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The Top Reasons For Employees Suffering Financial Stress

Employee financial stress is not something they can leave at home and consider separate from their workplace. Financial stress is like any stress and stays with us at all times, affecting all aspects of our lives. When pressures at work combines with the stress that is already present, the result isn't good for the employee or the company. Since jobs and salary do play a part in an employee's financial worries, it's common for that stress to manifest and come to the surface while on the job. An employee may feel unappreciated or have doubts as to whether their time is being well spent.

These are the top reasons to examine if your employee is experiencing financial stress.

  • Living In A One Income Household ~

In our society, surviving on one income is difficult, especially with children or other added expenses involved. Unfortunately the only way to remedy this is to add income. Taking on a second job may actually add stress, even though it means more money in the household. Another option is taking on a roommate in the home or perhaps rethinking other options for existing adults in the home.

When a couple has chosen for one parent to stay in the home while another works, this is often a personal decision that extends beyond financial needs. Putting children in daycare also subtracts from any income that might result in the second parent working outside of the home. There are home employment opportunities, but that involves a lot of research to see that an opportunity is legitimate and worthwhile.

  • Spending Beyond Financial Means ~

This is probably the most common widespread problem among many struggling with financial stress, regardless of other circumstances. Something exists in our society that causes us to want more and more, whether we can afford it or not. When consumers don't have the money, retailers and banks are more than happy to tempt them with credit accounts and high-interest loans that make anything seem attainable. That need to take home that shiny new something today instead of saving to buy it outright later, adds up to heavy debt quickly. This practice leads to high recurring payments that last for years and continue the pattern of financial stress.

  • Unusual Elder or Child Care Responsibilities ~

When we have children, we prepare and adjust as their needs evolve and change. When a previously independent child moves back home or a child is unexpectedly adopted or taken in a time of need, these are expenses that come on quickly and without relief. The same is true when an adult child is suddenly responsible for their elderly or disabled parent. Again this is a situation that doesn't always have an easy solution or predictable end. Planning for these types of possibilities is not in the budget for most families.

  •  Unexpected Disaster, Death or Other Crisis ~

We can recover from some unexpected tragedies in life with insurance or some other type of social relief. Those that are not can deplete savings and salaries very quickly. The middle class, which involves primarily employed individuals, don't make enough money to dig themselves out of catastrophe and often make too much money to qualify for aid.


Financial stress is a serious matter that affects home, health, work and family relationships. Offering employees resources for smart financial planning and decision-making is something companies can do to help. It is in their best interest, since an employee's stress will have a negative affect on their performance. Obviously employers cannot just pay everyone more to make up for their financial woes, but making sure you are paying competitively and fairly will maintain morale and keep turnover low.