Early in my career in the financial services industry, I had a moment of clarity that shaped my purpose-driven work. As a loan officer, I frequently made difficult calls to applicants whose mortgage applications were declined due to high debt-to-income ratios and low credit scores. These calls were heartbreaking—I was the bearer of bad news, telling people they couldn’t purchase their dream home. At the time, there was little I could offer them except a suggestion to check back in the future.
That changed when I started coaching my clients. Instead of leaving them with a rejection, I began guiding them on actionable steps to improve their financial health. Together, we worked on strategies to reduce debt, improve credit scores, and develop smarter borrowing habits. Watching my clients transform their financial situations and achieve their dreams became my passion. Experiences like these ignited my commitment to helping others understand what financial well-being truly means and how to achieve it. This realization has become the cornerstone of my work as a thought leader and coach.
Starting with why: The foundation of financial wellness programs
In any organization, the journey to building a financial wellness program begins with answering the question: Why? The purpose behind such a program matters just as much as its design. Without a clear mission, a financial wellness program risks becoming a checkbox item instead of a transformative initiative. Aligning the program’s goals with the organization’s mission, vision, and purpose ensures that it becomes an integral part of its identity and culture.
For credit unions, this alignment is particularly important. The mission to serve members’ financial well-being is often central to a credit union’s purpose. Expanding that mission to include financial wellness programs deepens member relationships and extends benefits to employees, enhancing their financial resilience. Starting with the “why” creates the foundation for a program designed to deliver lasting impact.
What is financial wellness?
Financial wellness, as defined by the Financial Health Network, remains a solid foundation for understanding financial health. It revolves around saving, spending, borrowing, and planning effectively. However, these core principles take on unique dimensions for younger generations like Gen Z and gig workers, whose financial landscapes differ significantly from traditional norms.
- Saving: For younger age groups, saving often means micro-saving through apps that round up purchases or allocate tips and gig income to short-term goals. Building an emergency fund might start with a target as modest as $500, reflecting their need for flexibility and immediacy.
- Spending: Managing expenses for gig workers often involves navigating fluctuating income streams. Budgeting tools that synchronize with irregular pay cycles and real-time tracking apps become essential to staying within means while covering essentials like healthcare or transportation.
- Borrowing: For Gen Z, borrowing responsibly often includes tackling student loans or accessing credit for the first time. Innovative platforms that simplify credit building and educate on responsible borrowing can be pivotal in avoiding debt traps.
- Planning: Financial planning for gig workers and younger generations includes managing multiple income sources, setting incremental financial goals, and leveraging technology for automation—whether investing spare change or using financial advisors powered by AI.
A comprehensive financial wellness program that addresses these evolving needs empowers individuals to navigate their current realities and build long-term resilience and financial growth. Tailoring strategies to meet their unique challenges ensures inclusivity and innovation in financial wellness.
Mapping the program design
A strong financial wellness program begins with clearly understanding what you want to achieve and whom you wish to serve. Is the program exclusively for members, or does it also address employees’ financial health? The answer to this question shapes the program’s scope and resources.
Next, consider the program’s structure and key components. What types of education, tools, and services will be included? Workshops, webinars, and content offerings are essential, but they are not enough. For participants to achieve meaningful progress, they need opportunities to apply what they’ve learned, along with coaching and accountability to sustain motivation and guide them through their financial milestones.
Building blocks for success
Developing a financial wellness program involves careful planning and resource allocation. Key considerations include:
- Purpose: Define the program’s mission and what success looks like for members and employees.
- Education vs. application: Ensure participants can apply knowledge through actionable tools and coaching.
- Coaching: Invest in trained financial coaches who can provide personalized guidance and accountability by applying evidence-based methods.
- Technology: Use platforms that facilitate data collection and track progress during coaching sessions.
- Sustainability: Evaluate whether your organization has the capacity to manage the program internally or if partnerships are needed.
- Partnerships: Consider collaborating with experienced providers to supplement resources and expertise.
Evaluating your program
Do you already have a financial wellness program? If so, it’s time to evaluate how it’s serving your organization, employees, members, and the broader community. Start by assessing the following:
- Alignment: Does the program align with your organization’s mission and goals?
- Impact: Are the intended outcomes being achieved? Are employees and members reducing debt, improving credit scores, and saving more?
- Engagement: Are participants actively engaged and motivated to continue?
Challenges others have faced when evaluating financial wellness programs include low participation rates, difficulty measuring outcomes, and limited support from leadership. To overcome these challenges:
- Secure support from the top down: Leadership must champion the program to ensure it receives the necessary resources and visibility.
- Create a financial wellness committee: Involve employees from various departments to provide input, promote the program, and ensure it meets diverse needs.
- Use messaging strategically: Communicate the program’s value consistently and clearly, emphasizing how it benefits individuals and the organization as a whole.
From outputs to outcomes
To evaluate a financial wellness program’s success, focus on outcomes rather than outputs. Outputs, such as the number of workshops delivered or attendees reached, provide insight into the program’s scale but do not measure its impact. Outcomes, on the other hand, reflect the program’s ability to create lasting change. Examples of meaningful outcomes include:
- Reduced debt levels
- Increased savings
- Improved credit scores
- Lower financial stress
- Overall financial health improvement
Designing a program that prioritizes these outcomes requires setting clear goals and implementing measurement tools to track progress. Remember, measurable impact is achieved through programs that drive behavioral change and improve financial well-being over time.
The case for financial coaching
Evidence consistently shows that financial coaching creates meaningful impact in clients’ lives. Coaching helps individuals reduce debt, build savings, improve credit scores, and achieve financial milestones. These changes ripple outward, strengthening communities and contributing to long-term financial resilience.
For credit unions, the benefits extend even further. Enhancing members’ and employees’ financial well-being can:
- Increase member engagement and loyalty
- Reduce employee financial stress, boosting productivity and retention
- Strengthen the credit union’s reputation as a trusted financial partner
- Drive positive impacts in the communities you serve
By investing in a financial wellness program, credit unions have the opportunity to fulfill their mission on a deeper level while driving measurable outcomes for members, employees, and the organization as a whole. Let’s continue building programs that create lasting change—because financial wellness is more than a program; it’s a promise to improve lives and empower futures.
