Why Financial Education Is Essential for Productivity

Did you know that 44% of people don’t have an emergency fund? More than a third of people responded to a survey saying they don’t have enough money to cover their needs and also save.

This shows that many people lack basic financial knowledge. Even if you earn a minimal salary, it is possible to manage money in such a way that you save a little for a rainy day. But, because this topic is not often taught in schools, many people have little to no knowledge about personal finances.

And that’s stressful! Very stressful!

Imagine what it would be like if you didn’t have enough money to go to the doctor if you got sick? This type of stress affects people. In fact, it affects your employees and, in addition, this stress affects productivity.

Financial education is important. Why? Here are 3 reasons why it is essential to offer financial training to your team:

Lower Economic Stress

The number 1 cause of stress is money. This stress affects your employees seriously, resulting in changes that make them less productive. For example, stress makes them forget their thoughts and lose their focus.

With training in personal finance, your team can take control of their money. The simple fact of knowing how to manage finances generates confidence and tranquility instead of stress.

Increase Employee Savings

In one study, attending an employer-sponsored retirement workshop increased the savings of employees who were at the lowest economic level by 27%. That is a very promising result!

With a little more savings, your employees will feel more peace and tranquility because they know that even if an unforeseen expense comes up, they can manage. In addition, many worry about their economic future. But, knowing that they are taking care of themselves with a retirement fund will also eliminate some of the burden.

Improve Employee Health

Stress can result in health problems such as headaches, high blood pressure, and gastrointestinal conditions. These conditions can affect productivity when your employees are working. But in addition, being sick can result in more days away from the office or store, which also affects the company in a negative way.

As already stated, financial education and training can lower those levels of stress that plague your employees.

The Bottom Line: Financial Stress Does Not Have to Kill Productivity

Offer your employees the gift of personal finance training. This benefit will return productivity to your workplace as your employees will show new focus and energy. Stress will no longer hold them hostage.

How can you do it? Here are 3 tips to bring knowledge and financial peace of mind to your workplace:

  • Offer a pension fund to your workers.
  • Create a small finance-themed library that your employees can use with resources that explain basic ideas.
  • Organize a formal training with a professional finance educator for your employees. This way they can learn more and get their questions answered by an expert.

Following these tips will not only lower your employee’s stress level. As an extra bonus, your employees will also be happy that they have been offered this training, increasing their motivation and job satisfaction.

Everyone wins with personal finance training in the workplace.

Get started right away! Don’t wait any longer to enjoy the benefits of financial education! Contact Elaine King today to schedule your training.

Sources:

Forbes

Financial Educators Council

CNBC

Small Business Chron