Why You Should be Training Your Employees in Financial Literacy

Do you know what financial literacy is? It’s the ability to understand and use financial information. This includes everything from reading a credit report to creating a budget.

Unfortunately, financial literacy rates in the United States are quite low. A recent study found that only 38 percent of adults could answer four or five questions on a basic financial literacy test correctly.

This lack of financial literacy can have serious consequences. Employees who don’t understand financial concepts are more likely to make poor decisions that can impact their own financial well-being as well as your company’s bottom line. 

That’s why it’s so important to provide financial training for your employees. Here are many reasons why you should be training your employees in financial literacy:

  • Improve financial well-being: Employees who are more financially literate tend to have better financial wellbeing. This includes everything from having less debt to being able to save for retirement.
  • Reduce financial stress: Financial stress can take a toll on employees’ productivity and health. By teaching financial literacy, you can help your employees reduce their financial stress and improve their overall quality of life.
  • Increase productivity: Financially stressed employees are less productive at work. By helping your employees become more financially literate, you can increase their productivity and improve your bottom line.
  • Enhance decision-making skills: Employees who understand financial concepts are better able to make sound financial decisions. This can impact everything from purchasing decisions to investment choices.
  • Reduce financial mistakes: Employees who are financially illiterate are more likely to make financial mistakes. These mistakes can range from spending too much money on credit cards to not saving for retirement.
  • Manage money better: Employees who are financially literate know how to manage their money better. This includes everything from budgeting to investing.
  • Protect against financial fraud: Financial fraud is on the rise, and employees who aren’t financially literate are more likely to fall victim to it. Teaching financial literacy can help your employees protect themselves against financial fraud.
  • Avoid financial scams: Along with financial fraud, financial scams are on the rise. By teaching financial literacy, you can help your employees avoid financial scams and protect their hard-earned money.
  • Understand financial products: Employees who are financially literate are better able to understand financial products, such as mortgages and credit cards. This can help them make wise decisions about which products are best for them.
  • Improve company’s bottom line: Teaching financial literacy can have a positive impact on your company’s bottom line. Employees who are more financially literate are less likely to make financial mistakes that can impact the business.

As you can see, there are many reasons why you should be training your employees in financial literacy. At 101 Financial, they offer financial wellness programs that can help your employees learn about financial concepts such as budgeting, saving for retirement, and investing. Contact them today at 303-408-6629 to learn more about their financial literacy programs and how they can benefit your company.