6 advantages of providing financial education to your team

Financial stress can become a notorious problem for members of an organization. This condition influences not only your team's personal quality of life but can affect work performance and harm the company. However, some measures can reduce the impact of this phenomenon, among which financial education stands out.

Helping our team manage their finances more intelligently can make a big difference for them and our firm. Although economic crises can be real, it is also real that learning to properly manage resources is key to coping with them and avoiding calamities. Let's see how providing financial education to your team will help you!

What is financial education?

Financial education consists of learning to relate to money: handle it, manage it, invest it, and make the best decisions for its performance. It is about providing the elements of analysis to manage income and avoid waste and becoming victims of fraud. Its importance is such that even people who have large incomes can find themselves in financial trouble because they do not know how to manage them (for example: overspending, not having a provident fund, or taking risks without due analysis).

Offering your team financial education will provide financial security to them and their families since conveniently managing their income will avoid problems, reinforce their emotional well-being, and allow them to reduce their levels of frustration and stress about money. Thus, directly and indirectly, a financial education program will support the productivity of the organization.

Characteristics that a financial education program must have

A financial education program must consider, at least, training on the following topics:

• Budget: employees must learn to recognize their fixed and variable income and expenses in a given period.
• Discrimination between fundamental and dispensable expenses.
• Track expenses to know if you are experiencing money leaks: for example, small expenses, which are often not so small.
• Knowledge of the risks associated with credit.
• Recognition of possible investments that can generate additional income and improve finances.
• Information about emergency or savings funds and their importance to cover unforeseen events or meet personal objectives.

6 advantages of Providing Financial Education to your Team

Here we will show you some of the benefits that including financial education for your collaborators will bring to your organization:

1. Stress reduction

Financial problems are high on the list of stress triggers in people. This leads not only to an unfocused team but also to possible health risks. In this sense, financial education is a window towards the well-being of the organization and its employees, since by learning to properly manage their income and improve personal finances, employees will distance themselves from these types of situations that can trigger exhaustion. physical and mental.

2. Increased performance and productivity

By reducing economic pressure, employees will be in better spirits and will be able to focus more on their work activities. Not having your mind occupied with financial problems leaves room to focus on your commitments to the company and be more proactive in your work.

3. Reduction in absences

Stress can cause health problems. A team without so many worries or financial difficulties will be healthier. In this sense, the chances of absence due to physical or emotional illness, such as depression, will decrease. At the same time, lower absenteeism reduces the need to incorporate temporary replacements who must be trained and trained for the position, which has a cost for the company.

4. Development of a sense of belonging

Retaining talent in the organization is not an easy task. Therefore, it is important to promote employee loyalty. One way is to offer them benefits, and a financial education program is a great step because it demonstrates real concern for their personal and economic situation. Having staff who feel comfortable in their work can make a big difference in a company's results.

5. Increased confidence

By having a satisfied team without stress about money, the chances of them being predisposed to taking actions that harm the company decrease. For example, accessing resources that do not belong to them or sharing confidential information.

6. More financially self-sufficient staff

When people take control of their finances, they can prepare to face the future. The ability to face cases as diverse as the arrival of a baby, the course of a doctoral program, or the care of a medical emergency with one's resources can become a reality with the creation of an emergency fund. This will improve the confidence of your staff and reduce their need to request salary advances, loans, or other financial support alternatives that impact the organization.

Do not forget

Implementing a financial education program for an organization's employees is always useful, and more especially in the face of economic crises, since...

• Financial education helps reduce the stress levels of your staff, taking care of their health.
• A lower level of stress allows your collaborators to concentrate on their work and improve their productivity.
• Collaborating with the financial education of your talent not only allows you to be part of their well-being. It will make them feel valued, and satisfied and increase their sense of belonging.
• The support of financial education can be as important or more important than the increase in income since good management of resources can make a difference in their availability.
• More satisfied talent will be less willing to leave your organization, so you will avoid staff turnover and its costs.

If you want your employees to develop financial intelligence at work that gives them a greater quality of life through taking care of their finances, and for this to be reflected in their commitment and work performance, we invite you to also read about the types of leadership that Your collaborators expect you during the economic crisis!