Why is financial education important?
Money is a stressful issue for many; helping your employees gaining financial literacy might benefit the company as it can lead to higher productivity.
If employers want healthy, productive workers, perhaps you should consider offering financial education on top of medical and mental health benefits. You dedicate a substantial amount of resources to employee benefits so you can attract and retain quality workers. Over half of employers offer some type of employee-funded pension, health benefits and/or access to life insurance to their employees. However, even with these financial benefits, most employers are still missing a major piece of the puzzle when it comes to promoting the financial well-being of their employees: financial education. While financial education has always been important, the pandemic propelled the need for financial literacy and wellness.
Whether they know it or not, you are feeling your employees’ pain. Almost three-quarters of workers with high financial stress said it distracts them at work, according to a 2018 Financial Health Network Survey. Financial health also affects your physical health. Stress of any kind can cause a huge number of health problems ranging from headaches and low energy to heart disease and high blood pressure. Financial problems can also lead to divorce and depression. Any of these issues can significantly impact employers through increased healthcare costs, higher turnover, poor attendance and low productivity.
Although increased financial stressors and awareness are causing adults to revaluate their financial wellness, only 28% work with a financial professional. This provides employers with a huge opportunity to fill this gap by providing holistic financial education programmes. In fact, more than half (51%) of adults think employers have a responsibility to assist them in improving and maintaining their financial wellness. This can be done through training and education on the multiple aspects of a person’s financial life. Not to mention, 60% of people said they’d be more likely to stay at a job if their employer offered financial-wellness benefits, according to the Financial Health Network Survey. Being financially healthy at work means better morale, more focus and higher productivity.
