Engaging Consumers to Help Them Achieve Financial Freedom
Jul 8, 2020
As Americans celebrated their Independence Day this past weekend, amid closures and economic shutdowns, many have been reminded that they have not yet gained freedom when it comes to their finances. But what does financial freedom mean? Chances are if you ask five different people, you’ll get five different answers. To one person it could mean having enough money saved to retire, to another it could mean no longer living paycheck to paycheck. No matter how a person answers this question one thing rings true – financial freedom means freedom from stress and worry about money. So how do we help our employees, constituents, and consumers get there?
Last year, Forbes released their 8 Levels of Financial Freedom, defining the different goals individuals might be working towards. These levels include:
1. Not Living Paycheck to Paycheck
2. Enough Money to Quit Your Job (for a bit)
3. Enough to be Financially Happy and Still Save
4. Freedom of Time
5. Enough for a Basic Retirement
6. Enough to Actually Retire Well
7. Enough for a Dream Retirement
8. More than You can Ever Spend.
While reaching the seventh level (or ideally eighth) is something everyone would like, the stark reality is that 78% of Americans are still living paycheck to paycheck (CareerBuilder) and 53% could not afford basic living expenses if they lost their job (Pew Research Center).
Though most Americans fall into these two categories, their current situations and end goals are not the same. Because everyone is unique, the way that we engage each individual and help them achieve their goals must be as well. That is why a prescriptive, one-size-fits-all approach to financial wellness does not work.
To help individuals achieve financial freedom organizations must:
1. Understand the needs and goals of individuals by letting them tell their story
2. Provide personalized, action-driven financial wellness plans
3. Connect individuals to the relevant resources, tools, and services that will help them reach their goals
4. Have data to quantify the impact of their efforts and inform them how to best move forward
This personalized, user-driven approach to financial wellness is the model that LifeCents was founded upon. The LifeCents platform delivers a scalable solution to personalized financial guidance by engaging and letting users to tell their personal financial story. LifeCents also connects people to the right resources at the right time, allowing them to set action-driven goals and delivering meaningful feedback by rewarding progress and performance. In the process, organizations benefit from offering LifeCents through enhanced employee and consumer engagement and best-in-class data analytics and insights.
For more information, or for a demo of LifeCents, contact us today.