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Setting financial goals helps employees achieve financial well-being
There is more to financial well-being than paying bills, but that in itself is a challenge for many employees today. Offering a resource that helps them understand, track and map your money can help them make tangible progress.
Financial platform AfireFi is using AI to help employees make a financial plan: AI-powered questions and live help help them connect the “why” behind their financial goals, which encourages them to short and long term financial habits they need to reach them.
“It’s not just about [saving for] retirement or college; it makes you think about what you really need and asks questions along the way,” says Patricia Whittaker, founder of AfireFi. “When you focus on your dreams, you’re recognizing the qualities you can’t measure with math and you start to realize that money can be a tool.”
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Having better control over finances can improve employees’ mental health, as well as their focus and productivity at work: 90% are worried about money, with nearly half saying they don’t have enough saved for an emergency or retirement, according to a recent report from Sofi at Work. A quarter say stress reduces their performance at work. What’s more, Morgan Stanley found that more than 80% of employees believe their employer should be more proactive in helping them with their financial problems.
Afirefi works like a bank and a financial advisor, Whittaker says, giving people a place to lay out their goals, list their assets, get feedback and make adjustments as needed. The app will then make recommendations if it sees that certain goals aren’t in line with what’s financially possible for them.
For example, if a user says they want to buy a house in five years but have assets invested in 20-year bonds, or have money that would be better kept in a retirement fund, the app will communicate more suitable options, Whittaker says.
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The app also offers a library for larger, more general financial questions, as well as live support for people who prefer to speak directly to someone. To make the connection between people and their money consistent, AfireFi also has users input their daily routines and other activities so they can see how they spend their time and how it affects their finances. This includes everything from fun and entertainment to work and paying bills.
“They start to realize that how they spend their days is how they spend their money, and where their money is going,” Whittaker says. “You also start to realize where you’re wasting time, and what things you’d rather be doing more of.”
The app also prompts a 10-minute weekly check-in so users can reflect on how their time and money were spent. Instead of dwelling on mistakes, employees can focus on doing better next week and eventually establishing better financial habits in the long run.
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By making the relationship with finances more enjoyable, people are more likely to be proactive from the start, rather than only seeking help when they’re scared, Whittaker says.
“We’ve found that everyone comes to us after something has gone wrong — they’re getting divorced, they’re worried about bankruptcy, they don’t have enough money for retirement,” she says. “Hopefully we can move money up the chain, so if it’s part of a benefits package, people are more involved with their money earlier in their lives.”