Investing

Ramona Persaud is the portfolio manger of the Fidelity Equity-Income Fund (FEQIX). She’s a veteran of the asset manager, having been there since 2003.
The strategy held its own against the broader market, as Persaud’s value tilt and preference for dividend-paying stocks kept losses down.
Her inclination toward value strategies ties back to her childhood. “Value investing is like having a low budget and seeing how much you can buy,” she said.”

Ramona Persaud
Source: Fidelity

The broader market suffered in 2022 as the Federal Reserve embarked on its rate-hiking campaign. Amid the tumult, the Fidelity Equity-Income Fund (FEQIX) outperformed the broader market with a total return of -5.07% – the result of portfolio manager Ramona Persaud’s search for value and quality.
“It was such a hard year for everyone,” she said. “I do think last year was a good example of highlighting the process.”

The fund shone as the Nasdaq Composite – whose Big Tech components were routed by higher interest rates – cratered 33.1%, and the S&P 500 shed more than 19%.
“Value is proven out through data over time,” she said. “We didn’t truly see it in the last decade, but value over long periods of time is your best alpha factor.”
The fund posted 3-year trailing returns of 18.71%, through April 4, according to Morningstar. The fund’s 5-year and 10-year trailing returns were 9.27% and 9.13%, respectively.
“She is looking for stocks with low expectations baked into them,” Robby Greengold, strategist for Morningstar Research Services, said of Persaud’s approach.
“A lot of the companies she buys have relatively high or stable profits and strong free cash flow generation,” he added. “She thinks that a portfolio of companies that are inexpensive, high quality dividend paying stocks should outperform on a risk-adjusted basis.”

In search of a good deal

FEQIX’s allocation toward blue-chip names that pay dividends such as JPMorgan Chase and Johnson & Johnson, as well as Exxon Mobil – which benefited from higher energy prices last year – protected it from the most severe price declines in 2022.

Arrows pointing outwards

The market rout also presented plum buying opportunities for Persaud, who has an eye for quality names on sale.
She spotted good discounts in the consumer discretionary sector – particularly apparel and retailers that stumbled as their inventory piled up. Large cap, low beta health-care stocks also made for a solid opportunity. Cyclical tech also became interesting, but “none of the high-flying tech,” she said.
“When the market panics, you get this sweeping effect when everything gets sold off,” Persaud said. “There’s a lot of cyclical tech, things like semiconductors, that sold off really hard because of the fear around long duration. Those are extremely high-quality businesses.”

Part of the immigrant experience

Persaud’s focus on value and quality are more than just a management style. It’s a tendency that ties back to her childhood in New York City as the daughter of parents who emigrated from Guyana.
“When I thought about why I like low-expectation investing, it goes back to the frugality of the immigrant background: You have to make a lot of a little,” she said. “Value investing is like having a low budget and seeing how much you can buy – that’s how I grew up.”
At one point, Persaud, a self-described “math and science kid,” was on track to follow in her father’s footsteps and become an engineer. In particular, she wanted to work toward a PhD in environmental engineering. A part-time job at Morgan Stanley to help pay for books while she was attending the Polytechnic Institute of New York University — now NYU’s Tandon School of Engineering — introduced her to the world of capital markets.
At Morgan Stanley, she built systems to digitize the firm’s trade clearing operations and became hooked. “It was the pace of the capital markets business, even though it was a back office – the pace completely matched,” she said.
It was enough to sway Persaud into a life-changing decision: She had won a fellowship from the National Science Foundation to get her PhD, and she ultimately passed on it to pursue a career in finance.
“My dad wasn’t happy,” she said. “The National Science Foundation fellowship as a brown immigrant woman is a really big deal. We had only been in the country for less than 10 years, so he was like, ‘What are you doing?’ That was very heartbreaking for him.”
Persaud found a way to combine her love of research and the excitement of capital markets, this time deciding she’d make a move from the back office to become a research analyst. She earned her master of business administration at the University of Pennsylvania’s Wharton School, interned at T. Rowe Price and made her way to Fidelity – where she has been since 2003.
At Fidelity, Persaud manages an array of strategies aside from FEQIX, including the Fidelity Global Equity Income Fund (FGILX) and Fidelity Advisor Global Equity Income Fund (FBLYX). She also co-manages the sub-portfolio of the Fidelity Advisor Multi-Asset Income Fund (FWATX) and the equity sleeve of the Fidelity and Fidelity Advisor Strategic Dividend Income funds (FSDIX and FASDX).
Income is a common theme for the offerings – and that’s not an accident. The search for steady income is also a keystone of her style and her upbringing.
“I like to balance price return with income in order to dampen overall volatility because what I’m really looking for is risk-adjusted return,” she said. “In a way, that’s an extremely natural concept to me, because I do think it comes from the immigrant history of trying to do a lot with a little.” More

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Black families face barriers to wealth creation due to a system of inequities, which has resulted in a growing disparity in retirement savings, according to Thasunda Brown Duckett, president and CEO of TIAA, a Fortune 100 financial services organization.
To address the racial retirement gap and work toward building generational wealth for Black Americans, Duckett said access to a workplace retirement plan is not enough. “We have to make sure that everyone is participating.”

The disparity in wealth between Black and white households in the U.S. — referred to as the racial wealth gap — has paved the way for a significant retirement savings shortfall that is only growing, according to Thasunda Brown Duckett, president and CEO of TIAA.
“There is a real problem,” she said Tuesday in a conversation with CNBC senior personal finance correspondent Sharon Epperson during CNBC’s Equity and Opportunity summit. TIAA is a Fortune 100 financial services organization serving some 5 million workers in the academic, cultural, governmental, medical and research fields.

Many older Americans are concerned about their retirement security. However, Black households are at a greater risk of being unable to maintain their standard of living in retirement compared with their white counterparts, several studies show.

As part of its National Financial Literacy Month efforts, CNBC will be featuring stories throughout the month dedicated to helping people manage, grow and protect their money so they can truly live ambitiously.

According to the U.S. Federal Reserve’s latest Survey on Consumer Finances, 57% of white families had savings in retirement accounts, compared with only 35% of Black families and 26% of Hispanic families.
And while white families had, on average, a retirement account balance of $168,000, not including pensions, the average balances for Black and Hispanic families were $38,300 and $27,300, respectively.
“All Americans run the risk of running out of money, and as you look at minorities or women, that number is even more pronounced,” Duckett said.

How to overcome structural and systemic issues

For starters, fewer Black and Hispanic households have or use employer-sponsored retirement plans. About 64% of Hispanic workers, 53% of Black workers and 45% of Asian-American workers have no access to a workplace retirement plan at all, according to AARP. 

Tax breaks for retirement plans, such as 401(k) plans and individual retirement accounts, may be further widening the gap, according to a separate analysis from the Tax Policy Center.  
All employers, including small business owners, must provide access to a workplace plan to make it easier to save, Duckett said, so employees are “taking the necessary steps to have a secure retirement, while managing the high-stress environment we are dealing with today.”

For those who are in business for themselves and don’t have a 401(k) or other workplace retirement plan, it’s important to use alternative savings tools such as an IRA, she said.
“We have to make sure that everyone is participating.”

Financial education is ‘critical’

To further address the racial retirement gap and work toward building generational wealth for Black Americans, Duckett said, financial literacy “absolutely is critical.”
“When you know better, you do better,” she added.
There is an important role for schools to play, she said, but a financial education should continue in the workplace.
And “it can’t stop there,” she added. “It’s not enough to just have it; it is our responsibility to make sure that our employees are engaging with the information in a way that they are taking action.”

Auto-enrollment and auto-escalation features can also help ensure all workers can take full advantage of matching contributions, when available, and stay on track with their long-term goals.
Finally, Duckett said, families should meet with a financial advisor to fine-tune their balance sheet so they are able to divert a portion of their salary every month to a separate rainy day fund. This will prevent having to tap retirement accounts in case of an unexpected financial shock or emergency expense.
“It’s not what you make, it’s what you keep,” she said.
Ultimately, that’s what will allow Black households to “transfer wealth, and not debt, to future generations,” Duckett said. More

Smart Tax Planning

You can’t claim the home office deduction as a full-time employee with W-2 earnings, but it may be possible with 1099 income as a contractor or self-employed worker.
To qualify, you must use your home office regularly and exclusively for work, and there are two ways to calculate the tax break, according to the IRS.

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If you’re one of the millions of Americans who worked remotely — fully or partially — in 2022, you may be wondering about the home office deduction on your taxes.
While remote work has declined since the early days of the pandemic, nearly 30% of employees were telecommuting in January, according to LinkedIn’s Workforce Confidence Index.

However, many of those workers can’t claim the home office deduction, said Brad Sprong, national tax leader of KPMG Private Enterprise.

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

Assess IRS guidelines for your workspace

Your workspace must meet certain IRS guidelines to qualify for the deduction, said Rob Burnette, CEO of the Outlook Financial Center.
Based on the square footage of a specific area in your home, you must use your “home office” exclusively for work, he said. And the IRS expects it to be the principal place for your business, used regularly. 
“It doesn’t need to be a room with four walls around it,” Sprong said, noting that it could be a designated 200 square feet in your home. But “it would be hard to argue that your kitchen table is exclusively for business,” he added.

Calculate the home office deduction 

There are two ways to calculate the home office deduction: the “simplified option” and the “regular method,” according to the IRS.  
The simplified option uses a standard deduction of $5 per square foot of the portion of your home used for business, capped at 300 square feet, or $1,500. 
The regular method, which is more complicated, uses the percentage of your home used for business, including actual expenses, such as part of your mortgage interest, insurance, utilities, repairs and depreciation. The calculation happens on Form 8829. 

“The simplified method is my favorite way because most people don’t have the records or enough deductions to make the regular method work,” Burnette said. Typically, he calculates it both ways for new clients to see which option provides the bigger tax break.
Of course, some taxpayers may get a bigger tax break by using the regular method. “While it’s more cumbersome, it’s much more beneficial because the simplified option is capped at $1,500,” Sprong said.
But when using the regular method, it’s important to have documentation to show proof of your deductions. “If you’re drawn for audit, it’s an area of focus for the IRS,” he warned. More

Ask an Advisor

The life of a digital nomad looks even more attractive as return-to-office plans accelerate.
If you are ready to make the leap, here are some money moves to consider first, according to Sophia Bera Daigle, a member of CNBC’s Advisor Council.

On the heels of the Great Resignation, some workers are even more motivated to leave their job in search of a better work-life balance.
To that point, 56% of the workforce is likely to look for a new job in the year ahead, up from 51% in 2022, according to Bankrate’s 2023 job-seeker survey.

In addition to higher pay, workers said that more flexible hours and working remotely are now what’s most important to them.
“The nature of work is shifting for a lot more people,” said Sophia Bera Daigle, CEO and founder of Gen Y Planning, a financial planning firm for millennials.  

More from Ask an Advisor

Here are more FA Council perspectives on how to navigate this economy while building wealth.

Even among hybrid workers, many would prefer to spend more time working from home than they currently do, according to Bankrate.
Of those who are working from home some of the time, half say they’d like to do so all or most of the time. And roughly one third of those who are currently working from home most of the time said, if they had the choice, they’d like to work from home all the time.
Even before the pandemic, Bera Daigle, a certified financial planner and a member of CNBC’s Advisor Council, knew the daily grind wasn’t for her. After working at traditional financial planning firms since 2007, she quit to be free to work from wherever she wanted.

Despite fears of a recession, there are still plenty of opportunities out there for job seekers seeking a similar arrangement.
Workers have an edge in a cooling but strong job market, experts say, and that gives them the ability to push back on return-to-office mandates.

How to become a digital nomad

For many, the life of the digital nomad is the ultimate goal.
This lifestyle is becoming a lot more popular as the trend of remote working accelerates. The number of digital nomads in the U.S. increased 9% in just 12 months from 2021 to 2022, to a total of almost 17 million, according to the jobs platform MBO Partners.

If you’re contemplating a major career move so you have more location flexibility or don’t have to commute, there are a few things you need to do first, Bera Daigle said.
1. Pay down debt. Before leaving your current position, Bera Daigle recommends strengthening your financial standing by paying down debt, particularly high-interest credit card balances, to improve your monthly cash flow so you can set more money aside. 
2. Pump up savings. “Having emergency savings is really key,” she said.
Divert a portion of your salary every month to a separate savings account. Most financial experts recommend having at least three months’ worth of expenses set aside in an emergency fund or more if you are the sole breadwinner in your family.
3. Pad your retirement plan. If you have access to a 401(k) plan, “maximize contributions now because it could take a while to find a new job and you may not be eligible for a 401(k) right away,” Bera Daigle said.
Eventually, you may be able to roll the old 401(k) into your new workplace plan or an individual retirement account but there could be a waiting period of a few months — or even a year — before you’re able to participate.
4. Open a brokerage account. If you’ve met your short-term savings goals and your retirement contributions are on track, consider opening a taxable investment account to help bridge the gap, Bera Daigle advised. (Although brokerage accounts don’t have the same tax benefits as a workplace retirement plan, there are no income or contribution limits or restrictions on when funds can be withdrawn.)
For those new to investing on their own, start with an index fund that tracks the broader market, like the SPDR S&P 500 exchange-traded fund. Otherwise, mutual funds can be a great way to diversify your portfolio, although these may have higher minimum investments than ETFs.

Sophia Bera Daigle, CEO and founder of Gen Y Planning.

Even though Bera Daigle is now married with a young son and owns a home in Austin, Texas, she still values her ability to work from anywhere in the world.   
To afford extended trips as a family, Bera Daigle allocates money every month into “savings buckets” — a popular strategy for covering expenses such as travel and entertainment. She also leverages travel rewards and credit card points to save on airfare and hotel stays.
“If I’m not using my money to match my values to live a great life, then I’m doing it wrong,” she said. More

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More than $6 billion in scholarships are awarded to college students each year, according to an analysis of U.S. Department of Education data by higher education expert Mark Kantrowitz.
Applying for the awards can help students reduce their education debt.

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As families try figure out how to pay for their children’s college costs in the fall, scholarships are an important avenue to explore.
“Every dollar won in a scholarship could potentially eliminate a dollar borrowed for the student,” said Elaine Rubin, director of corporate communications at Edvisors.

More than $6 billion in scholarships are awarded to college students each year, according to an analysis of U.S. Department of Education data by higher education expert Mark Kantrowitz.
To begin, scholarships are gifts that don’t need to be repaid, and there are thousands of them offered. Some of the awards are based on merit while others are granted because of financial need.
Here’s what else you need to know.

Cast a wide net to find scholarships

Students can use free scholarship matching services to search for the awards, Kantrowitz said. Some of the services he recommends include Fastweb and the College Board’s Big Future.
“These websites match your background profile against a large database of scholarships, showing you only the ones for which you are eligible,” Kantrowitz said.

As part of its National Financial Literacy Month efforts, CNBC will be featuring stories throughout the month dedicated to helping people manage, grow and protect their money so they can truly live ambitiously.

Scholarship-listing books can also be helpful, he said: “You can find them in the jobs and careers section of your local public library or bookstore.”
(Make sure the book is not more than 1 or 2 years old, Kantrowitz cautioned, because many awards change or end.)
You can also try Googling for different scholarships, Kantrowitz said.
During your search, you’ll want to consider what sets you apart. For example, if you are the first person in your family to attend college, you might type in: “First-generation college student scholarships.”
According to the U.S. Department of Education, students also should ask both their high school counselor and the college’s financial aid office about scholarship opportunities.
The U.S. Department of Labor has a scholarship search database, too.
You should never have to pay to apply for scholarships, Kantrowitz warned: “If you have to pay money to get money, it’s probably a scam.”

Scholarships shouldn’t be ‘the entire plan’

According to calculations by Kantrowitz, around 1 in 8 college students has won a scholarship. The average award is around $4,200. Around 0.1% of undergraduate students received $25,000 or more in scholarships.
“Scholarships are part of the plan for paying for college, but not the entire plan,” Kantrowitz said.
Most families will still want to save for their children’s higher education, file the Free Application for Federal Student Aid, or FAFSA, form, and be wise about not borrowing too much.
Some scholarships are huge, though.
For example, the Regeneron Science Talent Search has a top prize of $250,000 for young scientists. The Coca-Cola Scholars Foundation offers $20,000 college scholarships for those “recognized for their capacity to lead and serve, as well as their commitment to making a significant impact on their schools and communities.”

Scholarships may reduce grants, trigger taxes

One thing to keep in mind when applying for the awards is that some colleges reduce their grants to a student if they receive one, Kantrowitz said. These so-called displacement policies are something to be on the lookout for as you weigh college offers — although some states have actually set limits on the practice.
And while many scholarships are renewable, you may be required to maintain a certain grade point average to remain eligible.
Kantrowitz recommends students search for scholarships every year. “Some scholarships are open to just high school seniors,” he said. “There are also some scholarships that are only open to students who are already enrolled in college.”

In addition, some scholarships may be taxable, Kantrowitz said. It all depends on what you use the money for.
The awards are shielded from taxation if they’re directed only at tuition and books. Amounts applied to room and board, transportation or other living expenses, meanwhile, can count as taxable income.
“They can also ask the scholarship provider for help,” Kantrowitz said. “Some will allow the student to defer their scholarship for a year to avoid needing to spend it on taxable expenses.” More

Ask an Advisor

If you’re ready to move abroad to work or retire, there are a few things to know, according to certified financial planner Jude Boudreaux, a member of CNBC’s Financial Advisor Council.
Roughly 9 million U.S. citizens were living abroad in 2020, according to estimates from the U.S. Department of State. 

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If you’ve dreamed of working or retiring abroad, you may be tempted by the possibility of cheaper housing or health care. But there are some things to consider before making the jump.
Jude Boudreaux, partner and senior financial planner with The Planning Center in New Orleans, works with several expat clients and said the “modern economy” has made living abroad more feasible for some Americans since the pandemic.

“There are a certain number of people who can work remotely and permanently,” which has opened the doors to living abroad, said Boudreaux, who is a certified financial planner and a member of CNBC’s Financial Advisor Council. 

More from Ask an Advisor

Here are more FA Council perspectives on how to navigate this economy while building wealth.

While a work permit for a local job can be challenging in some parts of Europe, moving abroad may be easier for Americans who are “self-sustaining” with remote work flexibility, Boudreaux explained. 
As for retirees, he has worked with clients on “both sides of the political ledger” seeking more choices and flexibility in their golden years, depending on shifts in the U.S. political environment. 
Roughly 9 million U.S. citizens were living abroad in 2020, according to estimates from the U.S. Department of State. 
For clients weighing the move, he often suggests spending a month in their chosen location first.

“It’s different to navigate the grocery store and health care treatments in a foreign language if you’re not super proficient,” he said.
Here are some other key things to consider.

Income reporting requirements add complexity

One of the key things prospective American expats need to consider is the yearly tax filing requirements, Boudreaux said.
While living abroad, you must pay annual U.S. income taxes on worldwide earnings, including your salary, business profits, investment income and more.
With measures such as the foreign income exclusion and tax credit, you’ll avoid double taxation. But there’s still the added time and expense of filing income taxes in two countries. 

A lot of times we’ll find people or banks that just won’t deal with U.S. citizens because they don’t want to have to deal with the reporting requirements.

Jude Boudreaux

Some financial institutions ‘won’t deal with U.S. citizens’

Some expats also must report foreign accounts to the U.S. Department of the Treasury annually via the Report of Foreign Bank and Financial Accounts, or FBAR. The rule applies to expats with foreign accounts with a total value exceeding $10,000 at any point throughout the year.
“A lot of times, we’ll find people or banks that just won’t deal with U.S. citizens because they don’t want to have to deal with the reporting requirements,” Boudreaux said.
The yearly tax reporting requirements have even led some expats to consider renouncing their U.S. citizenship, according to a 2022 survey from Greenback Expat Tax Services.

The exchange rate is ‘always a concern’

Another consideration is the possible change in your purchasing power when converting money between countries. “The exchange rate is certainly always a concern,” Boudreaux said.
While there are some investment options to help manage that exposure, “most of the time, it’s just kind of a risk that people carry,” he said. “Sometimes it’s better, and sometimes it’s worse.” More

Women & Wealth: A CNBC Your Money Event April 11 – Register at CNBCevents.com

Savers are poised to get better returns on their cash than they have in over a decade.
But many still don’t know they should be shopping around for the best interest rates.
These tips can help you get started.

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Over the last 15 years or so, the interest rates you could earn on your cash were very low.
And while the Federal Reserve has changed that with a recent series of interest rate hikes aimed at combating high inflation, many savers still do not know they could be earning more on their cash.

“So few people are earning competitive returns on their savings, despite an environment of very compelling returns,” said Greg McBride, chief financial analyst at Bankrate.
As more accounts provide 4%, 4.5% or even 5% interest and still rising, it’s surprising more dollars are not migrating to those returns, he said.
Just 22% of savers are earning interest of 3% or more on their accounts, according to a recent Bankrate survey. (The online report was conducted between late February and early March and included 3,674 adults.)
That includes 7% who are receiving interest rates of 4% or more.
Most savers are earning far less, with 24% of respondents earning between 1% to 2.99%, and another 24% earning less than 1%.

Some savers — 16% — are not earning any interest at all, while 14% said they don’t know if they are earning any returns on their cash.

The Federal Reserve just hiked rates by a quarter percentage point again, and could continue raising rates this year, as long as economic financial stability keeps up, McBride said.
One key reason why rates will still go up — inflation is still around 6% and not going down as fast as many had hoped, McBride said.
Yet regardless of what happens — whether interest rates go up or inflation goes down — both are a win for savers, McBride said.
What’s more, a possible recession on the horizon means it’s more crucial to have cash set aside and to be earning competitive interest on those balances, personal finance expert Suze Orman recently told CNBC.com.
“An emergency savings account is vital, absolutely vital,” Orman said.
Those who will be most vulnerable in a downturn are those who have no savings set aside, she said.
Experts generally recommend having savings that can cover three to six months of expenses in an easily accessible account.
More from Personal Finance:Don’t be fooled by these 9 common money mythsTipping in the United States has gotten out of controlMost adults make this simple money mistake
“It’s the first line of defense of recovering from a job loss and finding employment again,” Douglas Boneparth, a certified financial planner and president and founder of Bone Fide Wealth, a wealth management firm based in New York City, recently told CNBC.com.
The good news is there are steps you can take now to make sure your cash is poised to benefit from higher interest rates.

1. Open an online account  

Most people are not earning competitive rates on their cash either because they have left it in the same account for years or they simply do not have savings set aside, McBride said. While many people spend hours a day online, they are failing to look for better places to park their cash, he said.
“Take 15 minutes and open an online account,” McBride said.
There are high-yielding, nationally available, federally insured accounts available that require no minimum deposit or no online balance, he noted.
“That is literally available to anyone,” McBride said.
You may not want to limit your search to online savings accounts if it’s nonemergency money. Certificates of deposit, or CDs, Series I bonds, Treasurys and money market funds are also offering competitive returns for your cash.

2. Keep tabs on your money

Even after you’ve found a place for your cash, be sure to keep tabs on it.
“It’s worth checking back and seeing if your bank is still among the most competitive,” McBride said.
You may be able to find a better deal elsewhere for your cash as banks jockey to provide the most competitive rates. If you’re not paying attention, you may miss out, McBride said.

3. Make sure your savings are federally insured

Recent bank woes have put a spotlight on having Federal Deposit Insurance Corp. coverage.
And there’s good reason for that. No depositor has lost any insured funds due to a financial institution’s failure since the FDIC was established in the 1930s.
Generally, the agency covers up to $250,000 per depositor, per bank, per ownership category.
So it’s wise to make sure your balances are covered. Look for the FDIC logo in your bank’s lobby and on their website.
The FDIC also offers an online calculator to help gauge your deposit insurance.
If your deposits are with a credit union, they may qualify for insurance under the National Credit Union Association, which also offers an online tool for consumers to evaluate their deposit risks. More

Women & Wealth: A CNBC Your Money Event April 11 – Register at CNBCevents.com

Less than a quarter, 21%, of employers currently offer non-retirement financial benefits, according to a 2022 survey by the Society for Human Resource Management.
Such an employee assistance program, or EAP, offers support for workers who want help with budgeting, managing money and paying off debt. 
Research shows employees with access to financial education and tools are more likely to increase savings and feel less overwhelmed by debt.

Edwenna Ervin, known as “Eddie” to family, friends and colleagues, was living paycheck to paycheck when she first started working as a customer service agent for Verizon in 2016. She was struggling to come up with enough money to pay down debt.  
“No matter how large your paycheck is, if you don’t know how to save, you don’t know how to apply it to your bills or just manage it, it might as well be a small paycheck,” Ervin said.

One of her managers at the time told her about the company’s employee assistance program, or EAP, a free workplace benefit that offers support for workers facing financial challenges and other issues. The program provided resources and counseling to help Ervin with budgeting, managing money and paying off debt. 

As part of its National Financial Literacy Month efforts, CNBC will be featuring stories throughout the month dedicated to helping people manage, grow and protect their money so they can truly live ambitiously.

“It helped me work out a way to manage it better, so that I had a balance between what I needed to pay and what I needed to live,” said Ervin, who is now a senior engineer project manager at Verizon working remotely from her South Carolina home. 

Workplace benefits help manage daily finances

Edwenna Ervin works in her home office.

Less than a quarter, 21%, of employers currently offer non-retirement financial benefits, according to a 2022 survey by the Society for Human Resource Management. Companies report that some of the most important benefits to companies include those related to health, retirement savings and planning, and flexible work, but non-retirement financial benefits aren’t far down the list.
Many employers say they are listening to their workers’ needs.
“The traditional focus on financial wellness, which was almost exclusively around the 401(k) plan, it’s just not sufficient anymore. Our employees are asking for help with all aspects of their financial life,” said Kevin Cammarata, vice president of benefits at Verizon. 

“While you can pay workers more, that doesn’t mean they’ll be financially secure,” he said. “So increasingly, we as employers have to help employees do their jobs, earn their wages, but also manage their wages as well.”
Research shows that employees who have had access to financial education and tools, including videos, classes and coaching, are more likely to increase savings, feel less overwhelmed by debt and make progress toward their financial goals.

Not ‘a perfect solution’

Yet, financial literacy advocate Laura Levine says providing those resources through the workplace is “not the perfect solution” and may not reach the most vulnerable employees. 
“If it’s an ‘opt in’ [benefit], you sometimes miss the people who need this, because they’re worried that if they take the course, or take advantage of what’s being offered, that people will judge them for what they don’t know,” said Levine, president and CEO of the JumpStart Coalition, a Washington, D.C.-based nonprofit focused on financial education for students. 
“By the time you’re a working adult, you know, it’s a little bit late, you may have already gone down a path that’s going to be hard to correct,” she said.

Workers at Verizon headquarters in Basking Ridge, NJ.
Tara McCurrie, CNBC

Educating workers and families about finances

Ervin said she wishes she had learned more about budgeting and financial planning much earlier — for herself and her family. 
“We struggled a very long time unnecessarily, because we didn’t have the knowledge or tools or skills to do what we would need to do to make things better,” she said.
After going through the EAP, Ervin raised her credit score. She bought a house and a new car. And, now she helps her parents with their finances. 
Join “Women & Wealth,” a CNBC Your Money event, on April 11 as we explore ways women can increase their income, save for the future and make the most out of current opportunities. Register at cnbcevents.com for this virtual event. 
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