Even in the best of times, financial concerns can seep into every waking moment of a person’s life.
“Am I saving enough for a comfortable retirement?” “Will I be able to pay my bills this month?” “What if something unexpected happens?” “Will I get hit with a huge tax bill?” “How do I maximize my refund?” “Have I made safe investments?” “Will I lose it all?”
And, for many people, these do not feel like the best of times. Nearly two-thirds of Americans don’t think their finances will improve this year, and three-quarters are anxious about their financial situation.
This is where you come in.
Related: Five Financial Wellness Ideas for Your Employee Wellness Program. Read it here →
As an HR professional, you’re not a financial advisor, but you are deeply interested in supporting engagement, focus, and morale among your company’s employees. Helping employees keep their distracting financial anxiety at bay is a vital part of that—and one reason so many employers are investing in financial wellness programs.
(When employees feel good about their finances, they are statistically happier—84% vs. 55%—and more engaged—78% vs. 53%—than their financially stressed counterparts.
There are many ways to promote financial wellness in the workplace, such as offering free financial counseling or access to budgeting apps. But don’t overlook the power of a quick (emphasis on the quick) email to clear up confusion around financial issues.
Here are a few email templates—yours for the taking and adapting—designed to improve employee financial wellness by answering three common questions about money, savings, and taxes:
- Should I consider a Roth 401(k)?
- How can I make my paycheck go further?
- How and when should I spend my HSA/FSA funds?
Financial Wellness Email Template #1: Traditional vs. Roth Accounts
About 88% of 401(k) retirement savings plans now offer Roth options, a huge increase from just a decade ago. Yet, significant confusion remains around when it makes sense to invest in a traditional 401(k) account and when to save with a Roth 401(k). This free email template for employees illustrates the difference.
Subject line: Roth vs. Traditional 401(k): Which Is Right for You?
Dear ,
At , we’re proud to offer two ways to help employees save for retirement: a traditional 401(k) plan and a Roth 401(k) option. But we’ve been getting a lot of questions lately about how these two savings plans differ. So, we thought we’d send this quick email to help you choose the right option for you and your family.
(And please feel free to reach out to the HR team if you have any questions.)
Similarities: Both a traditional and Roth 401(k) allow you to contribute funds directly to an investment account from each paycheck. Thanks to your contributions, matching funds from us, and investment gains, your account will grow over the years and be available to use when you retire.
Differences: The key difference between a traditional and Roth 401(k) is when you’re taxed.
With a traditional 401(k), contributions are tax deductible, which reduces your adjusted gross income on your taxes. When you retire and begin making withdrawals, distributions are taxed as regular income.
A Roth 401(k) is just the opposite. Contributions are made after taxes, with no impact on your adjusted gross income. However, qualified distributions after retirement are not taxed.
(There are a few more differences, which you can read about here, but those are the most important ones.)
When to choose a Roth 401(k): It all comes down to whether you feel it’s better to pay taxes: now or later. If you expect to be in a higher tax bracket when you reach retirement age (younger employees, this is you), you might want to pay the lower rate now. Consult a financial advisor if you’re unsure.
Keep in mind: As long as you don’t exceed the federal government’s 401(k) contribution limit (currently $23,000 per year), you may invest in both plan types.
Hope that helps! Again, please let us know if you have any questions about retirement savings.
Financial Wellness Email Template #2: Three Budgeting Methods
A great deal of financial anxiety can be managed through the simple act of budgeting. Unfortunately, planning and sticking to a budget is not something most people learn in school. We created the following free email template to help you help your employees gain control of their spending.
Subject line: Stretch Your Paycheck With These 3 Budgeting Methods
Dear ,
Are you ending every month with the same question: “Where did it all go?” Between the high cost of housing and necessities, debt to pay back, and the occasional evening out (which you deserve!), it can sometimes seem like the money just evaporates.
Keeping and sticking to a budget can help erase some of your uncertainty around spending and ensure you have money left over each month to work towards your financial goals—such as saving for retirement, paying off your student loans, or buying a house.
How to budget? It’s not that hard. Start by deciding what’s most important to you—saving, debt repayment, reducing expenses—and then choosing a budgeting method to fit your goals and priorities.
Three expert-approved budgeting strategies are:
- The envelope method
Just what it sounds like. Designate envelopes (real, paper envelopes) for particular budget categories, such as groceries and bills. Fill the envelopes with the appropriate amount of cash (real paper money). When they run out, they run out.
(You can also do this virtually using a budgeting app.)
The envelope method is an excellent way to stay disciplined with your spending and can help you visualize your resources and expenditures.
- The 50/30/20 system
This system is great for people who are new to budgeting. It’s a general rule of thumb for spending your money.
Break your regular expenses into three categories: necessities, wants, and savings/debt repayment. Set aside 50% of your monthly income for necessities, 40% for wants, and 20% for savings/debt repayment.
These percentages work for most people, but if you find that 20% is not enough to cover your debt and savings, you can adjust the other categories accordingly.
- The pay-yourself-first approach
By “yourself,” we mean your future self. This approach prioritizes savings and debt repayment. Set aside a certain amount for savings (such as building an emergency fund) every month before deciding how to spend the rest of your income.
Here are a couple of articles to read for more detailed budgeting advice. Please don’t hesitate to get in touch with your HR rep if you have any questions about making the most of your paycheck.
Financial Wellness Email Template #3: End-of-Year HSA/FSA Spending Reminders
The typical employee with a flexible spending account (FSA) loses between $339 and $408 per year in contributions by not spending their pre-tax dollars before the deadline. This free email template is a quick reminder to spend unused FSA funds before it’s too late.
Subject line: The FSA Spending Deadline Is Near; Use It or Lose It
Dear ,
If you’ve contributed to your flexible spending account (FSA) this year, be aware that your last chance to use that money is . Your balance will expire after that.
Just a little refresher: FSA funds can be used for a wide range of qualified healthcare expenses, including:
- Deductibles and copays
- OTC medication
- Eyeglasses and contacts
- Dental care
- Birth control
- Menstrual-care products
- Sunscreen
- Diabetic supplies
- First-aid products
And more! Check with our FSA vendor for a complete list. You can use your FSA debit card anywhere debit payments are accepted or file for reimbursement for expenses you’ve already incurred.
For those of you with a health savings account (HSA) tied to a high-deductible health plan (HDHP), your contributions will never expire. If you’re unsure whether you have an FSA or HSA, or you don’t know how to check your balance, please reach out to an HR team member.
We would be happy to help!