Benefits of Financial Literacy Training for Employees

Your employees have a life outside of the workplace. Stressors in their personal lives can affect their performance at work. Financial worries are one of the biggest stressors most of us face. Companies can go beyond competitive pay and benefits with training to help to alleviate this stress. There are many benefits of financial literacy training for employees.

April is Financial Literacy Month

This isn’t just a social media fad. Many organizations will run special activities, write articles, and create resources to help people with their financial wellness. Even the President of the United States is supporting the efforts. He has proclaimed April 2021 as National Financial Capability Month.

Benefits of Financial Literacy Training for Employees

Companies have many different training needs that tie directly to the success of the business. Things like customer service, communications, compliance, and safety. Of course, these should be a priority.

When employees feel like they are drowning in a sea of overwhelming credit card debt, medical bills, student loans, etc. and they are worried about making ends meet, these worries can affect their productivity. Entry-level employees might be signing up for their first checking account and credit card while, at the same time, trying to understand the implication of the benefits of 401k, FSA, HSA, etc.

There are many benefits to the company that offers training on financial literacy to their employees.

Benefits

• Less stress. Financial obligations are one of life’s top stressors. Buying a home, handling the estate from the death of a loved one, and having a baby are examples of stressors that all have financial implications.

• Lower healthcare costs. Companies that offer wellness programs typically see savings tied to lower healthcare costs. Financial wellness can be part of this program. Lower the stress, lower the healthcare costs.
• Higher productivity. Employees under high levels of financial stress have higher rates of absenteeism. When employees have the financial tools to handle their unique challenges, they can be more focused and productive at work.
• Increased job satisfaction. The reality is that most companies do not offer this type of training. When you do, employees will see this as a sign that the company truly values them, and hopefully, will demonstrate higher levels of engagement and productivity.
• Improved morale. The salary employees earn from your company is likely the primary source of income for their families. By providing financial education in the workplace, companies can elevate their culture and demonstrate a commitment to employees. When more people have less stress and are engaged in the training, the overall employee morale will improve.

Refresh Training on Company Benefits

The first place to start is with your company’s benefit package. Every organization does onboarding training when a new employee starts their job. Going through a flurry of meetings, video calls, and having paperwork due immediately can be an overwhelming process.

Consider offering refresher training throughout the year.

• How to use insurance: Explain how to find a doctor in the network. Show a sample EOB form (Explanation of Benefits) and how to interpret it. This may be the first time some people have health insurance and the process can be very confusing.

• Re-explain 401k match: Re-explain how the match works and run the math. If a person is having financial difficulties, they may want to prioritize money to pay today’s bills rather than plan for a future 30 years away. Or, maybe they just received a raise and want to start a 401k account but it’s been a year since they were onboarded.
• Direct deposit: The Federal Reserve estimates 22% of Americans are “unbanked.” These are adults with no account at a bank or financial institution. The job with your company may be the first time they have a consistent salary. It may also be the first time where having a savings and checking account makes sense. Help them understand how the direct deposit works.

Financial Literacy Training Topics

HSI offers a full library of financial literacy training for employees. Our microlearning training videos are mobile-ready and could be accessed anytime, anyplace. Our topics include:

Checking

• Checking 101
• Understanding the fine print
• Checking skills
• Online and mobile banking
• Selecting the right checking account

Managing Credit

• Why you need credit
• Your credit history
• How to read a credit report
• Understanding credit scores
• Identity theft
• Debt management
• Avoiding credit problems

Savings

• Savings 101
• Why we save
• How to save
• Maximize your savings
• Selecting the right savings account

Types of Credit

• Credit 101
• Having credit cards as a young adult
• How credit cards work
• Credit card fine print
• Selecting a credit card
• Loan fundamentals
• Understanding student loans
• Understanding auto loans
• Understanding home loans

Additional Resources

• Financial Literacy Training Videos
• Financial Literacy Training Topics
• The Importance of Employee Financial Wellness Programs