By Dr. Marie Gould Harper
Program Director, Management
During the past couple of years, I have had the opportunity to speak to some young people. I was very impressed with how frugal they were and supported their ideology of staying debt-free. I enjoyed my conversations with these young professionals as they shared stories outlining how they arrived at their value system.
Many of these young people were the products of over-extended homes in which both parents worked to support their “habits.” Some parents felt guilty for working long hours. To replace the lack of quality time, they compensated by giving their children everything they wanted. Some of these young people learned a lesson by watching their parents go into debt to obtain material goods and live a life above their means.
More Consumers Burdened with Debt
Today, I read a story that was interesting, but not surprising. Danielle DiMartino Booth, a financial expert from Dallas, Texas, wrote an article called “The Labor Market: The End of the Innocence?” Some of the statements that caught my attention included:
- There appears to be a trend indicating that households are spending more than they are earning.
- Households aren’t financially overstretched yet, but they’re getting there.
- Households are really happy about the Trump win, and they’re showing it by spending beyond their means.
If these statements are true, what have we learned?
History shows that some people have short memories or they are anticipating that things are going to go back to the “good old days.” Some believed the “good old days” included times when credit was abundant, so people could have instant gratification (i.e. the microwave age) by buying now and paying later. Individuals are living with the belief that tomorrow will take care of itself and enjoy living in the moment.
Suze Orman, a well-known financial adviser, has a TV show that helps people become debt-free. One day, I was watching her show while she assisted a young woman with a proposed plan on how to get out of debt. After Orman outlined the type of program that would be the best approach to becoming debt-free, I saw the anguish that came over the young woman’s face.
She came to the show looking for a solution, but was not willing to make any sacrifices. She preferred to be oppressed and controlled by debt versus going “cold turkey” to minimize and eliminate what she owed. She refused to adopt the proposed plan.
The Correlation between Consumer Behavior and Workplace Stress
When people overextend themselves, the stress of managing personal finances slips into an employee’s work environment. Stress over how to pay bills could influence a worker’s job performance, which in turn affects the organization.
However, one could argue that the stress of a work environment leads to mental stress, which may provoke binge shopping to cope with the demands of a job. In my opinion, you have both scenarios. What should we do?
Employee Assistance Programs Help Relieve Stress, Increase Productivity
An Employee Assistance Program is important for relieving employee stress, especially now as employees recover from overextending themselves during the holiday season. The New Year brings everyone back to reality, and families attempt to figure out how to pay the bills.
Corporate awareness drives are useful for promoting healthy finances and helping stressed employees. We can do this in several ways:
- Partnering with the Employee Assistance Program in creating an outreach campaign for employees to obtain assistance with getting on track. Meet people where they are by creating diverse initiatives that fit a variety of personal finance needs (i.e. how to build a budget, deciding when to purchase – needs versus wants).
- Sponsoring events during the workday that allow employees to discuss and communicate on the topic without getting personal. Make it an awareness event.
- Encouraging evening events so that employees can include family members in the awareness/counseling process. Sometimes, an employee might experience financial problems as the result of a family member’s behavior.
- Supporting employee involvement in communicating the importance of personal finances in the community. Sometimes, people can solve their problems by helping someone else in the same situation.
Danielle Booth’s article paints a picture that some people might slip back into bad financial habits. However, we can attempt to turn the situation around by sponsoring employee awareness programs focused on personal finances. Let’s promote healthy budgets to our workforce, so employees will be encouraged to live within their means.
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