Education Policy Commons^™

Employee Financial Wellness Programs: Tips For Employers, Sloane Wolter, Jenna Hampton Bsw, Sophia Fox-Dichter, Ellen Frank-Miller

Social Policy Institute Research

There are several types of Employee Financial Wellness Programs (EFWPs), such as workplace financial counseling, workplace credit building, and employer-sponsored small dollar loans. Each program benefits the company and its employees in different ways.

The Social Policy Institute at Washington University in St. Louis, with generous support from the W. K. Kellogg Foundation, studied the implementation of EFWPs at several diverse organizations, including a nonprofit in the Midwest and several supply chain locations of a national retailer, to understand the impact. As a result, we’ve identified four ways in which organizations can maximize the benefits of EFWPs and avoid pitfalls …

Employee Financial Wellness Programs: Promising New Benefit For Frontline Workers?, Mathieu Despard, Ellen Frank-Miller, Yingying Zeng, Sophia Fox-Dichter, Geraldine Germain, Michal Grinstein-Weiss, Meredith Covington

Social Policy Institute Research

Interest among employers is growing in Employee financial wellness programs (EFWPs), a new type of benefit to address financial stress among employees. EFWPs benefits include financial counseling, small-dollar loans, and savings programs that address employees' non-retirement financial needs. Little evidence exists concerning the availability and use of and outcomes associated with EFWPs, especially among low- and moderate-income (LMI) workers who may be in greatest need of these benefits. We present findings concerning awareness and use of EFWPs from a national survey of LMI workers (N=16,650). Availability of different EFWP benefits ranged from 11 to 15% and over a third of …

Employee Financial Wellness Programs: Tips For Providers, Jenna Hampton Bsw, Sloane Wolter, Sophia Fox-Dichter, Ellen Frank-Miller

Social Policy Institute Research

There are several types of Employee Financial Wellness Programs (EFWPs), such as workplace financial counseling, workplace credit building, and employer-sponsored small dollar loans. Each program benefits the company and its employees in different ways.

The Social Policy Institute at Washington University in St. Louis, with generous support from the W. K. Kellogg Foundation, studied the implementation of EFWPs at several diverse organizations, including a nonprofit in the Midwest and several supply chain locations of a national retailer, to understand the impact. As a result, we’ve identified five ways in which providers can maximize the benefits of EFWPs and avoid pitfalls …

Tax-Time Saving And The Earned Income Tax Credit: Results From Online Field And Survey Experiments, Mathieu Despard, Michal Grinstein-Weiss, Stephen Roll, Bradley Hardy, Dana Perantie, Jane Oliphant

Social Policy Institute Research

Tax refunds are an opportunity for Earned Income Tax Credit (EITC) recipients to build emergency savings. Randomly assigned behavioral interventions in 2015 and 2016 have statistically significant impacts on refund saving take-up and amounts among EITC recipients who filed their taxes online. From a survey experiment, we also find that EITC recipients have a 49 percent and 59 percent increased likelihood of deferring 20 percent of their refunds for six months when hypothetically offered 25 and 50 percent savings matches (p < .001), respectively. These findings can inform policy development related to encouraging emergency saving at tax time.

Financial Counseling For Front-Line Workers: A Pilot Study Of Engagement And Outcomes, Mathieu Despard, Yingying Zeng, Sophia Fox-Dichter, Ellen Frank-Miller, Michal Grinstein-Weiss

Social Policy Institute Research

Although financial counseling has been studied in community-based settings, programs offered in the workplace are understudied and yet may aid low- to moderate income employees in improving their financial situations. This study examines workers’ engagement in and associated credit outcomes from an employer-based financial counseling program in the New York City area. Findings suggest that participants engaged equally in services except for older and non-English speaking workers, who had lower levels of digital engagement. In-person engagement in services was minimal. Credit score improvements were modest, but greater for workers who had

scores in the lowest quartile at baseline. These credit …

Promoting Public Retirement Savings Accounts During Tax Filing: Evidence From A Field Experiment, Stephen Roll, Michal Grinstein-Weiss, Olga Kondratjeva, Sam Bufe

Social Policy Institute Research

Many U.S. households—especially those with low- to moderate-incomes (LMI)—struggle to save for retirement. To address this issue, the Department of the Treasury launched myRA, a no-fee retirement account designed primarily to help people who lacked access to employer-sponsored plans build retirement savings. In this paper, we report findings from two myRA-focused field experiments, both of which were administered to well over 100,000 LMI online tax filers before and during the 2016 tax season. The first experiment involved sending one of three different myRA-focused email messages to tax filers immediately prior to tax season, and the second experiment …

The Impact Of Tax Refund Delays On The Experience Of Hardship And Unsecured Debt, Olga Kondratjeva, Stephen Roll, Mathieu Despard, Michal Grinstein-Weiss

Social Policy Institute Research

The Earned Income Tax Credit (EITC) provides substantial financial support to low-income workers, yet around a quarter of EITC payments are estimated to be erroneous or fraudulent. Beginning in 2017, the Protecting Americans from Tax Hikes Act of 2015 requires the Internal Revenue Service to spend additional time processing early EITC claims, delaying the issuance of tax refunds. Leveraging unique data, we investigate how delayed tax refunds affected the experience of hardship and unsecured debt among EITC recipients. We find that early filers experienced increased food insecurity relative to later filers after the implementation of the refund delay.

Using Financial Tips To Guide Debt Repayment: Experimental Evidence From Low-And Moderate-Income Tax Filers, Olga Kondratjeva, Stephen Roll, Sam Bufe, Michal Grinstein-Weiss

Social Policy Institute Research

Much of the literature on household finances tends to focus on discrete or relatively objective measures like savings, debt, economic mobility, and there has been a lack of research on holistic measures of financial well-being. This gap is due in part to the absence of a common understanding of how to define and measure financial well-being; a gap that was recently addressed by the Consumer Financial Protection Bureau’s development of a financial well-being scale. However, the research on this scale is still scarce and little is known about how financial well-being evolves over time. To that end, this paper uses …

Improving The Take-Up Of Homecare Services Among Holocaust Survivors In A Jewish Charitable Organization, Olga Kondratjeva, Stephen Roll, Odelya Mantsura, Pini Miretski, Olga Statland-Vaintraub, Hannah Brumbaum, Ariel Tikotsky, Michal Grinstein-Weiss

Social Policy Institute Research

This research brief is part of a series by the Social Impact Nudgeathon initiative. This initiative incorporated insights from behavioral economics into the design and delivery of social welfare programs. Developed through a partnership between the Joint Distribution Committee in Israel (JDC-Israel) and the Social Policy Institute (SPI) at Washington University in St. Louis, this initiative is among the first of its kind to launch in Israel. Working in close collaboration, research teams from the United States and Israel investigated whether using behavioral insights to make small changes in the delivery of social service programs in Israel and Russia would …

Improving Educational And Career Opportunities For Youth With Disabilities In The Future Trend Program, Yifat Klein, Osnat Elnathan, Mayzahav Itiel Barkai, Miriam Palachi, Anat Halevy, Yair Feingold, Ariel Tikotsky, Guy Hochman

Social Policy Institute Research

This research brief is part of a series by the Social Impact Nudgeathon initiative. This initiative incorporated insights from behavioral economics into the design and delivery of social welfare programs. Developed through a partnership between the Joint Distribution Committee in Israel (JDC-Israel) and the Social Policy Institute (SPI) at Washington University in St. Louis, this initiative is among the first of its kind to launch in Israel. Working in close collaboration, research teams from the United States and Israel investigated whether using behavioral insights to make small changes in the delivery of social service programs in Israel and Russia would …

Household Savings Decisions In Israel’S Child Savings Program: The Role Of Demographic, Financial, And Intrinsic Factors, Ofir Pinto, Olga Kondratjeva, Maya Haran Rosen, Stephen P. Roll, Aytakin Huseynli, Michal Grinstein-Weiss

Social Policy Institute Research

Social Policy Institute Working Paper

Israel’s Child Development Account (CDA) program, the Savings for Every Child Program (SECP), is universal and automatically enrolls all children under the age of 18, depositing approximately $14 into their accounts every month. Parents can transfer an additional monthly $14 into these long-term savings accounts and can choose an investment vehicle for their children’s deposits. The total realized benefits from the SECP depend heavily on parents’ choices. This study examines how demographic, financial, and intrinsic personality characteristics predict household participation in this program. Using a unique data set combining administrative and survey data, we find …

Nothing To Show For It: Non-Degreed Debt And The Financial Circumstances Associated With It, Jason Jabbari, Mathieu Despard, Olga Kondratjeva, Brinda Gupta, Michal Grinstein-Weiss

Social Policy Institute Research

The number of individuals with student loan debt who do not earn their degrees is on the rise; nevertheless, there is little research that demonstrates the financial conditions and circumstances of these individuals. We address this knowledge gap by comparing the financial outcomes of student debt-holders who started college but did not earn a degree—those with non-degreed debt (NDD)—with similar individuals who did not attend college and did not take on student debt. We find that individuals with NDD had greater odds of experiencing material and healthcare hardships, as well as financial difficulties. Individuals with NDD also had greater financial …

Assessing The Short-Term Stability Of Financial Well-Being In Low- And Moderate-Income Households, Stephen P. Roll, Olga Kondratjeva, Michal Grinstein-Weiss, Stephanie Skees

Social Policy Institute Research

Much of the literature on household finances tends to focus on discrete or relatively objective measures like savings, debt, economic mobility, and there has been a lack of research on holistic measures of financial well-being. This gap is due in part to the absence of a common understanding of how to define and measure financial well-being; a gap that was recently addressed by the Consumer Financial Protection Bureau’s development of a financial well-being scale. However, the research on this scale is still scarce and little is known about how financial well-being evolves over time. To that end, this paper uses …

How Do The Lives Of Participants In A Housing Mobility Program Change After They Move? A Case Study Of The Mobility Connection Program, Jenna Hampton Bsw, Stephen J. Roll Phd, Michal Grinstein-Weiss Phd

Social Policy Institute Research

SPI Research Brief No. 20-01. This brief outlines the results of an assessment of Mobility Connection, a housing mobility program in St. Louis, Missouri. Mobility Connection is administered through Ascend STL and this assessment was conducted in partnership with the Social Policy Institute at Washington University in St. Louis. Our research focused on answering the following questions: How do Mobility Connection participants report their lives changing since moving to a High Opportunity Area? How do participants feel about the quality of the Mobility Connection program? To answer these questions, researchers administered a novel survey to 20 Mobility Connection participants who …

Assessing The Short-Term Stability Of Financial Well-Being In Low- To Moderate-Income Households, Sicong Sun, Stephen P. Roll, Olga Kondratjeva, Sam Bufe, Michal Grinstein-Weiss

Social Policy Institute Research

A growing body of research demonstrates that U.S. households experience a high degree of volatility in their finances. This volatility can take the form of large swings in month-to-month income, spells of unemployment, and incurring unexpected expenses.1 Beyond being difficult to predict, these income and expense shocks are costly as well, with one survey finding that the most expensive shock experienced by the median U.S. household cost roughly half of one month’s income.2This financial volatility disproportionately affects low- to moderate-income (LMI) households;3 a population that often lacks the resources to manage this volatility. For example, research from the Survey of …

How Do Changing Financial Circumstances Relate To Financial Well-Being? Evidence From A National Survey, Sam Bufe, Stephen P. Roll, Olga Kondratjeva, Michal Grinstein-Weiss

Social Policy Institute Research

This brief is the third and final brief in a series exploring the financial well-being of low- and moderate-income (LMI) households in the United States. The first brief in this series explored how financial well-being differed between LMI households and the general population. The second in the series examined how financial well-being changed over time in a sample of LMI respondents. This brief uses longitudinal survey data paired with administrative tax data to assess how different household experiences—including the use of alternative financial services, the experience of material and medical hardship, and improvements in physical and financial health—correspond to the …

How Do Changing Financial Circumstances Relate To Financial Well-Being? Evidence From A National Survey, Sam Bufe, Sicong Sun, Stephen P. Roll, Olga Kondratjeva, Michal Grinstein-Weiss

Social Policy Institute Research

This brief is the third and final brief in a series exploring the financial well-being of low- and moderate-income (LMI) households in the United States. The first brief in this series explored how financial well-being differed between LMI households and the general population.¹ The second in the series examined how financial well-being changed over time in a sample of LMI respondents.² This brief uses longitudinal survey data paired with administrative tax data to assess how different household experiences—including the use of alternative financial services, the experience of material and medical hardship, and improvements in physical and financial health—correspond …

Dependent Care Fsas: Policy Proposals To Level The Playing Field For Low- To Moderate-Income Parents, Ellen Frank-Miller, Sophia Fox-Dichter, Sloane Wolter

Social Policy Institute Research

This research was funded by the Annie E. Casey Foundation. We thank them for their support but acknowl-edge that the findings and conclusions presented in this report are those of the authors alone, and do not necessarily reflect the opinions of the Foundation.The authors are grateful to Don Baylor at the Annie E. Casey Foundation for his guidance and support throughout the project. We are also grateful to Elaine Maag at the Urban Institute for offering her expertise related to interactions between the Earned Income Tax Credit and dependent care flexible spending ac-counts. Finally, we extend our sincere thanks to …

Making Dependent Care Fsaa Work For Low- To Moderate-Income Families 5 Action Steps For Employers, Sophia Fox-Dichter, Ellen Frank-Miller, Sloane Wolter

Social Policy Institute Research

Dependent Care Flexible Spending Accounts (DCFSAs) can help workers save money on child care expenses by using pre-tax dollars, but few employees actually use the accounts, particularly low- to moderate-income (LMI) employees, because:

• DCFSAs are difficult to understand; figuring out if they are possible to use and worth the trouble is a complex task for families.

• Families face a “double-hit” if they use the accounts – they have to set aside pre-tax dollars for child care expenses and then pay out-of-pocket before getting reimbursed.

• Using a DCFSA may require certainty about a year’s worth of child care …

Employer-Sponsored Small-Dollar Loans: An Assessment Of Take-Up, Engagement, And Outcomes, Ellen G. Frank-Miller Phd, Sophia Fox-Dichter Msw, Sloane Wolter Ab, Jenna Hampton Bsw, Mathieu Despard Phd, Msw, Geraldine Germain Msw

Social Policy Institute Research

Employees financial wellness program (EFWPs) are gaining in popularity as a strategy to address workers' financial challenges and goals beyond offering health and retirement benefits. Most workers say they are stressed about their finances¹ and a third are less productive at work because of this stress.² Although employers are increasingly interested in offering EFWPs, little research has been conducted concerning these workplace financial products and services.

Dependent Care Fsas: The Uneven Playing Field For Employers And Workers, Ellen Frank-Miller, Sophia Fox-Dichter, Sloane Wolter

Social Policy Institute Research

This research was funded by the Annie E. Casey Foundation. We thank them for their support but acknowl-edge that the findings and conclusions presented in this report are those of the authors alone, and do not necessarily reflect the opinions of the Foundation.The authors are grateful to Don Baylor at the Annie E. Casey Foundation for his guidance and support throughout the project. We extend our thanks to Elaine Maag at the Urban Institute for offering her expertise related to interactions between the Earned Income Tax Credit and dependent care flexible spending ac-counts.In this two-part series, we provide a field …

Financial Counseling For Low- And Moderate-Income Employees: An Assessment Of Engagement And Outcomes, Mathieu Despard Phd, Msw, Yingying Zeng Msw, Msp, Sophia Fox-Dichter Msw

Social Policy Institute Research

Employee financial wellness programs (EFWPs) are gaining in popularity as a strategy to address workers' financial challenges and goals beyond offering health and retirement benefits. Most workers say they are stressed about their finances¹ and a third are less productive at work because of this stress.² Although employers are increasingly interested in offering EFWPs, little research has been conducted concerning these workplace financial products and services.

Financial Counseling For Low- And Moderate-Income Home Health Care Employees: An Assessment Of Take-Up, Engagement, And Outcomes, Ellen G. Frank-Miller Phd, Sophia R. Fox-Dichter Msw, Sloane Wolter Ab, Jenna Hampton Bsw

Social Policy Institute Research

Employee financial wellness programs (EFWPs) are gaining in popularity as a strategy to address workers' financial challenges and goals beyond offering health and retirement benefits. Most workers say they are stressed about their finances¹ and a third are less productive at work because of this stress.² Although employers are increasingly interested in offering EFWPs, little research has been conducted concerning these workplace financial products and services.

Dependent Care Fsas Work For Low- To Moderate-Income Families: 5 Action Steps For Policymakers, Sophia Fox-Dichter, Ellen Frank-Miller, Sloane Wolter

Social Policy Institute Research

Dependent Care Flexible Spending Accounts (DCFSAs) can help workers save money on child care expenses by using pre-tax dollars, but few employees actually use the accounts, particularly low- to moderate-income (LMI) employees, because:

• DCFSAs are difficult to understand; figuring out if they are possible to use and worth the trouble is a complex task for families.

• Families face a “double-hit” if they use the accounts – they have to set aside pre-tax dollars for child care expenses and then pay out-of-pocket before getting reimbursed.

• Using a DCFSA may require certainty about a year’s worth of child care …

Credit-Building Services For Employees: An Assessment Of Engagement And Outcomes, Yingying Zeng Msw, Msp, Mathieu Despard Phd, Msw

Social Policy Institute Research

Employee financial wellness programs (EFWPs) are gaining in popularity as a strategy to address workers' financial challenges and goals beyond offering health and retirement benefits. Most workers say they are stressed about their finances¹ and a third are less productive at work because of this stress.² Although employers are increasingly interested in offering EFWPs, little research has been conducted concerning these workplace financial products and services.

Workplace Credit-Building Counseling At A Midwest Employer: An Assessment Of Take-Up, Engagement, And Outcomes, Ellen G. Frank-Miller Phd, Sophia Fox-Dichter Msw, Sloane Wolter Ab, Jenna Hampton Bsw, Yingying Zeng Msw, Msp

Social Policy Institute Research

Employee financial wellness programs (EFWPs) are gaining in popularity as a strategy to address workers' financial challenges and goals beyond offering health and retirement benefits. Most workers say they are stressed about their finances¹ and a third are less productive at work because of this stress.² Although employers are increasingly interested in offering EFWPs, little research has been conducted concerning these workplace financial products and services.

Financial Well-Being In Low- And Moderate-Income Households: How Does It Compare To The General Population?, Sicong Sun, Olga Kondratjeva, Stephen P. Roll, Mathieu Despard, Michal Grinstein-Weiss

Social Policy Institute Research

Research has increasingly shed light on the precariousness of many households’ financial situations. For example, a large national survey showed that 41 percent of adults lack sufficient liquidity to cover even a modest $400 emergency without taking on debt or selling an asset;¹ a problem that is exacerbated for lower-income households.² Compounding this issue is the fact that financial shocks, such as the loss of income or a major car repair, are common; 60 percent of U.S. households reported a shock in the prior year at a median cost of $2,000^.3

Financial Well-Being In Low- And Moderate-Income Households: How Does It Compare To The General Population?, Sicong Sun, Olga Kondratjeva, Stephen P. Roll, Mathieu Despard, Michal Grinstein-Weiss

Social Policy Institute Research

Research Brief (18-03)

Research has increasingly shed light on the precariousness of many households’ financial situations. For example, a large national survey showed that 41 percent of adults lack sufficient liquidity to cover even a modest $400 emergency without taking on debt or selling an asset; a problem that is exacerbated for lower-income households. Compounding this issue is the fact that financial shocks, such as the loss of income or a major car repair, are common; 60 percent of U.S. households reported a shock in the prior year at a median cost of $2,000.

We would expect that these indicators …

Employee Financial Wellness Programs: Differences In Reach By Financial Circumstances, Sophia R. Fox-Dichter, Yingying Zeng, Mathieu R. Despard, Ellen Frank-Miller, Geraldine Germain

Social Policy Institute Research

Workplace-based Employee Financial Wellness Programs (EFWPs) aim to strengthen employees’ financial well-being through services such as financial coaching, payroll advances and short-term installment loans, credit counseling, debt management, and online financial management tools. Although EFWPs are a fast-growing part of employee benefit packages, offerings vary widely in service type and delivery method across em-ployers, and little research has assessed their efficacy and reach.1 Our prior research2 indicates significant differences among employees, includ-ing by race/ethnicity3, regarding their awareness, utilization, and self-reported benefits from EFWP services. This brief adds to this research by exam-ining these differences in EFWP reach by employ-ees’ financial …

Employee Financial Wellness Programs: Differences In Reach By Race And Ethnicity, Sophia R. Fox-Dichter, Mathieu R. Despard, Ellen Frank-Miller, Geraldine Germain

Social Policy Institute Research

Employee Financial Wellness Programs (EF-WPs) consist of a wide array of workplace-based services and benefits that aim to enhance em-ployees’ financial well-being, such as in-person financial coaching, online financial management tools, and payroll advances or short-term loans. EFWP provision varies across employers with few organizations offering the same set of services. The recently released Employee Financial Well-ness Programs Project: Comprehensive Report of Findings notes that EFWP utilization rates and employee self-reported benefits also vary widely. This report continues the examination of varia-tion in EFWP trends by breaking down measures of EFWP reach by employee race and ethnicity. We examine three …