2025 wake-up call: The growing need for financial literacy

There’s never a bad time to talk about money—but this year, the need feels especially urgent. Rising healthcare costs, economic uncertainty, and gaps in financial knowledge have created a perfect storm affecting millions of Americans. With tax season behind us and Financial Literacy Month wrapping up, it’s an ideal time to pause, think back on financial wins (and losses), and make a game plan for the future.

As someone who’s passionate about helping people make confident decisions around their health and finances, I see this as an important moment for action. Because the reality is, far too many people are just trying to make ends meet.

A 2025 Bankrate report found that 59% of Americans don’t have enough savings to cover a $1,000 emergency while 80% of Gen Z fear they couldn’t afford basic expenses if they suddenly lost their income.¹

This kind of financial stress changes how people approach life. It turns everyday choices into stress points and can make long-term planning feel out of reach.

But the good news is, financial literacy can close those gaps.

With the right tools, resources, and benefits education, you can help employees feel more secure and better prepared for whatever life brings. Here’s what you can do to make a difference.

Why benefits literacy deserves more attention

When we talk about financial literacy, we usually think of things like managing a budget or understanding interest rates. Those are critical, of course, but there’s another piece of the puzzle that we don’t talk about enough: benefits literacy.

Benefits literacy is about helping people make the most of what they earn—not just their paycheck but also the benefits and perks their employer provides.² And when people don’t understand their benefits, they often miss out on opportunities to save and plan ahead.

On the other hand, employees who have an excellent understanding of their benefits are almost 4 times more confident they chose the right plan for their needs. And that confidence leads to smarter decisions, better outcomes, and less stress. The ripple effect of that better understanding is huge—for both you and your employees.

And one of the most powerful places to start is with Health Savings Accounts (HSAs).

Boost benefits literacy to maximize HSA use

When employees understand how HSAs work, the value goes way beyond just saving on healthcare today. They can gain a long-term tool for financial wellbeing.

Paired with high-deductible health plans (HDHPs), HSAs offer triple-tax advantages, funds that never expire, and the potential to grow into a powerful nest egg.³

But not everyone sees the value of an HSA or feels confident using one. Many people mix up HSAs with FSAs or get spooked by the word “high-deductible.” That confusion often means these benefits go underused or overlooked altogether.

This is where your support can make all the difference. With clear education and simple tools, employees are far more likely to engage and use their benefits effectively.

A barrier to understanding is the branding of high-deductible health plans, which can sound intimidating. People may opt out because they don’t understand how these plans work. To address this, we focus on providing straightforward explanations and myth-busting materials.

Three ways to help employees see the value of an HSA

The real power of HSAs comes through when people understand how to use them, both now and in the future. It’s all about simplifying the message and showing your team that these accounts aren’t just confusing tools buried in benefits brochures. They’re opportunities to save smarter, plan ahead, and feel more secure about the future.

Here are three simple ways to help your team get the most out of their HSA.

1. Start with smart saving.

Saving is foundational to healthy finances and contributing to an HSA can be a smart way to make your money work harder for you.²

But it’s important to remember that an HSA isn’t just another deduction coming out of a paycheck. Every dollar employees put in is tax-deductible, which means they’re saving on taxes while setting money aside for care.

Even small, consistent contributions can go a long way. That money is there when it’s needed—whether for a routine visit or an unexpected expense.

Take Austin Morris, who’s getting ready to grow his family. He shared, “I already know that we can go and get the care we need and that it will be covered because we have that money set aside in the account.” His story is a great reminder of what truly matters—not just the financial benefits but the peace of mind that comes with being prepared.

2. Help them spend with confidence.

The beauty of an HSA is its flexibility. For Kim Smith, it covered the medical costs of her newly adopted child. It can also help cover everything from routine doctor’s visits to braces for children—or even that unexpected trip to urgent care. It’s a safety net that’s there when people need it most.

But there’s a learning curve. A lot of folks aren’t sure what actually counts as a qualified medical expense, and that uncertainty can make them hesitant to use their account or miss out on savings altogether.

That’s why proactive education matters so much. Help paint a clear picture of all the ways an HSA can be used, both for the everyday care people expect and the surprise moments they don’t. Encourage your team to think ahead, too. If someone knows they have a big expense coming up, like a surgery or specialist visit, show them how to set aside HSA dollars so they feel ready and confident.

3. Show the long-term power of HSAs.

This is where HSAs really shine. Unlike other accounts, HSA funds never expire. They can grow year after year and become a reliable safety net, especially in retirement.

Just ask Warren Barnes. His HSA is helping him plan for retirement and spend more time with his grandkids, free from the stress of healthcare costs.

Even in retirement, HSAs keep working for you. These funds can cover out-of-pocket costs that Medicare doesn’t fully take care of.

And here’s something many people don’t realize—once someone turns 65, they can use HSA dollars for anything penalty-free, just like a 401(k).⁵ They’ll just pay regular income tax on non-qualified medical spending. That flexibility turns an HSA into a powerful tool for long-term financial security.

When you’re talking to your team, help them see that an HSA can be a way to build a stronger, more secure future. It might just inspire them to max out their contributions, especially as they start thinking about retirement.

Resources to support financial wellbeing year-round

I’m here to tell you that you have an immense platform to drive positive change. If you’re looking to help employees conquer financial stress and make better use of their benefits, you don’t have to reinvent the wheel.

I recommend starting with these three tools that make benefits education simple and effective all year long.

1. Open Enrollment Toolkit: Let’s be honest—benefits language can feel like alphabet soup. This is your go-to resource for creating clear, engaging messaging around your benefits offering. It’s packed with templates, bite-sized videos, and practical guides to make open enrollment a breeze.

2. Content Library: Employees learn in different ways. Some like videos, others prefer short articles. This library lets you offer a mix of resources organized by topic to help employees make informed benefits decisions.

3. HSAnswers: Employees always have questions, and this AI-powered tool has many answers. It’s fast, reliable, and easy to use, so your team feels supported without overloading HR.

Employees are not a monolith. They have different roles, responsibilities, and time constraints. The key is delivering the right message in a way that resonates with each individual.

Turn financial stress into financial strength

Financial Literacy Month may be over, but the real work is just getting started. By putting benefits education front and center, we can help employees replace financial stress with lasting confidence. And when people feel secure, they can show up fully—for their work, their families, and themselves.

I invite you to take a fresh look at how you’re supporting your employees, not just with a paycheck but with the benefits and tools that build lasting security.

Remember, you don’t have to do it all at once. Start small. Start by showing your employees you’re in their corner. Together, we can turn financial uncertainty into financial security for everyone.