Why your financial wellness benefits should include micro-investing

For many working parents, putting money aside each month isn't easy, making generational wealth feel out of the question. But even as the cost of living climbs, the right benefits can help employees get started with a long-term savings and investment plan. 

A survey by U.S. Bank found that four in 10 parents among all generations believe their children will need financial assistance into adulthood. With some experts predicting the average home price to be over $1 million by 2040, along with rising costs of college,  unpredictable economic shifts and health issues, saving for the future now is more important than ever. 

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Yet saving for these milestones is more achievable than most people think: By investing $10 per week with 8% returns for the first 18 years of a child's life, growth could reach $1 million by the time the child reaches retirement, according to micro-investment platform FutureMoney. 

"A very modest deposit today could be life changing for kids later on," says Philip Barrar, co-founder and CEO of FutureMoney. The platform allows adult family members to contribute small amounts of money into tax-free accounts such as a Junior Roth IRA and 529 college savings plan. Users can also enter in their financial goals, like saving for a house, retirement, a vacation or college, and the platform will create a personalized investment plan that helps reach them.

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Make investing accessible

Perhaps the biggest obstacles for working parents is the idea that they don't make enough to invest, and that things like 529 accounts are too complex to manage. But benefit managers can help shift this mindset by bringing in financial offerings that provide the opportunity to invest small, comfortable amounts, along with automation tools and expert guidance to walk people through the process. It's a way to level the playing field for everyday Americans, Barrar says. 

"Not every employer has the ability to set up a retirement account for their employees' kids, [but] they do have the ability to provide tools, education and resources to help their employees live a better, more stable personal and financial life," he says. 

In turn, this strengthens the bond between employee and employer, says Barrar. During customer discovery done by FutureMoney, parents prioritized their children and families over themselves. Benefits that help them do this demonstrate that their company's goals are aligned with theirs, he says. For example, employers can go the extra mile by contributing to their employees' 529 plans. 

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A benefit for the entire workforce

In addition to its solutions for future and current parents as well as other family contributors, FutureMoney also offers categories tailored to couples and individuals, making it impactful — and a good recruiting and retention tool — for everyone from a fresh college grad to a grandparent. 

"Every user tells us that having peace of mind that everything is going to be OK, and having a plan in place, are the things that move the needle," Barrar says.