A report released Friday by Financial Finesse found that although employees have improved their money management skills and have demonstrated an "increased urgency" in retirement planning, employees still have a long way to go to being financially secure.
The report, which is based on first-quarter 2011 data, found that more employees are taking steps to improve their financial situations like managing their cash flow, paying off credit card balances in full, maintaining an emergency fund, and paying bills on time. This trend began in the first quarter of 2010, and has been increasing steadily ever since.
“We first identified this trend in the middle of the recession, with employees developing better financial habits out of necessity. The good news is that it is continuing without the usual complacency that we typically see in an economic recovery,” Liz Davidson (right), CEO and Founder of Financial Finesse, said in a press release. “Every quarter that employees continue this momentum, the less likely they are to backslide and more likely that this is a lasting mind shift in how they manage their finances.”
Calls to Financial Finesse's helpline have focused on short-term planning issues, and callers have been proactive, asking questions about budgeting, establishing an emergency fund, and paying off debt to free up cash flow. Calls about bankruptcy, eviction, and financial emergencies have fallen, as did calls about long-term planning issues.