Employers should invest in financial literacy to help their employees become more knowledgeable about how to manage their money day-to day. Financial literacy and financial wellness are topics which must be addressed to maintain a healthy work environment. But financial literacy is only step one, of the financial wellness equation. Once employees receive the education necessary to understand how and why they should handle their finances responsibly, then they must be coached to implement strategies that achieve financial well-being. In other words, helping your employees does not stop with offering financial literacy. It’s a starting point for a process that’s ongoing, and one where employees must be held accountable in some way for not only absorbing the knowledge but actually putting it into practice and reaching their goals.
Employee Assistance Programs (EAPs) aside, employers aren’t alway equipped to provide financial therapy sessions. And financial literacy programs don’t have to be therapy, per se. However, they can help employees get a sense of control over their money and begin to take charge of their financial lives by changing their relationship with the money.
Financial literacy can be taught, and given that knowledge, employees can be coached to use their know-how to achieve financial wellness. So while financial literacy and financial wellness are not the same thing, they do go hand in hand. And in this case, it’s as much what your employees know as what they do with that knowledge. As an employer, you can help your employees not only become more financially literate, but more confident when it comes to managing their money.