What is a financial literacy training?
Financial literacy is the ability to understand how money and finances work. It’s a skill that teaches people about the connection between one’s income and expenses, how risk affects your money situation, and how to make informed financial decisions. Financial literacy is a broad term that can cover everything from understanding your bills to being able to invest in the stock market.
A financial literacy training simply means you will be trained what it takes to be financially literate in a formal setting.
Why must employers provide financial literacy training to your employees?
Financial literacy is an important skill for employees, managers and entrepreneurs to have at their disposal. It can help your company in many ways.
Financial literacy benefit #1
Employees are often lacking in the aspect of financial literacy and it would be beneficial if they were given more opportunities to hone their financial skills. Learning about finances can also help employees identify what investments might suit them best, or save for retirement or plan for major events in life. Not only will your employees be more knowledgeable, but they will also feel motivated and loyal to you as the employer because of the opportunities that you have offered them.
It’s been said that a company’s financial literacy is their key to the future. If you want your company to grow, then it’s important for all team members from your runners, clerks, executives up until senior management to learn how the company works – so they can be more productive and motivated.
Financial literacy benefit #2
Financial literacy training is not just beneficial for employees, but also for the employers. It improves profitability because in times of recession when consumers tend to minimise spending, your company will still have a loyal customer base (your employees!) who are committed to buying your products and services. If your company is listed on the stock exchange, your employees are your best investors who will remain continue to remain invested.
Increased financial literacy among employees can also lead to an increase in the likelihood of their personal savings and company profits. If your company is successful in encouraging your employees to save and reduce work redundancies, then your company will be able to reduce operating costs which can lead to higher profits.
How to Get Started with Financial Literacy Training in Your Company Today
Recession will come and go as it is a part of the market cycle, but our financial education and literacy programmes are here to stay. Employees are going to need it now more than ever. Consistent investment in training programmes can have a positive effect on company’s ROI by improving staff motivation and loyalty, increasing productivity by allowing employees to make more informed decisions about their finances, increasing staff retention rates and adopting new technologies that could help improve the company’s overall efficiency.
Organising financial literacy training for your employees will not only benefit you but your business as well, so you might as well reap the benefits now!
If you are a Registered Employer under HRD Corp, why not consider an evergreen training programme that can even impact the well-being of your employees’ welfare? Instead of sending them to the usual leadership and communications training (of course these are important too!), why not include something impactful like a financial literacy training programme which which will create a new generation of financial literate adults for the future?
Maximise your training budget and HRD Corp contribution by working with us to provide financial literacy to your employees. Contact us here and we’ll be in touch with the course outline and a meeting to discuss on how we could personalise an effective and powerful training programmes for your employees.