How Financial Literacy Helps Your Business
Both business leaders and workers benefit from strong financial literacy skills. Here’s how:
- Competition. In a recent study, nearly three in four adults said they could benefit from advice and answers to everyday financial questions from a professional. And only about half of adults give themselves a grade of A or B on their knowledge of personal finance. That means means that employees who have financial literacy skills have a head start on the competition in the business world, and in life in general.
- Stress reduction. Employee stress, absenteeism, and burnout cost Denver-area businesses millions of dollars each year. Often, stress is a direct result of financial difficulties or crises. Employees who have the skills to manage their money effectively are less likely to face financial “crunches” and better equipped to deal with other sudden emergencies, like a broken vehicle or family illness. Less stress results in more productivity and fewer sick days.
- Better business. A reduction of employee stress is directly related to a business’ return of investment. Carrie Schwab-Pomerantz, president of the Charles Schwab Foundation, notes: “studies show that there is a strong correlation between financial stress and an employee’s productivity, which in the long run has a higher cost to the company.” Plus employees who know how to handle money can do so more effectively, helping the business’ bottom line should their roles integrate budgeting or forecasting.
Live, Custom Financial Training
Scheduling in-person financial training from a professional with a background in business offers your company innumerable benefits. Employees and leaders alike will learn how to manage money, understand banking, use credit wisely, handle taxes and insurance efficiently, leverage investment opportunities to their advantages, and avoid the pitfalls of consumer fraud and identity theft.
When you choose an in-person trainer, employees and leaders can ask questions in real time, supporting their own learning and helping others who may have similar questions. Follow-up sessions, one-on-one counseling opportunities, and supplemental materials like workbooks and webinars can all help your staff learn more about financial literacy on its own time as well.
One white paper revealed that 80% of employees who attend financial literacy training offered by their employers take proactive steps to improve their own financial health. These employees also reported significant stress reduction in their personal lives and a corresponding ability to pay better attention to the details of their jobs, especially when it came to questions of budgeting, paying bills or invoices, and keeping track of how their work supports the company’s bottom line.