Most people have experienced that pit-in-the-stomach feeling that can arise when pondering money, whether it stems from budgeting challenges or saving for retirement.
Financial stress can take a big toll on people’s mental health — and workplace productivity. It’s not surprising then that 46 percent of employers in Bank of America’s 2021 Workplace Benefits Report said they offer financial wellness programs for employees.
Preston Cherry, assistant professor of finance and personal financial planning at the University of Wisconsin-Green Bay, says because people spend so much time at work, money worries can affect job performance.
“The studies show there’s stress, there’s anxiety about it. We’re not thinking about the money itself; we’re thinking about how it impacts our lives,” he says.
That’s part of what led UW-Green Bay to launch the Center for Personal Financial Planning this fall. It fosters alumni and industry partnerships as well as offering personal finance curriculum and resources for students through the Cofrin School of Business personal financial planning program. Last spring, the university received approval from the Certified Financial Planner Board of Standards, Inc. to offer a financial planning education program.
Those pursuing the credential can hold any undergraduate degree, and after they fulfill the education requirement, they can sit for the CFP exam. Through UW-Green Bay’s program, students can begin working with an employer, gaining experience that will help prepare them for the exam, Cherry says.
The center also provides service to the community and stakeholders, both internal and external. That includes offering one-on-one peer counseling from students in the school’s personal finance program.
“This helps (students in the program) build up their soft skills but also provides one-on-one financial counseling to students on campus,” says Cherry, who also runs his own financial planning business, Concurrent.
Because a university is a pillar of the community, it’s a natural for UW-Green Bay to serve as a leader in educating both students and the community about personal finance, Cherry says. Outside of the school, students in the program provide fundamental personal finance education to community organizations and high schools.
UW-Green Bay will also soon open the Willie D. Davis Finance & Investment Laboratory. The Green Bay Packers contributed $250,000 toward the project in honor of the late Packers player and Pro Football Hall of Famer. The center is slated to open in the spring and will offer student-managed investment funds, financial trading and investment laboratories.
Allaying anxiety
Financial institutions also play a vital role in educating their members and the wider community. Dave Thone, senior vice president of member solutions at Fox Communities Credit Union, says the credit union places a big emphasis on financial wellness and education.
Fox Communities does a monthly radio show where experts discuss financial topics such as fraud prevention, budgeting, credit and loans. In addition, the credit union employs a member educator, who also offers classroom presentations at schools.
Members can take advantage of Balance, a free online support tool that offers self-service modules and the ability to reach out directly to debt counselors.
Fox Communities’ Savvy Money online tool allows members to enter their expenses into a budget and compare their habits with industry averages. Its KA-POW Kids Club is intended for kids 12 and younger and teaches children about money through games.
Beyond those programs, Fox Communities offers investment services through certified investment advisers who can guide members through goals like saving for a big expense or planning for retirement.
Thone says he wants members to know they can turn to Fox Communities for help. That includes educating staff and helping them identify people who may be struggling with money. The Credit Union National Association offers a certified financial counselor program, and 19 team members have undergone the training, with another 25 now enrolled.
“The studies show there’s stress, there’s anxiety about (money). We’re not thinking about the money itself; we’re thinking about how it impacts our lives.”
— Preston Cherry, assistant professor of finance and personal financial planning, University of Wisconsin-Green Bay
“We’re really trying to listen to their story. We try to dig in deeper to understand those issues. Don’t be afraid to call. We’re here to help you through it,” Thone says.
Jim Myers, senior participant services and education officer, company retirement plans for First Business Bank, agrees that money is a huge stressor for people, and in his role, he meets with the bank’s 401(k) clients one on one.
People’s top concerns include retirement and worries about whether they’re saving enough.
“As an industry, we say if you can save about 10 to 15 percent, you would be considered a healthy saver,” Myers says, adding that a company’s retirement contributions to employees gets factored into that.
One of Myers’ top pieces of advice to people is to take advantage of employer-based plan programs and do the match, at a minimum. “That’s truly free money when you take advantage of that company match. There’s no other investment company, insurance company, mutual fund company, bank, credit union that will give you that type of a return.”
Myers says his work puts people in a better position and helps them feel more confident and less stressed, which leads to greater success and well-being. “The more we know about it, the more educated we are on it, the less of a stress it has to be for us.”
Advance child tax credit could affect tax returns, bills
The federal government’s advance child care tax credit launched in July. Jason Feltz, tax principal for CLA, says it’s simply an advance of a tax credit that would otherwise be claimed when individuals file their tax returns. The advance monthly payment is $250 per qualifying child between the ages of 6 and 17 or $300 for each child under age 6. It was intended to put money in the hands of taxpayers sooner than would otherwise be the case if taxpayers waited until they filed their 2021 tax return to claim the credit.
Many people rely on generous returns at tax time, but the advance child tax credit could affect the size of returns. “Because this is an advance payment (not an additional payment), an individual receiving the advance credit will likely either have a smaller refund or a larger tax bill when they go to file their return, as they will no longer have this credit available to offset their tax liability. An individual who receives excess child tax credit payments may need to repay to the IRS some or all of the excess payment when they file their tax return,” Feltz says.
He adds that there is an opportunity for certain individuals to qualify for repayment protection, thereby limiting the amount they may need to pay back if their income is below a certain level. Some people also chose to opt out of the tax credit.
To head off any surprises, Feltz recommends asking a tax professional to prepare an income tax projection for 2021 so individuals have time to plan for any potential impact the advance child tax credit payments may have on their tax return.
