Making money goals helps employees achieve financial wellness

There’s more to financial wellness than paying bills, but that alone is a challenge for many employees these days. Offering a resource that helps them understand, track and map out their 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 assist them in connecting the “why” behind their money goals, which encourages the short and long-term money habits they need to achieve them.  

“It’s not just about [saving for] retirement or college; it has you think about what you really need and asks you questions along the way,” says Patricia Whittaker, founder of AfireFi. “When you focus on your dreams, you’re acknowledging the qualities you can’t measure with math and you start to realize that money can be a tool.”

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Getting a better handle on finances can improve employees’ mental health as well as their focus and productivity at work: 90% are worried about money, with close to half saying they don’t have enough saved for an emergency or retirement, according to a recent report from Sofi at Work. One-fourth say the stress diminishes their job performance. Additionally, Morgan Stanley found that over 80% of employees believe their employer should be more active in helping with their financial issues.

Afirefi works like both a bank and a financial adviser, says Whittaker, giving people one place to lay out their goals, list their assets, receive feedback and make necessary adjustments. The app will then make recommendations if it sees certain goals aren’t aligned with what is financially possible for them.  

For example, if a user says they want to buy a house in five years but have assets tied up in 20-year bonds, or if they are sitting on cash that would be better off in a retirement fund, the app will communicate more fitting 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 with someone directly. 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 this impacts their finances. This includes everything from fun and entertainment to work to 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. Rather than dwell on any mistakes, employees can  focus on doing better in the week to come, and eventually establish better money habits for the long-term. 

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By making the relationship with finances more enjoyable, people are more inclined to be proactive with it early on, versus only reaching out for help when they are scared, Whittaker says. 

“We find that everyone comes to us after something’s gone wrong — they’re getting a divorce, they’re worried about bankruptcy, they don’t have enough money for retirement,” she says. “I’m hoping that we can move money up the chain, so if it’s part of a benefits package, people get more involved with their money earlier in their life.”