Written by: Casey Stegman, SVP of Strategic Planning & Business Development
Financial literacy is a position of health, not wealth. There are tens of thousands of people who are wealthy but are not living financially responsible lives. Alternatively, there are just as many people living paycheck-to-paycheck who may be able to get to financial wellness sooner than they realize. One of the biggest issues among people of all socioeconomic backgrounds is a lack of financial literacy. Fortunately, businesses can now implement financial literacy programs to improve the financial health of their employees.
Financial Literacy 101
Financial literacy is a bit different for everyone, but the basics of financial health are largely the same across the board. It is all about the knowledge to know how you can and do use your money. This can include basic household budgeting and ensuring that you are earning more than you are spending. It can also relate to more long-term tactics like investments and retirement savings. However, more than anything else, financial literacy programs for adults focus on teaching people that having a plan is critical.
For a more concrete examination of financial literacy, here are a few examples of what a financially literate person will likely know:
- Balancing income versus expenses
- The power of your credit score
- The positive and negative effects of compounding interest
- Basic concepts and principles of investing (i.e. the difference between stocks and bonds, a Roth IRA versus traditional IRA, the benefits of diversification, etc.)
While this is not a comprehensive list, it does offer a blueprint for what financial literacy looks like and what you can expect from enhanced financial education services.
Financial Literacy Programs Increase Employee Wellness
Financial literacy plays a key role in increasing employee wellness. As a result, thousands of businesses have invested in financial literacy programs for their staff, offering various services and educational resources, from workplace finance seminars to retirement benefit trackers. In any case, studies have shown that employers who provide financial literacy programs often see significant improvements in employee engagement, productivity, and overall well-being. At the same time, these programs can help reduce financial stress, which often makes employees more content with their employers, thereby reducing turnover rates.
Helping Your Employees Learn & Grow With Mentoro
If your business wants to benefit from financial literacy programs, Mentoro can help. We partner with companies who understand the advantages of financial literacy for their employees. That said, we are a company focused on individual coaching. So, in addition to many of the standard services associated with improving financial wellness for employees, we also offer all of the following:
- Basic financial literacy coaching and training
- Proprietary software that gives each employee access to resources like podcasts, e-books, and virtual meetings with financial mentors.
- One financial mentor for each business to help answer questions, run group seminars, and provide one-on-one coaching.
- A customizable approach based on the needs of the business and its workforce
If you are currently in the market for a financial wellness company or you want to learn more about financial literacy programs in general, be sure to contact the experts at Mentoro today!