rage household credit card balance is $8,488.

Slow cash flow - Household cash flow isn't flowing very quickly these days, so it's harder to save. Disposable income did grow 4.2% in 2005. But the consumer price index, which measures inflation, grew 3.5%, eroding most of that gain. And, according to a survey the Federal Reserve does every three years, a

Recent research in the US and UK has shown significant shortfalls in savings levels, particularly amongst young people. In 2005 the US savings rate sank to -0.5% which meant that people were spending more than they earned. They did this chiefly by drawing on equity from their mortgage. Whilst financial management is not an obvious issue for organizations, poor ‘financial health’ of employees can lead to employee turnover, stress related illness, absenteeism and poor performance. However, there are some obvious steps organizations can take to improve the financial health of their employees as well as less obvious steps to create a workforce that is financially astute, commercially engaged and accountable.

Why are savings slowing?

Poor returns - One reason for the slowdown in the 401(k)/pension contribution rate might be the lackluster stock market. The Standard & Poor's 500 index gained an average of just 0.4% the past five years, less than inflation. Returns in the UK have been better in recent years but dire warnings about the inadequacy of our pension arrangements only serve to put off potential savers – why should we bother when we know it’s not going to work anyway.

Free spending - Credit cards are more readily available and young people, in particular are targeted. A 2001 report found that two-thirds of all Americans who hold at least one credit card carry forward a monthly balance and the average household credit card balance is $8,488.

Slow cash flow - Household cash flow isn't flowing very quickly these days, so it's harder to save. Disposable income did grow 4.2% in 2005. But the consumer price index, which measures inflation, grew 3.5%, eroding most of that gain. And, according to a survey the Federal Reserve does every three years, av

‘financial health’ of employees can lead to employee turnover, stress related illness, absenteeism and poor performance. However, there are some obvious steps organizations can take to improve the financial health of their employees as well as less obvious steps to create a workforce that is financially astute, commercially engaged and accountable.

Why are savings slowing?

Poor returns - One reason for the slowdown in the 401(k)/pension contribution rate might be the lackluster stock market. The Standard & Poor's 500 index gained an average of just 0.4% the past five years, less than inflation. Returns in the UK have been better in recent years but dire warnings about the inadequacy of our pension arrangements only serve to put off potential savers – why should we bother when we know it’s not going to work anyway.

Free spending - Credit cards are more readily available and young people, in particular are targeted. A 2001 report found that two-thirds of all Americans who hold at least one credit card carry forward a monthly balance and the average household credit card balance is $8,488.

Slow cash flow - Household cash flow isn't flowing very quickly these days, so it's harder to save. Disposable income did grow 4.2% in 2005. But the consumer price index, which measures inflation, grew 3.5%, eroding most of that gain. And, according to a survey the Federal Reserve does every three years, a

e savings slowing?

Poor returns - One reason for the slowdown in the 401(k)/pension contribution rate might be the lackluster stock market. The Standard & Poor's 500 index gained an average of just 0.4% the past five years, less than inflation. Returns in the UK have been better in recent years but dire warnings about the inadequacy of our pension arrangements only serve to put off potential savers – why should we bother when we know it’s not going to work anyway.

Free spending - Credit cards are more readily available and young people, in particular are targeted. A 2001 report found that two-thirds of all Americans who hold at least one credit card carry forward a monthly balance and the average household credit card balance is $8,488.

Slow cash flow - Household cash flow isn't flowing very quickly these days, so it's harder to save. Disposable income did grow 4.2% in 2005. But the consumer price index, which measures inflation, grew 3.5%, eroding most of that gain. And, according to a survey the Federal Reserve does every three years, a

n arrangements only serve to put off potential savers – why should we bother when we know it’s not going to work anyway.

Free spending - Credit cards are more readily available and young people, in particular are targeted. A 2001 report found that two-thirds of all Americans who hold at least one credit card carry forward a monthly balance and the average household credit card balance is $8,488.

Slow cash flow - Household cash flow isn't flowing very quickly these days, so it's harder to save. Disposable income did grow 4.2% in 2005. But the consumer price index, which measures inflation, grew 3.5%, eroding most of that gain. And, according to a survey the Federal Reserve does every three years, a

rage household credit card balance is $8,488.

Slow cash flow - Household cash flow isn't flowing very quickly these days, so it's harder to save. Disposable income did grow 4.2% in 2005. But the consumer price index, which measures inflation, grew 3.5%, eroding most of that gain. And, according to a survey the Federal Reserve does every three years, average household income, adjusted for inflation, fell 2.3% from 2001 to 2004.

But the biggest reason for our poor savings rate is that people have been borrowing against assets — mainly our homes — to get our hands on spending money.

What should organizations do?

It is estimated that 15% of workers in the US are currently experiencing stress from financial problems to such an extent that it negatively impacts their productivity. For businesses this translates to an average dollar loss of $600 per employee per year.

By offering financial planning and debt planning assistance, employers can make a positive impact on their employee’s at work performance.

Financial planning – Independent financial advisors can provide a general overview of an individual’s options on a one-time basis or can help individuals develop a comprehensive strategy geared to a person’s specific financial goals and objectives. By understanding the full extent of the rewards and benefits programme, an employee is more likely to appreciate the benefits on offer and contribute and become a ‘member’ of the organization through pension schemes, for instance.

Debt reduction –Debt management organizations, often working as part of a nonprofit network, will help consolidate debts and identify a simplified method of repaying bills that have got out of hand. These organizations can also act as a third party to deal with part