Research says, “Every time someone on your work team brings his/her money worries to the job, workplace productivity drops” Employers ignore the elephant Research Proves ALL These Factors are Correlated in the Ways Expected Personal Finances: Financial well-being Financial satisfaction Financial distress Financial stressor events Financial behaviors Credit card debt Credit card delinquencies Job Outcomes: Work satisfaction Pay satisfaction Absenteeism Presenteeism (cutting down on normal activities) Personal financial matters interfering with work Work time used to handle personal finances Health Research Shows that Health and Personal Finances are Correlated Employees with financial distress report poor health.f Financially distressed employees have worse health than other workers.g 40 to 50% of financially distressed workers report that financial problems caused their health woes.h Positive changes in financial behaviors are related to improved health.i Estimated Annual Costs of Ignoring Financial Illiteracy© © Personal Finance Employee Education Foundation, 2008. Lost productivity $450a Health care costs (poor health) 300 Subtotal = $750 Health care reimbursement (FICA) 92c Dependent care reimburse (FICA) 382d Traditional health plan choice (CDHC) 800e TOTAL $2,000+ “Employer cost for no action is $750 to $2,000+ per employee!” Bottom Line Quality Workplace Financial Programs Rescue Employees and Employers BIG POINT “Employers do not realize they can improve profits –and prove it– by helping employees improve personal financial behaviors” What does not reduce employee financial distress and increase financial wellness? Salary increases? No Bonuses? No Most retirement education workshops? No Marriage counseling? No Employee Assistance Programs? No What DOES reduce financial distress and increase financial well-being? Employers Who Provide Employees Easy Access To Quality: Basic financial education Credit counseling Benefits information/education Credit union Retirement education Financial advice Financial coaching that changes behaviors Bring together the basic financial resources to truly help employees. Financially Literate Employees are Engaged with Money Issues Comparison shop Achieve savings goals Enjoy average to above average financial well-being How Can Employers Save $750 - $2,000+? Demand more from your current financial program providers Insist one provides leadership to deliver a coordinated quality program that emphasizes the basics of personal finance: • Spending Plan • Credit Management • Saving It’s not a matter of money spent on financial education — it’s a matter of effectiveness! Results from Quality Financial Programs Lower financial distress Increased financial well-being Better health Adequate retirement preparation Improved family relationships Gains in job performance Personal Finance Employee Education Foundation “PFEEF Advocates Best Practices” Provide employers no-cost-to-use tools and expertise to detail the bottom-line benefits of quality financial programs Identify companies whose workplace programs genuinely improve employees’ personal financial behaviors and increase employer profits The ROI for Quality Workplace Financial Programs Return on Investment (ROI): The Personal Finance Employee Education Foundation expects employers typically will receive a ROI of 3:1 annually for quality financial programs. Example: If an employer/employee invests $250 for financial programs, the ROI would be $750! Developing the Employer’s ROI “How many dollars can employer gain by demanding more from financial providers?” Assign cost values to key job outcomes Estimate projected impacts of financial program on job outcomes Add projected savings Add projected financial program costs Calculate employer’s projected ROI PFEEF can help with this effort. Use PFW to Benchmark Employee Financial Health Survey employees using the Personal Financial Wellness (PFW) scale PFW is an 8-item online questionnaire that in 3-4 minutes measures financial heath PFW is a peer-reviewed, published, valid and reliable measure (over 20 years in development) with national norms Use of PFW is free with permission PFEEF can help with this effort at no cost. PFEEF Researches Employers Return on Investment (ROI) PFEEF can: Create for employers an ROI projection for an employer advancing a quality financial program with a single online collection of Personal Financial Wellness (PFW) scores Create an employer-specific projected ROI using company supplied cost figures Prove the genuine ROI one year later using employer provided data PFEEF can help employers with this effort. KEY MESSAGES 30% of employees report poor personal finances (scores of 1-4 that are less than middle [5-6]) (What’s the percentage at your workplace?) Ask employees to complete online "Financial Health Checkup” (8 questions in 4 minutes) Employer insists that providers improve employees’ financial decision making PFEEF projects ROI for quality financial program with one data collection (no cost to employers) Conclusion About Employee Financial Literacy and Employer Profits It is in the employer’s best interest—more profits—to provide employees easy access to quality financial programs It also is the right thing to do as stewards of employee well-being! Thanks! Information Dr. E. Thomas Garman President, Personal Finance Employee Education Foundation Professor Emeritus and Fellow, Virginia Tech University 9402 SE 174th Loop, Summerfield, FL 34491 USA Tele/Fax: 352-347-1345 E-mail: info@pfeef or ethomasgarman@yahoo.com Web: www.PersonalFinanceFoundation.org To examine the PFW Scale™ and research articles about its use, see http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=290&top_id=21 http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=303&top_id=21 New Book: Delivering Financial Literacy Instruction to Adults, Garman & Gappinger, Heartland Institute of Financial Education (303-597-0197) For free permission to use the PFW Scale™, fill out online form Footnotes a Based on reduced absenteeism and less work time dealing with personal financial concerns. See research and press releases at www.PersonalFinanceFoundation.org b Conservative estimate; research underway c $1,200 contribution to health reimbursement plan ($1,200 X 0.0765) d $5,000 contribution to dependent care reimbursement plan ($5,000 X 0.0765) e Employee stays in high-cost health plan instead of choosing less expensive CDHC policy (consumer driven health care) f Bagwell & Kim, 2008; Drentea, 2000; Drentea & Lavrakas, 2000; Garman et al, 2004; Genco et al., 1999; Garman et al., 2007;l Jacobson et al., 1996; Lyons & Yilmazer, 2005; Kim, Sorhaindo, & Garman, 2004; Prawitz et al., 2007; Shatwell et al, 2007. g Kim, Sorhaindo, & Garman, 2003; Prawitz et al, 2007; O’Neill et al, 2005 (2 articles); Sorhaindo & Garman, 2002. h Garman et al, 1999; Kim, Garman, & Sorhaindo, 2003 (AFCPE and ACCI); Kim, Sorhaindo, & Garman, 2004; O’Neill et al, 2006; Weisman, 2002. i Kim, Garman, & Sorhaindo, 2003 (AFCPE and ACCI); O’Neill et al, 2006; O’Neill et al, 2005 (2 articles). Appendix PFEEF Approach to ROI Calculations Details are provided in the 2008 book Delivering Financial Literacy Instruction to Adults, Heartland Institute of Financial Education by E. Thomas Garman and Alan J. Gappinger. See table of contents at http://www.personalfinancefoundation.org/resources/TOC%20Delivering%20Financial%20Literacy%20Instruction%20to%20Adults.doc ISBN#978-9-9792115-0-8 $60 plus shipping. To order call 303-597-0197 (Heartland) or order through Heartland’s website http://heartlandfinancialeducation.org. Summary of 1-Year Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in a range of improved financial behaviors and job outcomes Total value of projected improved job outcomes = $4,225,788 Projected cost of financial program = $1,500,000 Projected ROI 2.8/1 ($4,225,788/$1,500,000) *These projected ROI calculations are based on research and experience. The numbers are reasonable and are based on conservative assumptions. Projected ROI calculations are not guarantees. Projected 1-Year Changes in Work Outcomes for ABC Company Fewer garnishments Less absenteeism Less short-term disability Reduced turnover Lower health care costs Fewer workers’ compensation claims Employer FICA savings for more employees in health care spending plan Employer FICA savings for more employees in dependent care spending plan Improvements in job performance Less work-time spent on personal finances Factors that could be in the PFEEF ROI calculation that would increase the benefits over the costs but are not included are: fewer accidents, less workplace violence, less substance abuse, fewer thefts, increased participation in 401(k) plan, fewer payroll advances, fewer loans from 401(k) plans, reduced health care premiums because employees select alternative high deductible plan, increase in job engagement, improved morale, reduced human resource department costs, and reduced 401(k) plan fiduciary liability. Projected 2.8 ROI for ABC Company* (Details) Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes: Garnishments $378,000 Absenteeism 168,000 Short-term disability 31,500 Turnover 840,000 Health care costs 252,000 Workers’ compensation claims 160,000 Health care spending plan 385,560 (cash money) Dependent care spending plan 514,080 (cash money) Job performance 1,370,628 Work-time spent on personal finances 126,000 Total value of projected improved job outcomes $4,225,788 Cost of financial program = $1,500,000 ROI 2.8/1 ($4,225,788/$1,500,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate cost data. Decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are additional ROI values, and they are not part of this ROI calculation, although they could be included.");sQ1[60]=new Array("http://www.personalfinancefoundation.org/speeches/Health Benefits Conf Expo 011707 FINAL.ppt","Tom Garman’s Thoughts on Employee Education","","Employee Personal Finances and Health Impact the Employer’s Bottom Line Presented to Health Benefits Conference & Expo Presented by E. Thomas Garman Personal Finance Employee Education Foundation January 17, 2008 Employers Already Know That Smoking is bad for employee health and the company’s bottom line Do Employers Also Know? The same is true of employees who have money worries Employee Personal Finances and the Bottom-line Financially illiterate adults do not manage their personal finances very well… And they do not save and invest enough for a financially successful retirement. THIS contributes to lower productivity as well as higher health care costs Employers Often Recognize These Issues But Do Nothing “You can lead a horse to water, but you can’t make it drink.” Let’s Talk About Employee’s Finances Employer’s Bottom-line USA System of Retirement Income Security The metaphor is a 3-legged stool: Social Security Employer provided pensions Personal savings USA Retirement Finances Defined-Benefit Retirement Pensions (DB Plan = Monthly checks for life) Most USA workers earn Social Security Administration credits during their working years, and retirees are eligible for a SSA defined-benefit pension Average today: $963 per month Aged adults who never worked and those with limited income and resources are eligible for SSA-administered Supplemental Security Income defined-benefit pension Average today: $466 per month Some working employees qualify for and may receive an employer-sponsored defined-benefit pension. Only 17% of today’s retirees get corporate defined-contribution pension Average today $641 per month) USA Retirement Finances Defined-Contribution Retirement Savings Plans (DC Plan = Lump sum at retirement to manage) Employer-sponsored voluntary retirement plans for individually accumulated savings, such as 401(k) and profit-sharing: Only 2 in 3 eligible employees join DB plans Of those who do participate, 7 in 10 are not saving enough for a financially successful retirement (Median balance=$58,000; Fidelity says $32,000) Observation Financing retirement in the USA today is the sole responsibility of the employee Realities of Saving for Retirement (All Are Negatives) Participation and deferral rates in USA retirement savings plans are inadequate Most are not saving enough for retirement Workplace education and advice programs have been less than successful Millions of employees say they cannot afford to save for retirement, and 1 in 4 say credit card debt is a reason Employees do not know how to help themselves Employers do not understand the value of providing their employees easy access to the best mix of quality financial programs “The lack of financial literacy–spending plans, credit management, and savings—is the major reason why employees do not save for retirement” The Financially Unhealthy 30 million American workers— 1 in 4—report they are seriously financially distressed and dissatisfied with their personal finances National Norms for Financial Well-Being on PFW Scale™© (Mean=5.7; SD=2.4) (1-4: 30%) High distress (7-10: 42%) Low distress (5-6: 28%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale© for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2008. All rights reserved. 30% Are Failing Financially! (Scores of 1-4) 60% of Employees “Live Paycheck-to-Paycheck” And Do Not Save Enough for Retirement Credit card payments ($8K) $200-$300 month Vehicle payments ($15K) $400-$500 month College loan payments ($30K) $400-$600 month Child-care ($5-$12K) $400-$1200 month Mortgage loan payments $ Property taxes $ Homeowner’s insurance $ ½ do NOT budget 30-80% waste time at work on money issues Don’t give employees a raise! Offer help with money management problems. “Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line” Big Point “Financially unwell employees do not make the best decisions for themselves… or their employers” Not Engaged Passive Confused Anxious What Does Poor Financial Literacy Cost? Research says, “Every time someone on your work team brings his/her money worries to the job, workplace productivity drops” Pay no attention to the elephant! Can you recognize a financially stressed employee? No! Research Proves ALL These Factors are Correlated in the Ways Expected Personal Finances: Financial well-being Financial satisfaction Financial distress Financial stressor events Financial behaviors Credit card debt Credit card delinquencies Job Outcomes: Work satisfaction Pay satisfaction Absenteeism Presenteeism (cutting down on normal activities) Personal financial matters interfering with work Work time used to handle personal finances Health Which Purposefully Decreases Employee Financial Distress and Increases Financial Well-being? Salary increases? No Bonuses? No Most retirement education workshops? No Employee Assistance Programs? No Marriage counseling? No Employee Assistance Programs? No What Reduces Financial Distress and Increases Financial Well-Being? Employers Who Provide Employees Easy Access To Quality: Basic financial education Credit counseling Benefits information/education Credit union Retirement education Financial advice Bring together the basic financial resources to truly help employees. Estimated Annual Costs of Ignoring Financial Illiteracy © Lost productivity $450a Health care costs (poor health) 300b Subtotal = $750 Health care reimbursement (FICA) 92c Dependent care reimburse (FICA) 382d Traditional health plan choice 800e TOTAL $2,000+ ($7,982 - $1,690 = $6,292 - $800) “Employer cost for no action is $750 to $2,000+ per employee!” © Personal Finance Employee Education Foundation, 2008. Research Shows that Health and Personal Finances are Correlated Those with more financial distress report poor health.f Financially distressed employees have worst health than others.g Financially distressed workers (40–50%) report their financial problems cause their health woes.h Positive changes in financial behaviors are related to improved health.i How Can Employers Save $750 - $2,000+? Demand more from your current 401(k) financial education providers Insist they provide a coordinated quality program that emphasizes the basics of personal finance: Spending Plan Credit Management Saving It’s not a matter of money spent on financial education— it’s a matter of effectiveness! Financially Literate Employees Are Engaged With Money Issues Comparison shop Achieve short, medium and long term savings goals Match product selections with savings goals Enjoy average to above average financial well-being Aware Active Confident Motivated Results for Employees From Quality Financial Program Lower financial distress Increased financial well-being Better health Adequate retirement preparation Improved family relationships Gains in job performance Both Gain…When Employers Provide Employees With Quality Financial Programs Employee Employer The Big Point “Employers do not realize they can improve profits –and prove it– by providing employees easy access to quality financial education programs that improve personal financial behaviors” Personal Finance Employee Education Foundation “PFEEF Advocates Best Practices” Provide employers no-cost-to-use tools and expertise to detail the bottom-line benefits of quality financial programs Identify companies whose workplace programs genuinely improve employees’ personal financial behaviors and increase employer profits Use PFW to Benchmark Employee Personal Financial Well-Being Survey employees using the Personal Financial Well-Being (PFW) scale. PFW is 8-item questionnaire that measures financial distress and financial well-being. PFW is a peer-reviewed, published valid and reliable measure (over 20 years in development). Use of PFW is free with permission. PFEEF can help with this effort at no cost. Compare Financial Well-Being With Last Year’s Job Outcomes Survey Personal Financial Well-Being (PFW) of employees, and array scores into 5 groups (20% in each). Compare the mean scores of highest 20% group with lowest 20% on last year’s job outcomes. The differences? Human Resources can decide to do nothing. Or, do something! PFEEF can help with this effort at no cost. PFEEF Projects Employer’s ROI “Estimate What the Employer Can Gain By Demanding More From Financial Providers?” Assign cost values to each job outcome Estimate projected impacts of financial program on job outcomes Add up projected savings Add up projected financial program costs Calculate projected ROI PFEEF can help with this effort at no cost. Prove Financial Program Works or Not (One Year Later) Number of employees with improved PFW scores Aware Active Lower financial distress Increased financial well-being Confident Motivated PFEEF can help with this effort at no cost. Prove ROI to Employers (One Year Later) Number of employees with improved job outcomes Calculate employer’s return on investment (ROI) Review changes in job outcomes Add up the savings Add up financial program costs Calculate ROI Key Messages 30% of USA employees are dissatisfied with their personal financial situations (scores of 1-4 that are less than middle [5-6]) (What’s the percentage at your workplace?) Employees complete “Annual Financial Health Checkup” online (8 questions in 4 minutes) PFEEF projects ROI for quality financial program (no cost to employers) Employer hires the best providers to improve employees’ financial decision making Provider/PFEEF may conduct research one year later to prove program works Conclusion About Employee Financial Literacy and Employer Profits It is in the employer’s best interest—more profits—to provide employees easy access to quality financial programs Your To Do List Hire the best preventive health strategist Hire the best providers of basic financial education Count the additional profits Demand performance guarantees from service providers! Thanks! Information/Footnotes Dr. E. Thomas Garman President, Personal Finance Employee Education Foundation Professor Emeritus and Fellow, Virginia Tech University 9402 SE 174th Loop, Summerfield, FL 34491 USA Tele/Fax: 352-347-1345 E-mail: info@pfeef or ethomasgarman@yahoo.com Web: www.PersonalFinanceFoundation.org To examine the PFW Scale™ and research articles about its use, see http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=290&top_id=21 http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=303&top_id=21 New Book: Delivering Financial Literacy Instruction to Adults, Garman & Gappinger, Heartland Institute for Financial Education (303-597-0197) For permission to use the PFW Scale™, fill out online form Footnotes: a Based on reduced absenteeism and less work time dealing with personal financial concerns. See research and press releases at www.PersonalFinanceFoundation.org b Conservative estimate; research underway c $1,200 contribution to health reimbursement plan ($1,200 X 0.0765) d $5,000 contribution to dependent care reimbursement plan ($5,000 X 0.0765) e Employee stays in high-cost health plan instead of choosing less expensive CDHC policy (consumer driven health care) Information/Footnotes Health footnotes f Bagwell & Kim, 2008; Drentea, 2000; Drentea & Lavrakas, 2000; Garman et al, 2004; Genco et al., 1999; Garman et al., 2007;l Jacobson et al., 1996; Lyons & Yilmazer, 2005; Kim, Sorhaindo, & Garman, 2004; Prawitz et al., 2007; Shatwell et al, 2007. g Kim, Sorhaindo, & Garman, 2003; Prawitz et al, 2007; O’Neill et al, 2005 (2 articles); Sorhaindo & Garman, 2002. h Garman et al, 1999; Kim, Garman, & Sorhaindo, 2003 (AFCPE and ACCI); Kim, Sorhaindo, & Garman, 2004; O’Neill et al, 2006; Weisman, 2002. i Kim, Garman, & Sorhaindo, 2003 (AFCPE and ACCI); O’Neill et al, 2006; O’Neill et al, 2005 (2 articles). ABC Company Projected 1-Year Work Outcomes 1. Projected 1-year changes in work outcomes: 12% will improve job performance rating 16% fewer garnishments 16% will have reduced absenteeism 5% less turnover compared to average 10% will spend less work-time spent on personal finances 8% less short-term disability 9% lower health care costs 21% will contribute to 125-plans 5% fewer accidents/workplace violence 5% fewer thefts 10% fewer workers’ compensation claims 14% increase in contributors to 401(k) plan 2. Next assign costs to each factor and estimate increases in work outcomes. Summary of Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes for some Total value of projected improved job outcomes $4,499,000 Projected cost of financial program = $1,600,000 Projected ROI 2.8/1 ($4,499,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate cost data. Decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are additional ROI values, and they are not part of this ROI calculation, although they should be included. Projected 2.8 ROI for ABC Company Detail* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes: Garnishments (2,484 X 0.30 = 745 X $600) $ 447,000 Absenteeism (56,000 X 0.30 X 0.10 = 1,680 X $100) 168,000 Short-term disability (1,259 X 0.30 X $100) 37,000 Turnover (28,000 X 0.0025% = 140 X $6,000) 840,000 Health care costs (28,000 X 0.30 X 0.10 = 840 X $400) 336,000 Workers’ compensation claims ($32M X 0.005) 1,600,000 Health care spending plan (1,353 X 1 X $1,000 X 0.0765) 10,000 (cash) Dependent care spending plan (259 X 1 X 1,000 X 0.0765) 19,000 (cash) Job performance rating (28,000 X 0.30 X 0.05 = 420 X $2,100) 882,000 Work-time on finances (28,000 X 0.30 X 0.05 = 420 X $167) 70,000 Total value of projected improved job outcomes $4,409,000 Cost of financial program = $1,600,000 ROI 2.8/1 ($4,409,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate data. Additional ROI values from decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are not included in this ROI calculation.");sQ1[61]=new Array("http://www.personalfinancefoundation.org/speeches/Financial-Education-in-the-Workplace-New-Thinking.ppt","Tom Garman’s Thoughts on Employee Education","","“Financial Education in the Workplace: New Thinking” “Workplace Financial Literacy Summit” Texas Society of CPAs Federal Reserve Bank, Dallas, TX September 21, 2007 E. Thomas Garman President, Personal Finance Employee Education Foundation Professor Emeritus and Fellow, Virginia Tech University ©Personal Finance Employee Education Foundation, Inc., 2007. USA System of Retirement Income Security The metaphor is a 3-legged stool: Social Security Employer provided pensions Personal savings USA Retirement Finances Defined-Benefit Retirement Pensions (DB Plan = Monthly checks for life) Most USA workers earn Social Security Administration credits during their working years, and retirees are eligible for a SSA defined-benefit pension Example: $1,000/month Aged adults who never worked and those with limited income and resources are eligible for SSA-administered Supplemental Security Income defined-benefit pension Example: $300 to $600/month Some working employees qualify for and may receive an employer-sponsored defined-benefit pension. In 1981, 112,000 plans covered 37% of workers; now 31,000 plans cover <20% Example: $800/month USA Retirement Finances Defined-Contribution Retirement Savings Plans (DC Plan = Lump sum at retirement to manage) Employer-sponsored voluntary retirement plans for individually accumulated savings, such as 401(k) and profit-sharing: Only half of workers are employed by companies that offer a defined-contribution plan Only 2 in 3 eligible employees join Of those who do participate, 7 in 10 are not saving enough for a financially successful retirement (median balance is $58,000) Observation Financing retirement in the USA today is the sole responsibility of the employee Realities of Saving for Retirement (All Are Negatives) Participation and deferral rates in USA retirement savings plans are inadequate Most are not saving enough for retirement Workplace education and advice programs have been less than successful Millions of employees say they cannot afford to save for retirement, and 1 in 4 say credit card debt is a reason Employees do not know what they don’t know Employers and employees do not understand the value of paying for good help — effective workplace financial programs “The lack of financial literacy–spending plans, credit management, and savings—is the major reason why employees do not save for retirement” The Financially Unhealthy 30 million American workers— 1 in 4—report they are seriously financially distressed and dissatisfied with their personal finances National Norms for Financial Well-Being on PFW Scale™© (Mean=5.7; SD=2.4) (1-4: 30%) High distress (7-10: 42%) Low distress (5-6: 28%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale© for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2007. All rights reserved. National Norms: 30% Are Failing Financially With Scores of 1-4 Big Point “Financially unwell employees do not make the best decisions for themselves… or their employers” Not Engaged Passive Confused Anxious What Does Poor Financial Literacy Cost? Research says, “Every time someone on your work team brings his/her money worries to the job, workplace productivity drops” Pay no attention to the elephant! Can you recognize a financially stressed employee? No! “Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line” Research Proves ALL These Factors are Correlated in the Ways Expected Personal Finances: Financial well-being Financial satisfaction Financial distress Financial stressor events Financial behaviors Credit card debt Credit card delinquencies Job Outcomes: Work satisfaction Pay satisfaction Absenteeism Presenteeism (cutting down on normal activities) Personal financial matters interfering with work Work time used to handle personal finances Health What Does Not Decrease Financial Distress? Salary increases Bonuses Attending 401(k) retirement planning seminars and workshops Pastoral counseling Employee Assistance Programs Which Purposefully Decreases Employee Financial Distress and Increases Financial Well-being? Marriage counseling? No Employee Assistance Programs? No Retirement Education Programs? No Credit Counseling? Yes What Else Can Decrease Financial Distress/Improve Financial Well-Being? Provide employees easy access to: Basic financial education Benefits education Credit union Financial advice Estimated Annual Costs of Ignoring Financial Illiteracy © Lost productivity $450a Health care costs (poor health) 300b Subtotal = $750 Health care reimbursement (FICA) 92c Dependent care reimburse (FICA) 382d Traditional health plan choice 800e TOTAL $2,000+ “Employer cost for no action is $750 to $2,000+ per employee!” © Personal Finance Employee Education Foundation, Inc. 2007. How Can Employers Save $750 - $2,000? Demand more from your current 401(k) financial education providers Insist they provide a quality program that emphasizes the basics of personal finance: Spending Plan Credit Management Saving Financially Literate Employees Are Engaged With Money Issues Comparison shop Achieve short, medium and long term savings goals Match product selections with savings goals Enjoy average to above average financial well-being Aware Active Confident Motivated Results for Employees From Quality Financial Program Lower financial distress Increased financial well-being Better health Adequate retirement preparation Improved family relationships Gains in job performance Both Gain…When Employers Provide Employees With Quality Financial Programs Employee Employer Big Point “Employers do not realize they can improve profits –and prove it– by providing employees easy access to quality financial education programs to improve personal financial behaviors” Personal Finance Employee Education Foundation “PFEEF Advocates Best Practices” Provide employers no-cost-to-use tools and expertise to detail the bottom-line benefits of quality financial programs Identify companies whose workplace programs genuinely improve employees’ personal financial behaviors and increase employer profits Use PFW to Benchmark Employee Personal Financial Well-Being Survey employees using the Personal Financial Well-Being (PFW) scale. PFW is 8-item questionnaire that measures financial distress and financial well-being. PFW is a peer-reviewed valid and reliable measure (over 20 years in development). Use of PFW is free with permission. Financial Well-Being and Last Year’s Job Outcomes Survey Personal Financial Well-Being (PFW) of employees, and array scores into 5 groups (20% in each). Compare the mean scores of highest 20% group with lowest 20% on last year’s job outcomes. What are the differences? Human Resources can decide to do nothing. Or, do something! Project Employer’s ROI “Estimate What the Employer Can Gain By Demanding More From Financial Providers?” HR assigns cost values to each job outcome. Estimates projected impacts of financial program on job outcomes. Adds up projected savings. Adds up projected financial program costs. Calculates projected ROI. PFEEF can help with this effort at no cost Prove Financial Program Works (One Year Later) Number of employees with improved personal financial behaviors Aware Active Lower financial distress Increased financial well-being Confident Motivated PFEEF can help with this effort at no cost Prove Value to Employers (One Year Later) Number of employees with improved job outcomes Calculate employer’s return on investment (ROI) Review changes in job outcomes Add up the savings Add up financial program costs Calculate real ROI PFEEF can help with this effort at no cost Many Employers Recognize Problem But Do Nothing “You can lead a horse to water, but you can’t make it drink.” Key Messages 30% of USA employees are dissatisfied with their personal financial situations (scores of 1-4 that are less than middle [5-6]) (What’s the percentage at your workplace?) Employer uses PFW to survey employee financial well-being to establish baseline information Checks company data to project return on investment for improving employee financial well-being Hires the best providers to improve employees’ financial decision making Researches one year later to prove the real bottom-line results Conclusions on Financial Literacy and Workplace Productivity 1. Financially illiterate adults do not manage their personal finances very well and they do not save and invest enough for a financially successful retirement 2. It is in the employer’s best interest—more profits—to provide employees easy access to quality financial programs Why Offer Employees Quality Financial Programs? Legal – “insurance” against litigation (ERISA and SOX liability and CFO nightmare) Bottom-line benefits – better productivity and retention Human resources – attract, retain, reward, motivate the right employees Benefits – facilitates benefit plan changes and behavioral changes Culture – links the program to the values the company wants to instill in employees Social/Moral – it is right thing to do as stewards of employee well-being *Delivering Financial Literacy Instruction to Adults, Garman & Gappinger, 2008, taken from Ernst & Young’s Bill Arnone’s comments on pages 31-35 (Heartland Institute of Financial Education [303-597-0197]) In Closing I leave you with the immortal words of the great baseball player, Yogi Berra, of the New York Yankees, who often fractured the English language with his truisms like: “If you don’t know where you are going, you will end up somewhere else” Thanks! Information/Footnotes Dr. E. Thomas Garman Professor Emeritus and Fellow, Virginia Tech University President, Personal Finance Employee Education Foundation 9402 SE 174th Loop, Summerfield, FL 34491 USA Tele/Fax: 352-347-1345 E-mail: ethomasgarman@yahoo.com Web: www.personalfinancefoundation.org To examine the PFW Scale™ and read research articles about its use, see http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=290&top_id=21 http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=303&top_id=21 New Book: Delivering Financial Literacy Instruction to Adults, Garman & Gappinger, Heartland Institute for Financial Education (303-597-0197) For permission to use the PFW Scale™, fill out form on website Footnotes: a Based on reduced absenteeism and less work time dealing with personal financial concerns. See research and press releases at www.PersonalFinanceFoundation.org b Conservative estimate; research underway c $1,200 contribution to health reimbursement plan ($1,200 X 0.0765) d $5,000 contribution to dependent care reimbursement plan ($5,000 X 0.0765) e Employee stays in high-cost health plan instead of choosing less expensive CDHC policy (consumer driven health care) ABC Company Projected 1-Year Work Outcomes 1. Projected 1-year changes in work outcomes: 12% will improve job performance rating 16% fewer garnishments 16% will have reduced absenteeism 5% less turnover compared to average 10% will spend less work-time spent on personal finances 8% less short-term disability 9% lower health care costs 21% will contribute to 125-plans 5% fewer accidents/workplace violence 5% fewer thefts 10% fewer workers’ compensation claims 14% increase in contributors to 401(k) plan 2. Next assign costs to each factor and estimate increases in work outcomes. Summary of Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes for some Total value of projected improved job outcomes $4,499,000 Projected cost of financial program = $1,600,000 Projected ROI 2.8/1 ($4,499,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate cost data. Decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are additional ROI values, and they are not part of this ROI calculation, although they should be included. Projected 2.8 ROI for ABC Company Detail* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes: Garnishments (2,484 X 0.30 = 745 X $600) $ 447,000 Absenteeism (56,000 X 0.30 X 0.10 = 1,680 X $100) 168,000 Short-term disability (1,259 X 0.30 X $100) 37,000 Turnover (28,000 X 0.0025% = 140 X $6,000) 840,000 Health care costs (28,000 X 0.30 X 0.10 = 840 X $400) 336,000 Workers’ compensation claims ($32M X 0.005) 1,600,000 Health care spending plan (1,353 X 1 X $1,000 X 0.0765) 10,000 (cash) Dependent care spending plan (259 X 1 X 1,000 X 0.0765) 19,000 (cash) Job performance rating (28,000 X 0.30 X 0.05 = 420 X $2,100) 882,000 Work-time on finances (28,000 X 0.30 X 0.05 = 420 X $167) 70,000 Total value of projected improved job outcomes $4,409,000 Cost of financial program = $1,600,000 ROI 2.8/1 ($4,409,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate data. Additional ROI values from decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are not included in this ROI calculation.");sQ1[62]=new Array("http://www.personalfinancefoundation.org/speeches/Fiduciary-Adviser-a-Holistic-Solution.ppt","Slide 1","","Fiduciary Adviser a Holistic Solution Don Atherton, CEBS, CFP® President, Integrated Benefits Solutions, Inc. (713) 706-3600 don.atherton@ibslinks.com E. Thomas Garman President, Personal Finance Employee Education Foundation (352) 347-1345 ethomasgarman@yahoo.com ISCEBS Employee Benefit Symposium 2007 Discussion Overview Today’s retirement savings realities Workplace financial literacy How financial literacy and advice programs can increase ROI PPA fiduciary advisory models 2 Today’s Retirement Realities A career represents the sum of multiple employer experiences 401(k) plans are the primary retirement savings vehicle Poor 401(k) plan participation Inadequate salary deferral rates Investment underperformance 3 Today’s Retirement Realities Longer life expectancy Increasing financial insecurity Greater need for long term care Elimination of retiree medical benefits Retirement education alone has failed Employees want help and need holistic personalized planning 4 Compounding Elements Negative consumer savings rate Increasing consumer debt Complex income and estate tax laws High cost to educate children Potential need to financially assist parents 5 Compounding Elements Complex health and welfare plans Increasing cost of health care Expansive voluntary benefit plans 1 in 4 workers report they are in serious financial distress 6 Financial Well-Being (7-10: 42%) (1-4: 30%) (5-6: 28%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale© for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2007. All rights reserved. Factors Correlated as Expected Personal Financial: Financial well-being Financial satisfaction Financial distress Financial stressor events Job Outcomes: Work satisfaction Pay satisfaction Absenteeism Presenteeism 8 Factors Correlated as Expected Personal Finances: Financial behaviors Job Outcomes: Personal matters interfering with work Work time used to handle personal finances Increased health plan cost Credit card debt Credit card delinquencies 9 Workplace Financial Literacy Millions of employees say they cannot afford to save for retirement; 1 in 4 say credit card debt is a reason Employees do not know what they don’t know Employers and employees do not understand the value of effective workplace financial programs 10 Successful Program Example Results from InCharge Education Foundation 18-Month Panel Study (2003-2005) of 7,000 credit counseling clients Credit counseling provides one-on-one money and credit management suggestions, a debt management program, and education 11 “Financial Stress Today” Level of Financial Stress “Severe” to “Overwhelming” “High” to “Overwhelming” 2005: Data shown for “bottom 4” responses (the negative end,1-4 on a ten point scale) 2003: data shown for “bottom 2” responses (the negative end,1-2 on a five point scale) Impact of Credit Counseling (on Health and Family Problems) Health Family *Choices were “Yes” or ”No”. This chart is based on question 14 “Since you joined InCharge, has your health improved?” And question 15 “Since you joined InCharge, have your family relationships improved?” “Feel That Concerns About Personal Finances Interfere With Work” Financial Concerns Interfere “Sometimes” to “Very Often” 2003 2005 Based on Question 21 in the 2005 survey. This chart represents the percentage of responses from the bottom half of each scale (2003 and 2005). Time Lost At Work* (Average Number of Days) D a y s per M o n th Days Absent (per Year) * Note: Time spent not working for any reason Incidence of Spending Time at Work on Personal Finances Respondents Reporting Time Not Working 2003 2005 Based on question 22 in 2005, question 25 in 2003. Responses shown are the bottom half of the scales (sometimes to very often), 2003 and 2005. Hours Per Month Spent on Personal Finances at Work Hours Per Month 2003 2005 Note: In 2005, Q22 asked panelists to estimate Average Hours per month spent not working due to financial concerns. Main Personal Financial Activities Done During Work Hours Percent Who Engaged in This Behavior Changes over the Past 18 Months. Estimated Costs of Ignoring Financial Illiteracy © Lost productivity $450a Health care costs (poor health) 300b Subtotal = $750 Health care reimbursement (FICA) 92c Dep care reimbursement (FICA) 382d Traditional health plan choice 800e TOTAL = $2,000+ “Annual Employer cost for not taking action can be $2,000+ per employee!” © Personal Finance Employee Education Foundation, Inc. 2007. What Does NOT Decrease Financial Distress? Salary increases Bonuses Attending 401(k) retirement planning seminars and workshops Pastoral counseling Employee Assistance Programs 20 Attainable Results Lower financial distress Increased financial well-being Better health Adequate retirement preparation Improved family relationships Gains in job performance 21 Financially Literate Employees are Engaged With Money Issues Comparison shop (including healthcare) Achieve short, medium and long term savings goals Match product selections with savings goals Enjoy average to above average financial well-being 22 Quality Financial Programs Results For Employees Lower financial distress Increased financial well-being Adequate retirement preparation Improved family relationships Gains in job performance For Employers Higher productivity Lower absenteeism Better presenteeism Lower turnover Better employee health More profits 23 Recommended Actions Financial Literacy Implement financial education program which emphasizes the basics of personal finance Provide easy access to non-profit credit counseling 24 401(k) Plan Recommended Actions Adopt 401(k) Plan automatic enrollment Utilize Qualified Default Investment Alternative (QDIA) Incorporate automatic annual deferral increases Engage a “fiduciary adviser” to provide holistic financial planning 25 Automatic Enrollment Effective January 1, 2008 PPA preempts state laws Allows for negative elections minimum of 3% 90 day penalty fee reversal period Annual increase 1% per year maximum of 6% 26 PPA - 2006 Qualified Default Investment Alternatives Balance Fund Lifecycle Fund Managed Account Auto-enrollment safe harbor match Formula 100% for the first one percent 50% for the next five percent Vesting – two year cliff Eliminates ADP and ACP testing requirement 27 Participant Level Advice Pre - PPA Fiduciary Level compensation Sponsor liable for investment advice PPA Co-fiduciary Variable or level Compensation Sponsor not liable for investment advice 28 Sponsor Fiduciary Relief Gained by: Prudently select Fiduciary Adviser Use of eligible investment advice arrangement Providing employees notice of conflicts and other key disclosures Determining that compensation paid to the fiduciary adviser or its’ affiliates is reasonable and as favorable to the plan as available in the market Performing independent annual audits 29 Types of Fiduciary Adviser Conflicted Typically Product provider Varied compensation Computer model advice Un-Conflicted Typically Independent Adviser Level compensation Personalized advice 30 Conflicted - Fiduciary Adviser Variable compensation dependent upon investment choices / transactions Advice exclusively driven by a computer model Interpretation provided by call center representatives Challenge to deliver holistic solution 31 Conflicted - Computer Model Valid and developed independently Based on generally accepted investment theories Uses relevant participant information Applies objective criteria to define appropriate asset allocation for investments under the plan Unbiased evaluation of all investment options offered by the fiduciary adviser or its related affiliates 32 Un-conflicted – Fiduciary Adviser Level compensation for all plan investments and transactions Personalized independent planning Delivered in person or through a call center Supports holistic financial planning all employee benefit plans personal savings, insurance, or other assets 33 Un-conflicted Fiduciary Adviser Prudent Selection Advisers’ regulatory history Quality of results for existing clients Knowledge of the subject Potential conflicts of interest Clearly defined service to be provided 34 Adviser Fees At least as favorable as in the market Paid by the plan, the employee, from forfeitures, the employer or any combination Based on: fixed cost per employee basis points of all plan assets basis points of employees’ account balance of employees utilizing service annual fee paid by employer 35 Estimated Costs of Ignoring Financial Illiteracy © Lost productivity $450a Health care costs (poor health) 300b Subtotal = $750 Health care reimbursement (FICA) 92c Dep care reimbursement (FICA) 382d Traditional health plan choice 800e TOTAL = $2,000+ “Annual Employer cost for no action can be $2,000+ per employee!” © Personal Finance Employee Education Foundation, Inc. 2007. “The lack of financial literacy–spending plans, credit management, and savings—is the major reason why employees do not save for retirement” 37 Conclusions on Financial Literacy and Workplace Productivity 1. Financially illiterate adults do not manage their personal finances very well and they do not save and invest enough for a financially successful retirement 2. It is in the employer’s best interest—more profits—to provide employees easy access to quality financial programs 38 Personal Finance Employee Education Foundation “PFEEF Advocates Best Practices” Provides employers no-cost-to-use tools and expertise to detail the bottom-line benefits of quality financial programs Identifies companies whose workplace programs genuinely improve employees’ personal financial behaviors and increase employer profits 39 Use PFW to Assess Employee Personal Financial Well-Being Survey employees using the Personal Financial Well-Being (PFW) scale. PFW is 8-item questionnaire that measures financial distress and financial well-being. PFW is a peer-reviewed valid and reliable measure (over 20 years in development). Use of PFW is free with permission. 40 In Closing We leave you with the immortal words of the great baseball player, Yogi Berra, of the New York Yankees, who often fractured the English language with his truisms like: “If you don’t know where you are going, you will end up somewhere else.” 41 Information/Footnotes E. Thomas Garman President, Personal Finance Employee Education Foundation Professor Emeritus and Fellow, Virginia Tech University 9402 SE 174th Loop, Summerfield, FL 34491 USA Tele/Fax: 352-347-1345 E-mail: ethomasgarman@yahoo.com Web: www.personalfinancefoundation.org To examine the PFW Scale™ and read research articles about its use, see http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=290&top_id=21 http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=303&top_id=21 New Book: Delivering Financial Literacy Instruction to Adults, Garman & Gappinger, Heartland Institute for Financial Education (303-597-0197) For permission to use the PFW Scale™, contact Dr. Garman Footnotes: a Based on reduced absenteeism and less work time dealing with personal financial concerns. See research and press releases at www.PersonalFinanceFoundation.org b Conservative estimate; research underway c $1,200 contribution to health reimbursement plan ($1,200 X 0.0765) d $5,000 contribution to dependent care reimbursement plan ($5,000 X 0.0765) e Employee stays in high-cost health plan instead of choosing less expensive CDHC policy (consumer driven health care) 42 Information/Footnotes Don Atherton, MBA, CEBS, CFP®, CLU, AIF® Integrated Benefits Solutions, Inc. 650 North Sam Houston Parkway East, Suite 553 Houston, Texas 77060 713-706-3600 don.atherton@ibslinks.com 43 ABC Company Projected 1-Year Changes 1. Projected 1-year changes in work outcomes: 12% will improve job performance rating 16% fewer garnishments 16% will have reduced absenteeism 5% less turnover compared to average 10% will spend less work-time spent on personal finances 8% less short-term disability 9% lower health care costs 21% will contribute to 125-plans 5% fewer accidents/workplace violence 5% fewer thefts 10% fewer workers’ compensation claims 14% increase in contributors to 401(k) plan 2. Next assign costs to each factor and estimate increases in work outcomes. 44 Summary of Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes for some Total value of projected improved job outcomes $4,499,000 Projected cost of financial program = $1,600,000 Projected ROI 2.8/1 ($4,499,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate cost data. Decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are additional ROI values, and they are not part of this ROI calculation, although they should be included. 45");sQ1[63]=new Array("http://www.personalfinancefoundation.org/speeches/Employers-Can-Profit-by-Meeting-the-Educational-Desires.ppt","Tom Garman’s Thoughts on Employee Education","","“Employers Can Profit by Meeting the Educational Desires of Financially Distressed Credit Counseling Clients ” Financial Counseling Network Fall Financial Conference Orlando, FL – August 29, 2007 E. Thomas Garman President, Personal Finance Employee Education Foundation Professor Emeritus and Fellow, Virginia Tech University ©Personal Finance Employee Education Foundation, Inc., 2007. USA System of Retirement Income Security The metaphor is a 3-legged stool: Social Security Employer provided pensions Personal savings USA Retirement Finances Defined-Benefit Retirement Pensions (DB Plan = Monthly checks for life) Most USA workers earn Social Security Administration credits during their working years, and retirees are eligible for a SSA defined-benefit pension Example: $1,000/month Aged adults who never worked and those with limited income and resources are eligible for SSA-administered Supplemental Security Income defined-benefit pension Example: $300 to $600/month Some working employees qualify for and may receive an employer-sponsored defined-benefit pension. In 1981, 112,000 plans covered 37% of workers; now 31,000 plans cover <20% Example: $800/month USA Retirement Finances Defined-Contribution Retirement Savings Plans (DC Plan = Lump sum at retirement to manage) Employer-sponsored voluntary retirement plans for individually accumulated savings, such as 401(k) and profit-sharing: Only half of workers are employed by companies that offer a defined-contribution plan Only 2 in 3 eligible employees join Of those who do participate, 7 in 10 are not saving enough for a financially successful retirement (median balance is $58,000) Observation Financing retirement in the USA today is the sole responsibility of the employee Realities of Saving for Retirement (All Are Negatives) Participation and deferral rates in USA retirement savings plans are inadequate Most are not saving enough for retirement Workplace education and advice programs have been less than successful Millions of employees say they cannot afford to save for retirement, and 1 in 4 say credit card debt is a reason Employees do not know what they don’t know Employers and employees do not understand the value of paying for good help — effective workplace financial programs “The lack of financial literacy–spending plans, credit management, and savings—is the major reason why employees do not save for retirement” Life Activities or Experiences That Apply to You Right Now* Questions Percent Coping with a financial crisis or trying to reduce my debt 49 Paying for my children’s education 22 Saving for/purchasing a home 22 NET (ANY OF THE THREE) 67 *The Concours Group-Age Wave- Harris Interactive, The New Employer/Employee Equation, 2005. The Financially Unhealthy 30 million American workers— 1 in 4—report they are seriously financially distressed and dissatisfied with their personal finances National Norms for Financial Well-Being on IFDFW Scale© (Mean=5.7; SD=2.4) (1-4: 30%) (5-6: 28%) (7-10: 42%) (1-4: 30%) (5-6: 28%) (7-10: 42%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale© for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2007. All rights reserved. National Norms: 30% Are Failing Financially With Scores of 1-4 Big Point “Financially unwell employees do not make the best decisions for themselves… or their employers” Not Engaged Passive Confused Anxious “Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line” Employers Already Know That Smoking is bad for employee health and the company’s bottom line Do Employers Also Know? The same is true of employees who have money worries What Does Poor Financial Literacy Cost? Research says, “Every time someone on your work team brings his/her money worries to the job, workplace productivity drops” Pay no attention to the elephant! Can you recognize a financially stressed employee? No! 60+ Research Studies Prove ALL These Factors are Correlated in the Ways Expected Personal Finances: Financial well-being Financial satisfaction Financial distress Financial stressor events Financial behaviors Credit card debt Credit card delinquencies Job Outcomes: Work satisfaction Pay satisfaction Absenteeism Presenteeism (cutting down on normal activities) Personal financial matters interfering with work Work time used to handle personal finances Health 60+ Research Studies Prove Quality Financial Programs Lead To For Employees Lower financial distress Increased financial well-being Adequate retirement preparation Improved family relationships Gains in job performance For Employers Higher productivity Lower absenteeism Better presenteeism Lower turnover Better employee health More profits Estimated Annual Costs of Ignoring Financial Illiteracy © Lost productivity $450a Health care costs (poor health) 300b Subtotal = $750 Health care reimbursement (FICA) 92c Dependent care reimburse (FICA) 382d Traditional health plan choice 800e TOTAL $2,000+ “Employer cost for no action is $750 to $2,000+ per employee!” © Personal Finance Employee Education Foundation, Inc. 2007. How Can Employers Get These Results? Demand more from your current 401(k) financial education provider Insist they provide a quality program that emphasizes the basics of personal finance: Spending Plan Credit Management Saving National Survey of Non-Finance Counseling Professionals* (Psychological counseling is often provided as an employee benefit) 70% indicated that financial issues frequently arose in counseling sessions. 82% said budgeting and cash flow management are the most common financial issue related to marital conflict or divorce. *Wiggins, “Are You Listening?” The Standard (Association for Financial Counseling and Planning Education), July 2007, 9. Employees with financial problems should not seek financial advice from these professionals Hire Credit Counseling as a Financial Program Offered as a Employee Benefit Which financial program purposefully decreases employee financial distress and increases financial well-being? Marriage counseling? Employee Assistance Programs? Retirement Education Programs? Credit Counseling! Put an “Employer’s Only” link on your website! Educational Desires of Financially Distressed Employees* (Credit Counseling Clients) Desired Financial Education Topics Percent Budgeting/Money Management 48 Saving for Future Needs 48 Saving for Retirement 37 Lowering Monthly Credit Payments 31 Understanding IRA and 401(k) Plans 24 Reducing Income Taxes 21 Avoiding Costly Financial Mistakes 20 Understanding Credit Scores 19 *Bailey, Sorhaindo, Garman, “Educational Desires of Credit Counseling Clients,” Financial Counseling and Planning (14:1), 2003, 51-56. Active Versus Inactive Credit Counseling Clients* (18 months later) Both groups showed improvements in good financial management behaviors fewer financially stressful events Active clients exhibited greater change than the inactive group *Kim & Garman, “Effects of Credit Counseling and Debt Management on Financial Stressors and Financial Management Behaviors,” Journal of Family and Consumer Sciences, 2006. Length of Time Spent in a Debt Management Program* “During the past 6 months how often have you experienced the following?” (9 financial stressor events were listed) Those reporting a reduction in the frequency occurrences of - negative bill-paying events exhaustion of liquid assets had higher PFW scores Those with longer participation in a DMP had higher PFW scores (lower financial distress/ higher financial well-being) *Prawitz, O’Neill, Sorhaindo, Kim, & Garman, “Financial Distress/Financial Well-Being: Do Length of Time Spent in a Debt Management Program and Reduction in Financial Distress Events Make a Difference?” Consumer Interest Annual, 2007. Subsequent Borrower Behavior of Former Credit Counseling Clients* Substantial reductions in debt and account usage Positive changes in credit profile and credit worthiness performance Greatest benefits obtained by those borrowers who had the least ability to handle credit prior to counseling *Ellihausen, Lunquest, & Statten, “The Impact of Credit Counseling on Subsequent Borrow Behavior,” The Journal of Consumer Affairs, 2007. Financial Behaviors of Credit Counseling Clients* Those who have significantly more “positive financial behaviors” than other clients report: More secure retirement Better family relationships Higher score on self-evaluation of financial behaviors *Xiao, Sorhaindo, Garman, “Financial Behaviours of Consumers in Credit Counseling,” International Journal of Consumer Studies (29), 2005, 24-38. Results for Employees From Quality Financial Program (Based on published peer-reviewed research) Lower financial distress Increased financial well-being Better health Adequate retirement preparation Improved family relationships Gains in job performance Financially Literate Employees Are Engaged With Money Issues Comparison shop Achieve short, medium and long term savings goals Match product selections with savings goals Enjoy average to above average financial well-being Aware Active Confident Motivated Big Point “Employers do not realize they can improve profits –and prove it– by providing employees easy access to quality financial education programs to improve personal financial behaviors” Both Gain…When Employers Provide Employees With Quality Financial Programs Benefits of financial programs become evident when the employer benchmarks the levels of employee financial well-being. Employee Employer Personal Finance Employee Education Foundation “PFEEF Advocates Best Practices” Provides employers no-cost-to-use tools and expertise to detail the bottom-line benefits of quality financial programs Promotes providers whose workplace programs genuinely improve employees’ personal financial behaviors and increase employer profits Use PFW to Assess Employee Personal Financial Well-Being Survey employees using the Personal Financial Well-Being (PFW) scale. PFW is 8-item questionnaire that measures financial distress and financial well-being. PFW is a peer-reviewed valid and reliable measure (over 20 years in development). Use of PFW is free with permission. Benchmark Employee Financial Well-Being Survey Personal Financial Well-Being (PFW) of employees, and array scores into 5 groups (20% in each). Compare the mean scores of highest 20% group with lowest 20% on last year’s job outcomes. What are the differences? Human Resources can decide to do nothing. Or, do something! Calculate Employer’s Projected ROI “Estimate What the Employer Can Gain By Demanding More From Financial Provider?” HR assigns cost values to each job outcome. Estimates projected impacts of financial program on job outcomes. Adds up projected savings. Adds up projected financial program costs. Calculates projected ROI. PFEEF can help prove this at no cost Prove Financial Program Works (One Year Later) Number of employees with improved personal financial behaviors who report Aware Active Lower financial distress Increased financial well-being Confident Motivated PFEEF can help prove this at no cost Prove Value to Employers (One Year Later) Number of employees with improved job outcomes Calculate employer’s return on investment (ROI) Review changes in job outcomes Add up the savings Add up financial program costs Calculate real ROI PFEEF can help prove this at no cost Employer Who Recognizes Problem, But Does Nothing “You can lead a horse to water, but you can’t make it drink.” Key Messages 30% of USA employees are dissatisfied with their personal financial situations (scores of 1-4 that are less than middle [5-6]) (What’s the percentage at your workplace?) Employer uses PFW to survey employee financial well-being to establish baseline information Checks company data to project return on investment for improving employee financial well-being Hires the best provider to improve employees’ financial decision making Researches one year later to prove the real bottom-line results Conclusions on Financial Literacy and Workplace Productivity 1. Financially illiterate adults do not manage their personal finances very well and they do not save and invest enough for a financially successful retirement 2. It is in the employer’s best interest—more profits—to provide employees easy access to quality financial programs Why Offer Employees Quality Financial Programs? Ernst &Young’s William Arnone Says*: Legal – “insurance” against litigation (ERISA and SOX liability and CFO nightmare) Bottom-line benefits – better productivity and retention Human resources – attract, retain, reward, motivate the right employees Benefits – facilitates benefit plan changes and behavioral changes Culture – links the program to the values the company wants to instill in employees Social/Moral – it is right thing to do as stewards of employee well-being *Delivering Financial Literacy Instruction to Adults, 2008 (Garman and Gappinger, Heartland Institute of Financial Education [303-597-0197]) In Closing I leave you with the immortal words of the great baseball player, Yogi Berra, of the New York Yankees, who often fractured the English language with his truisms like: “If you don’t know where you are going, you will end up somewhere else” Thanks! Information/Footnotes Dr. E. Thomas Garman President, Personal Finance Employee Education Foundation Professor Emeritus and Fellow, Virginia Tech University 9402 SE 174th Loop, Summerfield, FL 34491 USA Tele/Fax: 352-347-1345 E-mail: ethomasgarman@yahoo.com Web: www.personalfinancefoundation.org To examine the PFW Scale™ and read research articles about its use, see http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=290&top_id=21 http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=303&top_id=21 New Book: Delivering Financial Literacy Instruction to Adults, Garman & Gappinger, Heartland Institute for Financial Education (303-597-0197) For permission to use the PFW Scale™, contact Dr. Garman Footnotes: a Based on reduced absenteeism and less work time dealing with personal financial concerns. See research and press releases at www.PersonalFinanceFoundation.org b Conservative estimate; research underway c $1,200 contribution to health reimbursement plan ($1,200 X 0.0765) d $5,000 contribution to dependent care reimbursement plan ($5,000 X 0.0765) e Employee stays in high-cost health plan instead of choosing less expensive CDHC policy (consumer driven health care) ABC Company Projected 1-Year Changes 1. Projected 1-year changes in work outcomes: 12% will improve job performance rating 16% fewer garnishments 16% will have reduced absenteeism 5% less turnover compared to average 10% will spend less work-time spent on personal finances 8% less short-term disability 9% lower health care costs 21% will contribute to 125-plans 5% fewer accidents/workplace violence 5% fewer thefts 10% fewer workers’ compensation claims 14% increase in contributors to 401(k) plan 2. Next assign costs to each factor and estimate increases in work outcomes. Summary of Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes for some Total value of projected improved job outcomes $4,499,000 Projected cost of financial program = $1,600,000 Projected ROI 2.8/1 ($4,499,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate cost data. Decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are additional ROI values, and they are not part of this ROI calculation, although they should be included. Appendix: Detail on Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes: Garnishments (2,484 X 0.30 = 745 X $600) $ 447,000 Absenteeism (56,000 X 0.30 X 0.10 = 1,680 X $100) 168,000 Short-term disability (1,259 X 0.30 X $100) 37,000 Turnover (28,000 X 0.0025% = 140 X $6,000) 840,000 Health care costs (28,000 X 0.30 X 0.10 = 840 X $400) 336,000 Workers’ compensation claims ($32M X 0.005) 1,600,000 Health care spending plan (1,353 X 1 X $1,000 X 0.0765) 10,000 (cash) Dependent care spending plan (259 X 1 X 1,000 X 0.0765) 19,000 (cash) Job performance rating (28,000 X 0.30 X 0.05 = 420 X $2,100) 882,000 Work-time on finances (28,000 X 0.30 X 0.05 = 420 X $167) 70,000 Total value of projected improved job outcomes $4,409,000 Cost of financial program = $1,600,000 ROI 2.8/1 ($4,409,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate data. Additional ROI values from decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are not included in this ROI calculation.");sQ1[64]=new Array("http://www.personalfinancefoundation.org/speeches/Financial-Literacy-and-Workplace-Productivity.ppt","Tom Garman’s Thoughts on Employee Education","","“Financial Literacy and Workplace Productivity” Georgia Consortium for Financial Literacy Federal Reserve Bank of Atlanta Atlanta, Georgia - April 26, 2007 Presented by E. Thomas Garman Professor Emeritus and Fellow, Virginia Tech University ©Personal Finance Employee Education Foundation, Inc., 2007. USA System of Retirement Income Security The metaphor is a 3-legged stool: Social Security Employer provided pensions Personal savings USA Retirement Finances Defined-Benefit Retirement Pensions (DB Plan = Monthly checks for life) Most USA workers earn Social Security Administration credits during their working years, and retirees are eligible for a SSA defined-benefit pension. Example: $1,000/month Aged adults who never worked and those with limited income and resources are eligible for SSA-administered Supplemental Security Income defined-benefit pension. Example: $300 to $600/month Some working employees qualify for and may receive an employer-sponsored defined-benefit pension. In 1981, 112,000 plans covered 37% of workers; now 31,000 plans cover <20% Example: $800/month USA Retirement Finances Defined-Contribution Retirement Savings Plans (DC Plan = Lump sum at retirement to manage) Employer-sponsored voluntary retirement plans for individually accumulated savings, such as 401(k) and profit-sharing: Only half of workers are employed by companies that offer a defined-contribution plan. Only 2 in 3 eligible employees join. Of those who do participate, 7 in 10 are not saving enough for a financially successful retirement (median balance is $58,000). Observation Financing retirement in the USA is fast becoming the sole responsibility of the employee. Realities of Saving for Retirement Participation and deferral rates in USA retirement savings plans are inadequate. 7 in 10 are not prepared for retirement. Workplace education and advice programs have been less than successful. Millions of employees say they cannot afford to save for retirement. Employees do not know what they don’t know. Employers and employees do not understand the value of paying for good help — effective workplace financial programs. A Major Reason for the Problem 30 million American workers— 1 in 4—report they are seriously financially distressed and dissatisfied with their personal finances. National Norms for Financial Well-Being on IFDFW Scale© (Mean=5.7; SD=2.4) (1-4: 30%) (5-6: 28%) (7-10: 42%) (1-4: 30%) (5-6: 28%) (7-10: 42%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale© for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2007. All rights reserved. National Norms: 30% Are Failing Financially With Scores of 1-4 Big Point “Financially unwell employees do not make the best decisions for themselves… or their employers.” Not Engaged Passive Confused Anxious “Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line.” What Does Poor Financial Literacy Cost? Research says, “Every time someone on your work team brings his/her money worries to the job, workplace productivity drops” Pay no attention to the elephant! Can you recognize a financially stressed employee? No! Employer Who Recognizes Problem, But Does Nothing Research Proves ALL These Factors are Correlated in the Ways Expected Personal Finances: Financial well-being Financial satisfaction Financial distress Financial stressor events Financial behaviors Credit card debt Credit card delinquencies Job Outcomes: Work satisfaction Pay satisfaction Absenteeism Presenteeism (cutting down on normal activities) Personal financial matters interfering with work Work time used to handle personal finances Health Big Point “Employers do not realize they can improve profits –and prove it– by providing employees easy access to quality financial education programs to improve personal financial behaviors” Quality Workplace Financial Programs Rescue Employees and Employers One Who is Financially Literate…is Engaged in Money Issues Comparison shops Achieves short, medium and long term savings goals Matches product selections with savings goals Enjoys average to above average financial well-being Aware Active Confident Motivated Better Financial Behaviors Result in Desirable Work Outcomes Less work time dealing with money matters Fewer wage garnishments Less absenteeism and short-term disability Reduced turnover Fewer workers’ compensation claims Increased engagement with job Better job performance/productivity ratings Reduced health care demand Reduced Social Security taxes on 125 plans Fewer accidents Reduced legal liability on 401(k) plan Estimated Annual Costs of Ignoring Financial Illiteracy © Lost productivity $450a Health care costs (poor health) 300b Subtotal = $750 Health care reimbursement (FICA) 92c Dependent care reimburse (FICA) 382d Traditional health plan choice 800e TOTAL $2,000+ “Employer cost for no action is $750 to $2,000+ per employee!” © Personal Finance Employee Education Foundation, Inc. 2007. Personal Finance Employee Education Foundation “Helps top management —one at a time— use company data to understand the bottom- line wisdom of workplace financial programs.” Both Gain…When Employers Provide Employees With Quality Financial Programs So, Prove It Prove the financial program works. Prove the employer’s return on investment (ROI). Benefits of financial programs become evident when the employer benchmarks the levels of employee financial well-being before and after implementing a financial program. Employee Employer Benchmark Employee Personal Financial Well-Being Survey employees using the Personal Financial Well-Being (PFW) scale. PFW is 8-item questionnaire that measures financial distress and financial well-being. PFW is a valid and reliable measure. Usage of PFW is free with permission. How to Benchmark and Project the Employer’s ROI Survey Personal Financial Well-Being (PFW) of employees, and array scores into 5 groups (20% in each). Compare group mean scores of highest 20% with lowest 20% on last year’s job outcomes. What are the differences? Assign cost values to each job outcome. Conservatively estimate projected impacts of financial program on job outcomes. Add up projected savings. Add up projected financial program costs. Calculate projected ROI. ABC Company Projected 1-Year Changes 1. Projected 1-year changes in work outcomes: 12% will improve job performance rating 16% fewer garnishments 16% will have reduced absenteeism 5% less turnover compared to average 10% will spend less work-time spent on personal finances 8% less short-term disability 9% lower health care costs 21% will contribute to 125-plans 5% fewer accidents/workplace violence 5% fewer thefts 10% fewer workers’ compensation claims 14% increase in contributors to 401(k) plan 2. Next assign costs to each factor and estimate increases in work outcomes. Summary of Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes for some Total value of projected improved job outcomes $4,499,000 Projected cost of financial program = $1,600,000 Projected ROI 2.8/1 ($4,499,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate cost data. Decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are additional ROI values, and they are not part of this ROI calculation, although they should be included. Mount Quality Financial Program Deliver to all employees and focus on impacting those with low financial well-being. Emphasize the basics of personal finance: Money Management Credit Management Spending and Saving How to Calculate the Real ROI (One Year Later) Review changes in job outcomes. Add up the savings. Add up financial program costs. Calculate real ROI. Key Messages 30% of USA employees are dissatisfied with their personal financial situations (scores of 1-4 that are less than middle [5-6]). (What’s the percentage at your workplace?) Employer uses PFW to survey employee financial well-being to establish baseline information. Checks company data to project return on investment for improving employee financial well-being. Hires the best provider to improve employees’ financial decision making. Surveys PFW one year later to prove the real bottom-line results. Conclusions on Retirement and Poor Personal Finances 1. Financially illiterate adults do not manage their personal finances very well and they do not save and invest enough for a financially successful retirement. 2. It is in the employer’s best interest—more profits—to provide employees easy access to quality financial programs. In Closing I leave you with the immortal words of the great baseball player, Yogi Berra, of the New York Yankees, who often fractured the English language with his truisms like: “If you don’t know where you are going, you will end up somewhere else.” Thanks! Information/Footnotes Dr. E. Thomas Garman Professor Emeritus and Fellow, Virginia Tech University President, Personal Finance Employee Education Foundation 9402 SE 174th Loop, Summerfield, FL 34491 USA Tele/Fax: 352-347-1345 E-mail: ethomasgarman@yahoo.com Web: www.personalfinancefoundation.org To examine the PFW Scale™ and read research articles about its use, see http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=290&top_id=21 http://www.afcpe.org/pages/journal_abstract.cfm?journal_id=303&top_id=21 For permission to use the PFW Scale™, contact Dr. Garman Footnotes: a Based on reduced absenteeism and less work time dealing with personal financial concerns. See research and press releases at www.PersonalFinanceFoundation.org b Conservative estimate; research underway c $1,200 contribution to health reimbursement plan ($1,200 X 0.0765) d $5,000 contribution to dependent care reimbursement plan ($5,000 X 0.0765) e Employee stays in high-cost health plan instead of choosing less expensive CDHC policy (consumer driven health care) Appendix: Detail on Projected 2.8 ROI for ABC Company* Program offered to 28,000 employees Program impacts 30% of employees, 8,400, in varying degrees of effectiveness resulting in improved financial behaviors and job outcomes: Garnishments (2,484 X 0.30 = 745 X $600) $ 447,000 Absenteeism (56,000 X 0.30 X 0.10 = 1,680 X $100) 168,000 Short-term disability (1,259 X 0.30 X $100) 37,000 Turnover (28,000 X 0.0025% = 140 X $6,000) 840,000 Health care costs (28,000 X 0.30 X 0.10 = 840 X $400) 336,000 Workers’ compensation claims ($32M X 0.005) 1,600,000 Health care spending plan (1,353 X 1 X $1,000 X 0.0765) 10,000 (cash) Dependent care spending plan (259 X 1 X 1,000 X 0.0765) 19,000 (cash) Job performance rating (28,000 X 0.30 X 0.05 = 420 X $2,100) 882,000 Work-time on finances (28,000 X 0.30 X 0.05 = 420 X $167) 70,000 Total value of projected improved job outcomes $4,409,000 Cost of financial program = $1,600,000 ROI 2.8/1 ($4,409,000/$1,600,000) *These calculations are reasonable estimates, not guarantees. Some numbers are very low estimates and ABC Company’s Human Resources Department has the most accurate data. Additional ROI values from decreases in accidents, workplace violence, and theft, and reduced fiduciary liability are not included in this ROI calculation.");sQ1[65]=new Array("http://www.personalfinancefoundation.org/speeches/Taking-the-Holistic-Approach-to-Advising-Employees.ppt","PowerPoint Presentation","","Driving Better Participant Outcomes: Taking the Holistic Approach to Advising Employees E. Thomas Garman Panelists: Daryl Thompson, Grant Slade, Kelly Mullin, and Scott Coopersmith Presented at P&I East Coast Defined Contribution Conference 2006 February 28, 2006 The PGA National Resort & Spa Palm Beach Gardens, FL After All These Years… Employers have not been successful at getting employees to take ownership of the retirement planning task Employees are still not prepared to carry the retirement planning responsibility passed to them by their employers While employers realize that communication, education and advice are “their job,” they still do not know how to best help employees Let’s Be Frank… Participation and deferral rates remain inadequate Education and advice programs have failed Employees do not know what they don’t know Getting good help costs money and most employers and employees do not understand the value of help Meanwhile, employers know many are not prepared for retirement. This is a correct assessment! National Norms for Financial Well-Being on IFDFW Scale© (Mean=5.7; SD=2.4) (1-4: 30%) (5-6: 28%) (7-10: 42%) (1-4: 30%) (5-6: 28%) (7-10: 42%) Source: InCharge Education Foundation, National Norms on InCharge Financial Distress/Well-Being Scale© for General Adult Population. 1 Means “Overwhelming Financial Distress/Worst Financial Well-Being”; 10 Means “No Financial Distress/Excellent Financial Well-Being” ©Copyright by InCharge Education Foundation and E. Thomas Garman, 2004-2006. All rights reserved. Big Point “Financially illiterate employees do not make the best decisions for themselves or their employer” Annual Per Employee Costs of Ignoring Financial Illiteracy © Lost productivity $450a 401(k) Participation-Non/low (FICA) 0b Health care reimburse (FICA) 76c Dependent care reimburse (FICA) 382d Health care costs (poor health) 300e Traditional health plan choice 800f TOTAL $2,000+ “Employer cost for no action is $450 to $2,000+!” © E. Thomas Garman, Personal Finance Employee Education Foundation, 2006. A Holistic View of the Problem A holistic view today means the employer recognizes and deals with all aspects of an employee’s personal finances rather than focusing on exclusive portions, such as a 401(k) plan. Some Holistic Employer Considerations ERISA Sarbanes-Oxley And thinking more about doing what is morally right for employees—have them be better off financially when they leave you than when they started with you Thus, the “problem” is bigger than what first appears…AND it is an opportunity to profit Holistic Conclusions for Employers Nationally 30% of employees are dissatisfied with their personal financial situations (scores of only 1-4 that are less than middle [5-6]) By measuring employee financial well-being employers can establish useful baseline information Identifying steps to take to increase financial literacy is required Result: Both measuring and taking action on education-advice provides genuine legal protection for employers Employer’s Holistic Solution Organizational commitment to employee financial literacy…perhaps a campaign… for the bottom line Financial Literacy Recognize that financial literacy is not just about acquiring personal finance knowledge The most important part of financial literacy is to apply the knowledge by practicing good financial behaviors People cannot build assets without good financial literacy Employer’s Solutions Fix employer weak spots: choices to participate in 401(k) plan, level of deferral, participation in reimbursement plans, health care choices Communicate to ALL employees to combat financial illiteracy Provide education A N D advice Help employees consider all benefits as well as assets and resources of spouse/significant other, real estate, other investments, Social Security, future income generating resources, and healthcare costs Employer’s Outcomes Documented efforts provide substantial genuine protections under ERISA and Sarbanes/Oxley Employees are more engaged at the workplace providing improved job productivity and revenue Lower human resources administration costs Employer’s Outcomes Reduced health care costs More FICA “cash money on the table” for employers to keep A positive ROI on every dollar invested in improving employee financial well-being Questions Posed to Progressive Plan Sponsors and/or Providers Define “education” and “advice.” Where can education and advice be best used independently and in tandem? Why is this the employer’s problem and how is it in the employer’s best interest to educate and advise? Questions Posed to Progressive Plan Sponsors and/or Providers How should employers provide holistic education AND advice rather than just explain employer benefits? What results can a powerful program be expected to generate? Footnotes a See research and press releases at www.ethomasgarman.net b $1,200 contribution to 401(k) has no FICA implications c $1,000 contribution to health reimbursement plan ($1,000 X 0.0765) d $5,000 contribution to child care reimbursement plan ($5,000 X 0.0765) e Very conservative estimate; research underway f Employee chooses higher-cost employer health plan Contact Information E. Thomas Garman, Author, Advisor and Distinguished Fellow; Professor Emeritus and Fellow, Virginia Tech University; 9402 SE 174th Loop, Summerfield, FL 34491; Tele/Fax: 352-347-1345; E-mail: ethomasgarman@yahoo.com; Web: www.ethomasgarman.net Scott Coopersmith, Vice President, Diversified Investment Advisors, Tele: 914-697-8588; E-mail: coopers@divinvest.com; Web: www.divinvest.com Kelly Mullin, Vice President, Merrill Lynch, 1400 Merrill Lynch Drive, Pennington, NJ 08534; Tele: 609-274-6207; E-mail: kelly_mullin@ml.com; Web: www.ml.com Grant Slade, Vice President of Marketing and Business Development, Myfinancialadvice.com, 3005 Center Green Drive, Ste. 115, Boulder, CO 80301; Tele: 720-942-0910; E-mail: grant@slade.net; Web: www.myfinancialadvice.com Daryl Thompson, Independent Consultant, The EDSA Group, One Oak Square, 8280 YMCA Plaza Drive, #4, Baton Rouge, LA 70810; Tele: 800-942-2777; E-mail: dthompson@theedsagroup.com; Web: www.theedsagroup.com");sQ1[66]=new Array("http://www.personalfinancefoundation.org/speeches/National-Norming-Data-for-Financial-Well-Being-and-Financial-Distress.ppt","National Norming Data for Financial Well-Being and Financial Distress and the InCharge Financial Distress Scale ","","National Norming Data for Financial Well-Being and Financial Distress Benoit Sorhaindo, InCharge Institute of America Jinhee Kim, University of Maryland Barbara O’Neill, Rutgers University Aimee D. Prawitz, Northern Illinois University E. Thomas Garman, Virginia Tech University Presented on November 17, 2005 in Scottsdale, Arizona the 22nd Annual Conference of the Association for Financial Counseling and Planning Education The leaders at the InCharge Education Foundation believe that anyone’s efforts to improve personal financial well-being and/or reduce financial distress have to be validly and reliability measured before attempting to pronounce that the information, education, counseling, advice, or other intervention "worked." The IFDFW has been developed to be one such measure. Organization of Presentation Introduction/Explanation Need for a financial distress/ financial well-being scale Purposes of the study Literature review Methodology Results Conclusions National norms Closing observations Two IFDFW Subscales Suggested uses of the IFDFW scale Preface Ex ante Need exists for FDFW scale Nearly 20 years in the making Built on several conceptual models Derived from 58 descriptive concepts Three-phase national Delphi study of personal finance experts’ rankings 20+ published academic studies Six national InCharge research studies including three national norming data collections Preface (cont’d) Ex post Each question met 12 validity and reliability criteria Scale selection and each anchor term met 5 criteria Strong statistical findings (0.956 Cronbach Alpha) IFDFW scale has predictive validity for six variables including health, job outcomes, and family relationships Need for a Financial Distress/ Financial Well-Being Scale Key deterrent to psychological well-being is economic distress Growing interest in financial education in USA to improve knowledge and behaviors Limited evidence, often anecdotal, shows that some interventions decrease financial distress and improve financial well-being Accurate and reliable subjective measures of financial distress and financial well-being do not exist If measure existed, levels can be assessed before and after purposeful interventions Purposes of the Study To create an InCharge Financial Distress/Financial Well-Being scale To report national norms of financial distress/financial well-being using the IFDFW Literature Review Conceptual models of overall well-being Overall well-being and personal finances Financial strain Conceptual models of financial well-being Financial well-being and financial behaviors Objective measures of financial well-being Subjective measures of financial well-being Financial distress Literature Review Financial distress and health Financial distress and job outcomes Levels of financial satisfaction, dissatisfaction and happiness Levels of financial distress and over-indebtedness Financial distress and personal bankruptcy Financial distress and credit counseling Methodology History of scale development (Cantril – NIFPEE –InCharge) Six data collections 2000 Panel Study of Financially Distressed 2001 Follow-up Study of Financially Distressed 18 Months Later 2003 Large Panel Study of Financially Distressed 2004 Omnibus Telephone Survey of the General Population 2004 Mail Survey of the General Population 2004 Mail Survey of Initially Financially Distressed Adults Beta Version of IFDFW Scale More than a dozen steps to develop the IFDFW Methodology Review of Over 10 Conceptual Models of Overall Well-being/Quality of Life Andrews & Withey Andrews & Withey Campbell Campbell, Converse & Rodgers Cantril Davis Diener Festiger Frisch, Cornell, Villanueva, & Retzlaff Frisch Olson, McCubbin, Barnes, Larsen, Muxen, & Wilson Methodology Review of Over 30 Conceptual Frameworks and Related Academic Research Studies Beutler & Mason Davis & Helmick Davis & Schumm Deacon & Firebaugh Festinger Fitzsimmons Hira, Bauer & Hafstrom Foster & Metsen Garman Godwin & Carroll Godwin Shinn Strumpel Wilhelm, Iams & Rudd Varcoe & Fridrich, Walson & Fitzsimmons Williams Williams Williams Winter & Morris Hafstrom Hafstrom & Dunsing Hira Jeries & Allen Joo Kim Lawrence, Carter & Verma Lown & Cook Porter Porter & Garman Prochaska-Cue Methodology Review of Over 10 General Population Surveys on Financial Stress/Financial Well-Being Caravan Saray (2004) Gallup (2004) ComPsych (2004) Putnam Investments (2004) Thrivent (2004) AARP (2004) Principal Financial (2004) American Express (2004) MetLife (2004) CIGNA (2004) Roper (2003) Methodology List Relevant Personal Finance Concepts, Attributes and Objects Over 50 concepts were judged relevant to aspects, conditions, or dimensions of personal financial distress and financial well-being Solicited suggestions from more than 50 personal finance college professors and more than 40 personal finance experts in business Methodology List Evolved to 58 Personal Finance Concepts that Describe Aspects of FDFW Concepts are illustrations of certain salient life experiences, behaviors, concerns, perceptions, and personal judgments regarding the common personal finance topics of money, credit, and economic resources Methodology Judge Each Concept Against Three Criteria Concept and its anchor terms describe distinct aspects of FDFW Likelihood that concept would occur in a substantive proportion of the population Concept would occur with adults whether or not they utilized credit cards and installment loans/leases Methodology 20 Concepts (1-10 of 20 Alphabetized Below) Ability to handle $1,000 financial emergency Ability to manage money Assessment of quality of personal financial behaviors Availability of savings to pay for 3 months’ living expenses Availability of money to go out for entertainment Availability of money to pay for minor emergency Confidence about a plan to