We all believe that the goal of every great leader should be to provide clear direction and create opportunities to build trust and collaboration.
Yet, with closed-book management, employees may not be aware of the cost implications associated with their actions or decisions. According to Ipsos for Money Matters, “just under two-thirds of Americans (64%) are financially literate. In a financial literacy study (download required) by the TIAA Institute and the Global Financial Literacy Excellence Center at George Washington University, 37% of Gen Z respondents answered 25% or fewer of the financial literacy questions correctly.
This lack of awareness and understanding can result in inefficient use of resources, unnecessary expenses, and misalignment in priorities across the company and personally.
Oftentimes, positive change in this area comes down to shifting strategies and taking on a new perspective so that your people are engaged and are able to take ownership to manifest company success.
Today, I want to share 3 Tips to Promote Employee Financial Literacy that will support you and your employees in getting a comprehensive understanding, encourage them to go from employees to contributing stakeholders, and support them in becoming empowered to take action without the fear of hurting the company’s bottom line.
Let’s explore them!
1. Offer Training and Workshops:
Provide financial literacy training sessions and workshops for your employees. These sessions can cover a range of topics, from basic financial concepts to understanding your company's financial statements. Invite financial experts or consultants to lead these sessions and make them interactive and engaging.
2. Transparency and Effective Communication:
Foster a culture of transparency when it comes to financial matters. Share regular updates on the company's financial performance and objectives. Make financial reports and statements accessible to all employees and encourage them to ask questions. Hold open forums or Q&A sessions where employees can seek clarification on financial topics.
3. Personal Finance Education:
Recognize that financial literacy extends beyond understanding company finances. Offer resources and guidance to help employees manage their personal finances effectively. Research shows that employees who have had access to financial education and tools are more likely to increase savings, feel less overwhelmed by debt, and make progress toward their financial goals. This can include workshops on budgeting, saving for retirement, investing, and managing debt.
Financial literacy is an invaluable asset that can benefit both your employees and your organization as a whole. By investing in the financial education of your workforce, you empower them to make informed decisions, drive innovation, and contribute to the overall growth and success of your company. It's a win-win situation that truly pays off!
Thank you for reading this month’s newsletter!
As always, if you are looking for support or training on company finances for your workforce, let’s connect! Don’t miss out on the benefits of having a financially well-informed workforce. - schedule a call with me today!
Onward and Upward,
CEO, Utmost Potential
PS. Sharing is caring! Here is a link for you to download the three tips shared above 3 Tips To Promote Financial Literacy Among Your Employees