Financial literacy is vital for all workers, especially those re-entering the workforce through … [+]
Financial stress among U.S. workers continues to grow as inflation persists, driving fears of rising consumer goods prices and interest rates. In its annual Employee Financial Wellness Survey, PwC, a global professional services firm, reported that 57% of respondents said, “finances are the top cause of stress in their lives.” And more than 50% are concerned about increasing expenses and the effects of inflation. This financial stress is also prevalent among participants of the Ticket to Work (TTW) Program, who are attempting to re-enter the workforce and achieve financial stability.
Economic uncertainty and financial stress are common among Social Security Disability Insurance (SSDI) beneficiaries returning to work through the Ticket to Work (TTW) Program. Financial stress can negatively impact sleep, mental health, self-esteem, physical health and personal relationships. While some TTW participants look forward to getting back to work following an extended absence, they are often apprehensive about wages, cost of living and day-to-day financial management.
Financial concerns can affect employees’ motivation and productivity at work. PwC’s research indicates that individuals worried about finances spend three or more working hours per week dealing with these issues.
A strong foundation in financial literacy, including a keen understanding of financial concepts and skills, allows employees to adhere to budgets and watch their savings grow. This can reduce financial anxieties and promote greater engagement in the workplace.
Six Financial Literacy Tips For Ticket Holders And Others
Recognizing the importance of financial well-being, individuals returning to work through the TTW Program can benefit from understanding and applying sound financial practices. The more knowledgeable you are about financial matters, the better equipped you will be to meet your financial goals, including managing day-to-day expenses, paying down debt and saving for retirement.
Here are six tips TTW participants can use to help understand key financial strategies and how to incorporate them into daily life. Social Security-authorized Employment Networks (EN) and state Vocational Rehabilitation agencies (VR) can provide support along the way.
Tip: Understand your income and benefits.
How: Track your earnings and be aware of how wages affect your disability benefits. By doing so, you can take advantage of Social Security incentives like the Trial Work Period that allows you to earn more and protect your SSDI benefits. Employment Networks can help track and report your earnings to Social Security as required by the TTW Program.
Tip: Budget wisely.
How: Create and stick to a budget that prioritizes necessary expenses. This practice can help TTW participants achieve financial self-sufficiency – the ultimate goal of the program.
Tip: Set aside emergency funds.
How: Aim to save three to six months of expenses. Regular savings can prepare you for unforeseen expenses and build financial stability.
Tip: Manage your debt.
How: Keep up with payments, avoid new debt, and consider debt consolidation with reputable companies. Your credit score and overall financial health will benefit when debt is under control.
Tip: Plan for long-term financial goals.
How: Even if you’re not ready to retire, set achievable financial goals to be prepared. A directory of available resources, programs and publications to help you plan is available through the Office of the Comptroller of the Currency.
Tip: Monitor your credit.
How: A good credit score is essential for significant purchases, favorable credit card interest rates and lease agreements. Pay your bills on time to avoid negative marks and check your credit score at least annually through credit monitoring services like Experian, Equifax and TransUnion.
Financial literacy is vital for all workers, especially those re-entering the workforce through Ticket to Work. The TTW Program encourages financial self-sufficiency. By understanding and applying simple, yet effective financial strategies daily, along with support from ENs and VRs, participants can move closer to achieving this goal.
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