Which Side of the Financial Divide Are You On?
People who are already doing well are seeing their wealth continue to grow. The rest could use a little help, and financial coaches could be just the ticket.


If you were to ask American workers today about their current financial situation, their responses would likely result in opposing stories. While those who are already doing well financially — investors, savers and homeowners — may have reaped the benefits of recent market gains, those who have been struggling are bearing the brunt of the impact of persistent inflation and higher interest rates.
We’re facing an alarming situation where the gap in the financial standing of American workers is widening. As a Certified Financial Planner™ professional and the director of a financial wellness think tank, I believe that employers need to intervene.
First, some good news for finances
Taking a step back, it’s important to acknowledge the improvements in the financial health of many Americans and the encouraging signs for closing the financial divide. Contributions to retirement savings have reached all-time highs. An analysis from Fidelity found that more than a third of workers increased their retirement savings contribution rate last year — with 78% contributing enough to receive their full company match and a record amount of 401(k) contributions in the first quarter of 2024. And with market gains of 26% last year, investors and savers saw healthy growth of their 401(k) balances and other investing accounts.

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A recent report from Financial Finesse, “Workplace Financial Wellness in America,” also showed encouraging signs, revealing that employees were 69% more likely to be financially secure than the previous year.
Now, the bad news
At the same time, many Americans have been left behind by the wave of economic gains. They’ve continued to struggle financially as a result of how inflation has driven up the cost of living and forced many to deplete their savings just to make ends meet.
The statistics alone tell a distressing story: 78% of Americans are living paycheck to paycheck, 27% have no savings for emergencies; credit card debt is at an all-time high; and a record number of workers have taken hardship withdrawals from their 401(k) accounts. The same report from Financial Finesse revealed the share of employees reporting unmanageable levels of financial stress increased 16%.
Where financial coaching comes in
So how can we make it possible for Americans to improve their financial situation when this divide exists? While there is no one-size-fits-all solution, financial coaching can be instrumental in helping workers improve their financial health.
In an analysis of employees who worked with a financial coach, more than half who initially reported having high or overwhelming levels of financial stress reported a significant reduction in their stress levels after working with a financial coach. In fact, financial coaching lowered stress levels for employees on both ends of the financial spectrum. Considering money is a top source of stress for American adults, employers cannot ignore the impact this stress is having on their employees.
Workplace financial coaching can help address the evolving financial needs of employees and empower them to make informed decisions to improve their financial health. In today’s constantly changing economic environment, where the financial snapshot of one worker may be completely different from the co-worker sitting next to them, employers can provide them with a service that benefits both.
We cannot continue down the current path where only those who are currently financially stable are seeing their wealth grow. Democratizing access to expert guidance and information can help move the needle by inspiring changes in people’s financial behavior through workplace financial coaching. Now, it’s up to employers to prioritize investing in benefits that will help bridge the financial divide.
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Greg Ward, CFP®, is the Director of the Financial Wellness Think Tank at Financial Finesse, where he oversees industry-leading research on financial wellness best practices and trends, looking at both the workplace environment and employee sentiment. Recent examples include studies on the shifting financial priorities of Millennials and Gen Z and longstanding racial financial wellness and wealth gaps.
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