Financial wellbeing explained: and how employers can actually make a difference

Financial wellbeing is one of the most talked-about yet least understood concepts in the workplace today. It gets mentioned in employee surveys, wellbeing strategies, and benefits brochures—but when it comes down to it, what does financial wellbeing really mean? And what can employers genuinely do to make a difference?

This article breaks down the core of financial wellbeing, debunks some common misconceptions, and explores meaningful ways employers can support their teams in the face of rising financial stress.

What really is financial wellbeing?

Financial wellbeing goes beyond how much someone earns or how much they have. Having a high salary doesn’t stop someone from feeling financial stress or having difficult money challenges. And a low income or small bank balance doesn’t prevent someone from improving their financial wellness. 

Financial wellbeing means feeling secure and in control of your financial situation, in a way that gives you peace of mind and confidence in making informed financial decisions, both day-to-day and for the future.

Put simply, it means:

• Covering everyday expenses without anxiety

• Feeling confident when managing money

• Having a buffer for unexpected costs

• Making progress towards financial goals, no matter how small

• Having the mental space to enjoy life, not just surviving

Financial wellbeing is on a continuum and it is fluid. It can change over time and can be impacted by different life events. Many of these events can be out of our control, like an unexpected household emergency or job loss, or an illness or relationship breakdown. Being prepared for hard times financially is a significant part of good financial wellbeing, but we cannot always blame ourselves or others if things go wrong. 

The actions people need to take to improve their financial wellbeing will be different for everyone. From being brave enough to check a bank balance, or negotiate a household bill, or open an investment account, or set up workplace pension contributions, or complete an online benefits calculator, or create financial goals with a partner, or review a budget for a period of paternity leave. The list goes on… and depends hugely on a person’s financial confidence, situation, and life context. 

When someone has good financial wellbeing, they’re more likely to be present at work, contribute creatively, and engage with others. Without it, they may be distracted, burnt out, avoidant or hiding things, or juggling extra jobs just to get by.

The misconception about financial wellbeing

One of the biggest misconceptions is that financial wellbeing simply means financial education. The logic goes: if we teach people how to budget, they’ll be fine. But financial stress isn’t just caused by a lack of knowledge: it’s often caused by systemic challenges like low pay, unpredictable hours, debt, caring responsibilities, or simply the high cost of living.

You can’t workshop your way out of poverty wages, an unexpected emergency or high childcare costs.

That’s why many employees can feel frustrated when offered “wellbeing perks” that don’t address the root of their financial worries. Telling someone who’s behind on their rent to download a budgeting app doesn’t exactly move the needle or acknowledge the real challenges they are up against.

Meaningful financial wellbeing support needs to go deeper and feel personal. It needs to recognise the full picture of someone’s financial situation, including the emotional weight of money worries, and the workplace factors that may be contributing to them. 

Why it matters for employers

In reality, financial stress shows up at work every single day. It impacts:

• Productivity: employees struggling with money are more likely to be distracted, tired, or disengaged. Or employees hyper-perform to disguise money worries which become unsustainable in the long-term.

• Absenteeism: financial stress can lead to mental health problems, sleep issues, illness or needing time off to deal with crises.

• Retention: people may leave jobs for better pay, more stable hours, or benefits and a workplace culture that feels more supportive.

• Company culture: when financial conversations are taboo, employees can feel isolated and unsupported.

Supporting financial wellbeing isn't just a ‘nice to have’. It’s a strategic move that helps build a healthier, more sustainable workplace. And in a cost-of-living crisis, it’s quickly becoming a necessity.

What can employers actually do?

You don’t need an unlimited budget to support your employees’ financial wellbeing. In fact, some of the most impactful actions are low-cost or free. They’re about culture, communication, connection, and relevance, rather than expensive benefit schemes across the board.

We know that for many organisations, especially in the current climate, budgets are tight. Headcounts are under pressure, and wellbeing initiatives are being scrutinised more than ever. But that’s exactly why a smart approach to financial wellbeing matters. It’s not about spending more: it’s about spending wisely, and building systems of support that genuinely make a difference.

Here are some practical ways to start:

1. Start with listening

Run anonymous surveys, create safe feedback channels, or hold listening sessions. What are your employees actually struggling with financially? Is it travel costs, childcare, debt, or variable income? The solutions you offer will be most effective when rooted in real need.

2. Tackle the basics first

Fair, timely, and predictable pay goes a long way. If you can’t offer pay increases, are there ways to improve payment cycles or shift predictability? Even small adjustments, like ensuring accurate payslips or reducing payroll errors, can reduce stress significantly.

3. Train Money First Aiders

This is a cost-effective way to create internal support without overstepping professional boundaries. Money First Aiders aren’t financial advisors, they’re trained to listen, spot signs of financial stress, and signpost to help. It creates a peer-to-peer safety net, often at a fraction of the cost of traditional benefits.

4. Make the most of what you already offer

Often, organisations already offer support that people either don’t know about or don’t feel confident using. Salary sacrifice schemes, travel loans, employee assistance programmes (EAPs) and more, all of these can be framed through a financial wellbeing lens. It just takes effective communication, accessibility and consistency.

5. Build a culture of openness

Shame and stigma are major barriers to seeking help with money worries, so it’s vital to create a workplace where talking about money is okay.

Use internal comms, manager briefings and anonymised case studies, to normalise financial conversations. Real anonymised stories of support through your EAP or Money First Aiders can help others feel less alone.

Encourage leaders to speak openly about financial resilience and the importance of financial wellbeing. When openness starts at the top, it builds trust across the organisation.

The role of managers

Managers often want to support their teams but don’t feel equipped to have conversations about money. That’s why manager training is key.

Give them:

• The confidence to ask gentle, non-intrusive questions with empathy and without judgement

• The tools to spot signs of financial stress

• Clear referral pathways (like to your Money First Aider)

• Reassurance about boundaries: managers shouldn’t be giving financial advice, but they can open the door to support

The role of Employee Resource Groups (ERGs)

Employee Resource Groups (ERGs) can also support financial wellbeing by creating safe spaces for open conversations about money and by offering tailored, peer support based on the specific financial challenges their members face. They can also advocate for inclusive policies and collaborate with HR and wellbeing teams to drive meaningful change across the organisation.

Final thoughts: financial wellbeing in the workplace isn’t about perks… it’s about people

Financial wellbeing isn’t a one-size-fits-all checkbox on a benefits package. It’s about meeting your people where they are, removing shame from money conversations, and taking a compassionate, structural approach to financial stress.

In uncertain times, employees want to know their employer has their back, with words, understanding and real, tangible support.

Whether that’s reviewing your pay structure, introducing Money First Aiders, or creating a culture where talking about money isn’t taboo: these efforts can have a profound impact on someone’s daily life.

Because when people feel financially well, they show up differently. They’re more present, more engaged, and more able to grow.

Interested in training Money First Aiders for your team? Our course helps organisations build financial resilience in the workplace—one conversation at a time. Find out more at MoneyFirstAid.org.uk.