David Flores Vice President david.flores@moneystepspft.com Whole person view of health David Flores Vice President david.flores@moneystepspft.com 847/283-3488 Office 773/852-4672 Mobile

Topics We’ll Cover The need Solutions Why should organizations care? The MoneySteps solution Arkansas School Districts

The Need

Employees & Personal Finances1 Employees who find it difficult to meet their household expenses on time each month: 2012 2013 2014 2015 2016 2017 49% 42% 40% 38% 36% 33% 1Statistics sourced on this and succeeding slides from the PwC 2017 Employee Financial Wellness Survey

Employees & Personal Finances Employees who consistently carry balances on their credit cards: 2012 2013 2014 2015 2016 2017 59% 53% 51% 48% 47% 45%

Employees & Personal Finances Financial stress by year 2012 2013 2014 2015 2016 2017 61% 53% 52% 52% 48% 45% Financial Stress: more than half (53%) of employees report that they are stressed dealing with their financial situation and nearly half (47%) say that their stress level related to financial issues has increased over the last 12 months

Why should employers care?

Finances While at Work 30% 46% of employees report that finances have been a distraction at work Finances while at work 2013 2014 2015 2016 2017 Millennials (b.1980-1998) 19% 35% 22% 37% Gen X (b. 1965-1979) 32% 29% 24% 34% Baby Boomers (b. 1946-1964) 16% 12% 13% 46% of those who are distracted by their finances at work say that they spend three hours or more at work each week thinking about or dealing with issues related to their personal finances Nearly a third and a half Make a joke about ubiquity of millennials

Reasons for Employer Sponsored Financial Wellbeing Stress reduction – and the anticipated payoff for: Lower health costs Improved absenteeism rates Higher employee engagement Greater employee productivity New hire recruitment Employee retention Retirement readiness – Stop employees from retiring “in place” Great phrase – we’ve seen it all

The Top Initiative for Employers is Focusing on Workers’ Financial Wellbeing2 How likely is your organization to address creating or focusing on financial wellbeing of employees that expands beyond retirement decisions? 59% 56% 33% 33% 2Aon Hewitt - 2017 Hot Topics in Retirement and Financial Wellbeing

Solutions Why you should care

Traditional Approaches to Financial Wellness Retirement Plan Health Plan Employee Assistance Program (EAP) Wellness Program Financial Literacy Programs Traditional Approaches to Financial Wellness Emphasis on growing employee contributions Some financial advising HSAs FSAs Cost Comparison Tools Articles Seminars Webinars Articles Seminars Mindfulness Financial Counseling Stress Management

Today’s Financial Wellness Solutions Specialty Approach Student Loan Programs Short Term Loans “Big Ticket Item” Discounts Remind shift to whole person view

Today’s Financial Wellness Solutions Holistic Approach Survey / Financial Wellness Score Content Budgeting / Calculators Goals Coaching Behavior Change Measurable Foundational Table Stake Remind shift to whole person view

The MoneySteps Solution Genesis of the solution at TMK

We combine educational tools and a unique approach to behavior change to increase financial wellbeing by reducing employee financial stress and helping them take control of their financial future. Behavior change – like all other behaviors – i.e. an app wont lace your sneakers

A Personalized Financial Wellbeing Solution Engagement Email Monthly Newsletter Monthly Webinars Events Website www.financialwellbeing.com Survey Library Automated Budgeting Automated Retirement Income Forecasting Goals / To-dos / Calculators One-on-one Financial Coaching Assigned Financial Coach Online Appointment Setting Telephonic or Secure messaging (website) Participant driven – no programmatic formula Tell stories

Financial Coaching Coaching Team The Coaching Experience Financial backgrounds Coaching backgrounds Coach Certifications: Certified Personal Financial Counselors Fincert.org, Center for Financial Certifications Accredited Financial Counselor (3 – candidates) AFCPE – Association for Financial Counseling & Planning Education The Coaching Experience Unlimited one-on-one sessions Coach communication by phone or secure messaging through the website, www.financialwellbeing.com Onsite coaching is available Online appointment scheduling Coaching priorities are participant driven to maximize engagement and address most pressing areas of anxiety No solicitation of products No fiduciary advice Confidentiality, privacy, and security Coaching Topics 32% Budget 30% Debt 14% Retirement 6% Investing 5% or less: College Savings, Savings, Emergency Fund, Healthcare Expenses, Stress, Home Buying, and others

Financial Wellness Pilot Score Groupings Routinely saving 15% of income 3-6 months of emergency savings Generally on track for retirement Low financial stress Thriving Following budget; spending less than make More than $1,000 in emergency savings Contributing regularly to retirement Finances rarely a distraction Striving Usually spending less than make Credit card balances; little savings Often distracted by finances Moderate financial stress Struggling Living paycheck-to-paycheck No emergency fund Finances are a distraction almost every day Overwhelming financial stress Suffering Financial Wellness Pilot Score Groupings Examples of attribute sets that result in the score groupings

Behavior Changes Actions as a result of program participation: 60% are having discussions with family/significant others 57% are working toward achieving their financial goals 50% are working to reduce their debt 47% are taking steps to become more ready for retirement 31% have created a budget 30% are contributing to an emergency savings fund

Arkansas School Districts Genesis of the solution at TMK

Arkansas School District Project Educational Benefits, Inc. (EBI) Chad Holsclaw Chace Peeler

Survey  Education  Calculators  Budgeting Tool  Financial Coach What we strive for Survey  Education  Calculators  Budgeting Tool  Financial Coach