According to the 2014 Consumer Financial Protection Bureau’s Financial Wellness at Work report, “In an economy where so many employees are stressed about money, providing talented workers with tools to address that stress can be a competitive edge.”
With a strong financial education program for your employees, you can harness that competitive edge. Less stressed employees are more engaged, more productive, and more likely to stay with your company. Building your program starts with five important topics.
There are many subjects that fall into the category of financial wellness. These include goal-setting, automating a savings plan, effectively eliminating debt, insurance basics, preparing to invest, how to qualify for loans, and building a good credit history. You can streamline this material by focusing on five key areas:
1. Budgeting — This is the foundation of proper money management. Your financial education program should provide basic instruction on creating a budget and encouragement to maintain one.
2. Credit management — Give your employees a free credit score and review with them what it means. Working one-on-one with each employee to educate and advise them on how to improve or maintain their credit will help them understand how their financial decisions impact them. ID theft is another area of credit management that should be covered.
3. Savings — Encourage thrift by teaching employees how to save for a goal and manage emergency funds. Offer tips for making it easier to save. Home ownership and saving for college are also important aspects to include in this area of your program.
4. Borrowing — Debt problems can impact an employee’s work and morale. Discuss ways to prevent debt problems and fix mistakes.
5. Investment and retirement — By understanding the stage of life that an employee is in, a program can be developed to address appropriate retirement planning.
Get your financial education program started now by downloading our free Moneywise Employees guide.