Employers can make their workers feel like a valued part of a corporate family by offering perks above and beyond their weekly paycheck. One potentially effective and attractive perk is a free financial education. If done correctly, it can help a worker make the most of his or her hourly pay or yearly salary.
Employees Learn the Value of Saving for Retirement
Employers that offer a 401k may find that eligible employees don’t always take part in the program. They may also find that eligible employees don’t always make the maximum contribution each pay period. By offering fiscal literacy courses, workers can learn about compound interest and how contributing even a few dollars per paycheck could result in a more stable future.
Employees Learn How to Save for Home Ownership
Teaching an employee about the financial side of owning real estate may make it easier for that person to achieve his or her dream of home ownership. It may also help that person learn more about how real estate can be an effective investment tool both now and in the future. Ideally, a worker will be able to calculate their closing costs as well as calculate property taxes and insurance. Furthermore, they should be able to account for maintenance costs after they buy the home.
Help Your People Avoid Risky Loans
While car title loans can be a great way to borrow money in a hurry, they should be an option of last resort. Teaching people about unsecured personal loans or other options that come with lower interest rates can help them stay away from bankruptcy or daily collection calls. Employers benefit by keeping their people out of financial trouble because creditors can call them looking for those who may be behind on their debts.
Personal and Business Concepts Can Be Similar
If an employee can figure out how to create a personal budget, it may be possible for that person to create a business budget as well. If an employee can calculate the interest on a personal loan, he or she may be able to calculate the interest rate on a business loan too. Therefore, by teaching personal finance skills to your workers, it may help them come up with ideas as to how they can help the company save money.
Workers Feel Like You Care about Them
Those who are taught a skill as important as managing their money may feel like their employer truly cares about them. This may engender the type of loyalty that may keep morale high and turnover low. In the long run, any money spent on offering a financial education program may be recouped many times over because of the money saved through lower hiring and training costs.
Companies that teach their workers how to be good with money are teaching them a skill that will last forever. Therefore, those who may not have had good fiscal literacy in the past will be forever grateful for having a brand new insight into their finances. When done correctly, this may turn an employee program into one that benefits the company as well.