Presenter
Ed Gilliam

Issues Affecting Workplace
Financial Wellness Alliance
“Employees with higher levels of financial stress are less committed to their organization and are more frequently absent from work.”
Report: Financial Stress and Absenteeism
“Employee financial stress has been known to result in negative productivity behaviors such as absences, tardiness, mistakes, accidents, loss of concentration, and lower output.”
Report: Financial Stress and Workplace Performance
“30 Million Workers in America—One in Four—Are Seriously
Financially Distressed and Dissatisfied Causing Negative Impacts on
Individuals, Families, and Employers.”
Report: Financial Distress Among American Workers

Mental health professionals, EAPs, and counselors and employers need to recognize this issue and refer individuals to a qualified reputable agency and seek financial literacy and education in order to optimize the results and employee performance.

 Income matches debt load
 Personal responsibility & stability
 Determine risk/theft losses/fraud
 Higher the risk the higher the interest or deposits for loans and services, rents leases and mortgage payments
 Licensure/promotions/hiring/background
 AKAs, SSN, ID, LORES, past residence
 Transportation/safety/insurance/bad brakes

 Employment hiring/retention/promotion
 Cost of insurance premiums
 Cost of Transportation & Loan rates
 Cost of Rents, leases & Mortgages
 Utilities: cellphone/gas/water/electric
 Your entire quality of Life!

 Tax Liens/Past Due Child Support
 Bankruptcy Chapter 13 and 7
 Loans and Credit Card Charge-offs
 Auto Loans and Repos
 Mortgages Foreclosures
 Collections/Medical/Utilities/Credit Cards
 Slow pay history & balance/limits

 Mismanagement/Ignorance/education
 Divorce/family separations
 Medical Expenses
 Drugs/alcohol/gambling
 Shopping & hobbies
 Disaster/Storms/flooding & fire
 No savings or insurance to fall back on
 Combination of one or more above.

What Should I Do With My Paycheck?
70% of Pay Check
10% of Pay Check
10% of Pay Check
10% of Pay Check
Living, Shelter, Food,
Transportation, Clothing
Church • Charity
Short Term Savings
Long Term Savings

Money Trivia Question
Jane & Bill has a $5,000.00 Credit Card Balance.
Bank Card Interest Rate: 18%.
Minimum Payment of Balance: 3.5% a) If they pay the minimum each month how long will it take to pay off the debt, and how much interest?
b) If they pay $175.00 each month how long will it take to pay off the debt, and how much interest?
180 months / 15
Years
$3,625.00 interest
38 months
$1,578.00 interest

Assumed Yield
Monthly Savings
Daily Savings
AGE
48
49
50
51
44
45
46
47
40
41
42
43
35
36
37
38
39
31
32
33
34
27
28
29
30
20
21
22
23
24
25
26
60
61
62
63
64
65
56
57
58
59
52
53
54
55
Total Invested
Amount Available at Age 65
The Effect of Compound Interest
5%
$50.00
$1.67
5%
$50.00
$1.67
5%
$72.00
$2.40
Charlotte Saver # 1
(annual savings)
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
Charlotte Saver # 2
(annual savings)
Charlotte Saver # 3
(annual savings)
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$864
$6,000
$41,628
$21,600
$57,502
$21,600
$41,236
5%
$50.00
$1.67
Charlotte Saver # 4
(annual savings)
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$27,600
$101,211

Assumed Yield
Monthly Savings
Daily Savings
AGE
59
60
61
62
63
64
65
53
54
55
56
57
58
47
48
49
50
51
52
41
42
43
44
45
46
35
36
37
38
39
40
30
31
32
33
34
24
25
26
27
28
29
20
21
22
23
Total Invested
Amount Available at Age 65
The Effect of Compound Interest
8%
$100.00
$3.33
8%
$100.00
$3.33
8%
$144.00
$4.80
Charlotte Saver # 1
(annual savings)
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
Charlotte Saver # 2
(annual savings)
Charlotte Saver # 3
(annual savings)
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$1,728
$12,000
$257,027
$43,200
$224,523
$43,200
$126,327
8%
$100.00
$3.33
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
Charlotte Saver # 4
(annual savings)
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$55,200
$502,111

1. Suppose you are a 22-year-old who just started working and, while you have not found a permanent job, you commit to start saving today. Assume you succeed and save just $730 each year (which comes out to saving $2 a day). At 7% interest compounded once a year, every year from now until you retire, how much will you have for retirement consumption, savings, investment and charitable purposes 43 years from now when you reach the age of 65? A good compound interest calculator is available at MoneyChimp.com
Answer: $193,538.22
2. Now suppose you decide to wait until are 30 years old to start saving $730 a year at 7% until you retired at 65. That leaves you with only 35 years to save $730 a year and roll over past savings and earned interest. Now, how much would you have on retirement? What is the opportunity cost of waiting? That is, what do you sacrifice in retirement “income” and interest
Answer: $107,976.83, $85,561.39 • $193,538.22
-$107,976.83 = $85,561.39
$2 per day, 7% interest, start at age 22 or 30, to age 65
Total Return:
Investment:
Interest:
Age 22
$193,538.22
$31,390.00
$162,148.22
Age 30
$107,976.83
Lost in Value
$85,561.39
$25,550.00
$82,426.83
$5,840.00
$79,721.39

3. Now suppose at 22 or 30 years old to start saving $3 a day, $1,095 a year at 7% compounded annually until you retired at 65. At 22 years old, how much will you have on retirement at 65? What if you wait 8 years later and start at age 30? How much of your retirement fund is lost as a result of foregone savings? Foregone interest?
Answer: $290,307.33 • If you started at 22, you would have $290,307.33 when you retire, but if you waited until you were 30 then you would only have
$161,965.24. Waiting 8 years to start saving would cost you $128,342.09, of which only $8,760 would be foregone savings, the other $119,562.09 would be foregone interest
$3 per day, 7% interest, start at age 22 or 30, to age 65
Age 22 Age 30 Lost in Value
$161,965.24
$128,342.09
Total Return: $290,307.33
Investment: $47,085.00
Interest: $243,222.33
$38,325.00
$123,640.24
$8,760.00
$119,582.09

4. Now lets see if you are 22 or 30 years old you start saving just $1 a day, $365 a year at 7% compounded annually until you retired at 65. At 22 years old, how much will you have on retirement at 65? What if you wait 8 years later and start at age 30? How much of your retirement fund is lost as a result of foregone savings? Foregone interest?
Answer: If you started at 22, you would have $96,769.11 when you retire, but if you waited until you were 30 then you would only have $53,988.41. Waiting 8 years to start saving would cost you $42,780.70 of which only $2,920.00 would be foregone savings, the other $39,860.70 would be foregone interest
$1 per day, 7% interest, start at age 22 or 30, to age 65
Age 22 Age 30 Lost in Value
Total Return: $96,769.11
$53,988.41
$42,780.70
Investment: $15,695.00
$12,775.00
$2,920.00
Interest: $81,074.11
$41,213.41
$39,860.70

NOW LETS SEE HOW COMPOUND INTEREST CAN WORK AGAINST YOU
Now lets see the results of how compound interest works in a Credit Card Payment.
Assume you spend $2 per day, $730 per year, with a 13% interest rate, and you pay the minimum of 4% each month on the Credit Card balance

 Talk to a counselor about budget spending plan and alternatives. Educate your employees Re:
Financial literacy and Credit.
 Settlement, Bankruptcy, DMP program.
 Reducing debt/Savings plan is the key to building
Wealth.
 Don’t borrow on credit and create a saving account for emergencies.
 Save all receipts/checks/handle issues early!!
 Save and maintain insurance coverage
 Pay bills on time and don’t revolve.
 Partner with a Non profit Counseling organization

Raise Your Credit Score
Pay your bills & taxes on time
Keep Balances at 30 % of your limit
Don’t cancel credit cards
Don’t make too many credit applications
Take care of issues early before they get out of control
Limit Finance company loans, check cashing companies and payday lenders
Get help early if you fall behind
Excellent Finance Calculators http://www.bankrate.com
http://www.nolo.com
http://www.dinkytown.net
http://www.bankrate.com

Financial Wellness Alliance
What to look for in a Counseling
Agency Partner:
 Counselors are certified and member of nationally recognized Association licensed in states you cover.
 Counseling organization is ISO 9000
COA certified. HUD, AICCA
 Counseling process is well defined & computer assisted.
 Recipients are made aware of all of their resolution options.
 Custom financial plan is supported through completion.

Financial Wellness Alliance
Network Services Available
• Financial Crisis Hotline
• Debt Solutions
• Credit Solutions
• Home Ownership Counseling
• Foreclosure Assistance
• Savings Programs
• UDOJ, ISO, Assoc memberships AICCA, NFCC, HUD
• Periodic Newsletters
• Toll-free, confidential access to Certified Counselors
• Financial Literacy seminars
• Foreclosure Assistance
• Provides lunch and learn

Financial Wellness Alliance
Employer Benefits
The Financial Wellness offers:
 Reduced impact of financial stress on workplace
 Reduced payroll advance, HR expense, turnover processing Garnishments
 Improved employee well being i.e. collection calls
 Improved work attendance and productivity
 Improved workplace environment & reduced risk from fraud and theft
 Improved employee productivity = Improved profitability

Financial Wellness Alliance
SAMPLE DEBT MANAGEMENT PROGRAM
Name of Creditors
Citibank Bankcard
Greenwood Trust Company
MBNA America
MBNA America
MBNA America
MBNA America
RMA/America Express
Total of 7 Accounts:
Due Date: Jan. 24, 2005
Suggested Monthly Donation: $45.00
Suggested Enrollment Donation: $75.00
Open Bal.
$31,863.06
$15,072.82
$28,666.63
$54,150.04
$20,011.23
$6,860.76
$20,377.41
$177,001.95
Old Pay New Pay
Current %
Interest
Program %
Interest
$663.00
$321.00
$501.00
$733.00
14.90
$302.00
19.24
$645.00
18.99
$306.00
$1,219.00
$369.00
$451.00
6.75
21.99
$150.00
$408.00
$155.00
$428.00
22.99
13.50
$2,718.00
$3,933.00
9.90
17.00
15.00
15.00
15.00
15.00
0.00
Self Program
# Payments:
Years to Pay:
489
40.7
Interest Savings: $94,509.00
62
5.1
Total Interest: $162,894.00
$68,385.00

 Will counseling ruin my credit?
 If your not paying on time your credit is already less than acceptable.
 I got turned down for a loan because I was in a DMP. Purpose of DMP is to get you out of debt-not get more Credit.
 No it does not happen overnight.

Provide help and hope through charitable relief to the poor and distressed by personalized education, counseling, and support programs that reduce and avoid the burdens of financial crisis, debt stress, bankruptcy, and their consequences.
Provide empowerment to the public through charitable education programs of financial literacy, money management, credit management, and debt reduction to help meet life's challenges and opportunities.
(704) 943 0391

How credit affects individuals in the Work place.
Choosing a counseling agency partner.
Wealth versus Debt.
Solutions and prevention.
Who and how companies use Credit Reports.

Evaluations
Handouts