3 reasons why financial literacy should be on your mind
If you’ve been with us for a while, you know that we talk a lot at TrueConnect about how Americans are struggling with money–staying out of debt, paying off credit cards, saving for the future, investing properly…
Not until recently have many schools started implementing financial education into their curriculum.
This is great for the incoming generation and future generations, but Gen-X and millennials and some Gen-Z, those who are in the working world now, are the ones who need the education the most.
Financial literacy is something everyone should be talking more about, especially employers…
Define “financial literacy” please
According to Investopedia…
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. The meaning of financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be because education is the key to success when it comes to money.
The key here is “the earlier you start”.
As mentioned, our education system hasn’t prioritized financial education until recently. This means we have some education that needs to happen now.
One problem with that…
Many think that education alone is enough to bridge the gap and fill in the missing pieces. Sure, offering programs that provide financial counseling and guidance are helpful, but they are missing a really important component. They are missing a solution to the problem right now.
What kind of solution?
When we talk about solutions here, we are talking about something tangible. Something that an American can take right now and start his or her journey to get out of debt, pay off credit cards, save more or invest smarter.
And when you offer programs to your employees that focus on financial literacy in this way, your organization experiences tangible benefits as well.
Benefits such as…
Elevated company culture
When employers provide benefits that help an employee with more than the work in front of them, employees feel valued and appreciated. When all of your employees feel more valued and appreciated, your company culture becomes more engaging and active.
You hired your employee because you felt something special about their abilities and that should continue to be at the forefront of every decision you make, especially around what benefits you offer.
Increased employee productivity
7 out of 10 American workers say financial problems are their most common stressor. And 39% admit that they spend at least 3 hours a week preoccupied or distracted by their financial issues while at work.
Financial stress is one of the biggest distractions while in the office. When financial wellness programs are offered as an employee benefit, employee productivity increases.
Increased employee satisfaction
Employees with more financial distress are absent from the workplace more often, display less commitment to their organization, and are less satisfied with their pay, regardless of the amount of money they make. More and more research points to the positive relationship between financial wellness and worker satisfaction.
So, will financial literacy become an important part of your benefits program for months to come?
To learn more about TrueConnect’s Financial Wellness Platform, with access to financial advisors, emergency savings plans and loan options for your employees, click here.