As the calendar flips to National Economic Education Month, it's an opportune moment for employers to pause and consider the broader implications of economic understanding. Not just at the macro level, affecting national and international policies, but at the micro-level that touches the daily lives of their employees. Economic education isn’t just about understanding the fluctuations in stock markets or deciphering GDP numbers. For us regular, schmegular people it includes personal finance – savings, investment, how to buy a house, etc.
1. Empowered Employees, Stronger Economy
National Economic Education Month emphasizes the importance of an economically informed population. Employees who are financially literate contribute to a more robust and resilient national economy. They're more likely to make informed decisions about savings, investments, and debt, which in turn stabilizes the broader financial landscape.
2. The Link Between Financial Stress and Productivity
A study from PwC’s Employee Financial Wellness Survey indicated that employees who are stressed about their finances are more likely to be distracted at work. This stress can lead to reduced productivity, increased absenteeism, and even health-related issues. By offering personal finance training, employers can alleviate some of this stress, ensuring a more focused and efficient workforce.
3. Retention and Loyalty
When employees feel that their employers care about their well-being, they are more likely to be satisfied with their jobs and stay longer. By offering personal finance training, companies are sending a message: "We care about your financial health and future." This gesture can boost employee morale, loyalty, and retention.
4. Skill Development for Future Roles
Understanding the basics of finance isn't just useful for personal budgeting. It's a crucial skill for many roles within an organization, from project management to executive positions. By investing in personal finance training, employers are also nurturing employees' growth into roles that require budgeting, forecasting, or financial analysis.
5. A Holistic Approach to Employee Benefits
Modern employees are looking for more than just a paycheck. They're seeking a holistic employment experience that supports their overall well-being. Offering financial education as part of a comprehensive benefits package can set a company apart in the competitive hiring landscape.
As you can see, National Economic Education Month isn’t just a time to reflect on the nation's economic policies or trends; it's a call for everyone, including employers, to recognize the value of financial literacy. By equipping employees with personal finance skills, employers are not only bolstering their workforce's confidence but are also investing in the health of the company, the economy, and society at large. Let's make economic education a priority, not just this month but throughout the year.
If you are interested taking a free personal finance course, check out these links:
McGill Personal Finance - https://www.mcgillpersonalfinance.com/
University of Illinois - https://www.coursera.org/learn/financial-planning
Question: Does your company provide or make available to you any personal finance educational resources?