Financial Education: A financial wellbeing strategy that really works
In today's world, financial stability and wellbeing are crucial aspects of leading a fulfilling life.
However, despite its importance, many people still struggle with managing their finances. The impact is felt personally - and in the workplace. This is where financial education comes in - it is a strategy that can have a profound impact on your team’s financial wellbeing.
So, what exactly is financial education? In general terms, financial education involves learning about basic financial concepts and principles, such as budgeting, saving, investing, and debt management. It can be formal or informal and can be acquired through a variety of channels, including online resources and financial advisors.
Why does financial wellbeing work?
1. It builds a secure future
One of the primary benefits of financial education is that it helps individuals make informed financial decisions. With a better understanding of financial concepts and principles, individuals are better equipped to manage their finances and make decisions that align with their long-term financial goals.
For example, someone who has undergone financial education might have a better understanding of the importance of saving for retirement and the various retirement savings options available to them. As a result, they may be more likely to make contributions to a private pension. This builds financial security long-term.
2. It helps your team avoid costly mistakes
Another benefit of financial education is that it can help individuals avoid costly financial mistakes. Many people make financial decisions without fully understanding the consequences, which can lead to debt, financial instability, and stress.
However, with financial education, individuals are better equipped to make informed decisions that align with their long-term financial goals and avoid costly mistakes. This means there is less chance that employees will become stressed about their finances in the present moment, which leads to the main reason why financial wellbeing is a crucial benefit for every workplace:
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3. It helps them be more productive
Although supporting your team’s financial wellbeing is a morally good thing to do, it is also a very sound business decision.
No one works well when they are stressed about finances. Employees who are concerned about their money are much less productive in the workplace. A recent study suggests that financial pressure is becoming the leading cause of stress in the UK, with 34% of respondents citing it as the biggest cause of stress in their lives. One in ten employees who took the survey said that financial stress made them less productive when at work.
A workforce that is distracted by financial worries is much less likely to work at top efficiency. This may then have a significant negative impact on a company’s growth.
Instead, those companies who invest in their employees’ financial wellbeing can ensure they are doing everything they can to make their team as productive as possible by reducing the causes of financial stress.
When it comes to serving the needs of employees, as financial wellbeing providers we believe that the best way to deliver financial education is by providing your team with access to a selection of financial wellbeing resources via an online platform, that they can access anytime, anywhere.
But we go one step further. Rather than just educating their staff, we believe that financial education should be supported by services that help employees to solve their financial problems. Our Financial Wellbeing benefit provides employers with a comprehensive financial wellbeing solution that not only educates but provides crucial financial services that support your team in practical ways.
What is our Financial Wellbeing solution?
There are three services available as part of our solution,
- Financial Wellbeing Education,
- Financial Wellbeing Personal Debt Advice,
- Financial Wellbeing Lending,
Our Financial Wellbeing Education solution is an online platform that provides a database of educational materials on a range of topics, from budgeting to investment and retirement.
Our Financial Wellbeing Personal Debt Advice platform allows your team to access confidential advice to help manage their debts.
Our Financial Wellbeing Lending solution is there, providing financial support for employees when they really need financial aid.
Working together, these programs provide a comprehensive package of care that supports your staff, no matter their financial circumstances.
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Financial education: a strategy that works
Financial education is a powerful tool for achieving financial stability and wellbeing. By learning about financial concepts and principles, individuals can make informed financial decisions, avoid costly mistakes, and feel confident about their financial future. This has a knock-on effect in the workplace. Employees who are more financially secure are more likely to be productive, leading to a healthier business overall. Whether you're just starting out or looking to improve your employees’ financial knowledge, financial education is a strategy that can have a profound impact on their life and your business.
