Money
Awareness
Program, LLC
A MAP for Building (and Sustaining) Financial Confidence and Well-
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A Trusted Source for Financial Strategies to Reduce Debt, Repair Credit & Begin to Save
Workplace Financial Literacy: Why the workplace?
Charles R. Schwab chairs the President’s Advisory Council on Financial Literacy. In the Council’s first report dated January 2009, they detailed “The Increasing Importance of Financial Literacy in the Workplace.”
Many workers today simply do not have the skills, knowledge or assistance necessary to meet their financial challenges. When individuals/employees are worried about debt and other personal finance issues, they have more difficulty focusing on their jobs. They attempt to resolve their financial challenges at work. They make calls to creditors, pour over their finances agonizing over what bills to pay, or seek higher paying employment.
Outside of job loss or high medical bills, individual or personal economic stress is usually generated by overspending. Part I- pages 1-2 in the Money Awareness Program (MAP) eBook discusses the reasons why individuals overspend. Knowing and avoiding these six reasons of overspending allows individuals to start a process of being able to reduce their personal economic stress.
Personal economic stress is estimated to cost businesses as much as $300 billion a year in lost productivity, increased absenteeism, employee turnover, and increased medical, legal and insurance costs, according to the American Institute of Stress. Financial Literacy Partners, LLC, has calculated that employee financial stress costs businesses $15,000 per year per affected employee.
Personal economic stress is estimated to cost businesses as much as $300 billion a year in lost productivity, increased absenteeism, employee turnover, and increased medical, legal and insurance costs, according to the American Institute of Stress. Financial Literacy Partners, LLC, has calculated that employee financial stress costs businesses $15,000 per year per affected employee.
The situation is exacerbated by the current economic crisis. “My paycheck and home value is shrinking and gas is $4 a gallon.” This economic down-turn is certainly the worst since the Great Depression. This current economic crisis with its unemployment approaching 10% and the ever expanding home foreclosures have forced families/individuals into financial situations where they have relied on credit cards until they become exhausted; leaving them deep in debt.
In 2008, the Society for Human Resource Management (SHRM), the world’s largest HR organization, found in a survey of members that the effects of economic stress are real and growing. In the previous 12 months, members had seen a 26% increase in employees having their wages garnished by collection agencies; a 39% increase in requests for 401(k) plan loans; a 20% increase in requests for pay advances; and a 14% jump in employees reporting having lost their homes. In a series of online polls taken by Harris Interactive for the American Psychological Association over the past year, the number of respondents citing economic worries as their top cause of stress has continued to rise – from 66% in April 2008 to 82% in November 2008.
In 2008, the Society for Human Resource Management (SHRM), the world’s largest HR organization, found in a survey of members that the effects of economic stress are real and growing. In the previous 12 months, members had seen a 26% increase in employees having their wages garnished by collection agencies; a 39% increase in requests for 401(k) plan loans; a 20% increase in requests for pay advances; and a 14% jump in employees reporting having lost their homes. In a series of online polls taken by Harris Interactive for the American Psychological Association over the past year, the number of respondents citing economic worries as their top cause of stress has continued to rise – from 66% in April 2008 to 82% in November 2008.
Surveys consistently find that the public feels overwhelmed and intimidated by the volume of financial information in the marketplace. The result of this intimidation is paralysis; inaction instead of action. However, employees appreciate receiving financial education in the workplace because they view their employer as a trusted source and financial instruction becomes convenient and accessible for them.
In return, a financially literate workforce is likely to be happier, more focused and productive, and have learned skills they can apply to their jobs.
Workplace education benefits both the employee and the employer. The availability of financial education opportunities can become a valuable benefit that helps attract and retain the best employees. Employees who are financially healthy are more productive. They are absent less often, spend less time at the workplace dealing with personal financial crises, and earn higher job performance ratings. The need and demand for workplace education has been documented. In a 2008 survey of chief financial officers and other senior executives by CFO Research Services and Charles Schwab, 80% of respondents said that financial literacy among employees was the most significant challenge they face.
In other Charles Schwab research, employees gave their employers solid marks for providing 401(k) education and for encouraging participation. Respondents to the survey also indicated overwhelmingly that they would like other assistance, including access to financial planning experts, seminars on personal finance, and savings and budgeting tools.
Younger employees were particularly interested in how to navigate financial planning for such key life events as purchasing a first home, getting married, and starting a family. Employees of all ages were worried about debt management, including avoiding or resolving credit card debt, and saving for the future.
In return, a financially literate workforce is likely to be happier, more focused and productive, and have learned skills they can apply to their jobs.
Workplace education benefits both the employee and the employer. The availability of financial education opportunities can become a valuable benefit that helps attract and retain the best employees. Employees who are financially healthy are more productive. They are absent less often, spend less time at the workplace dealing with personal financial crises, and earn higher job performance ratings. The need and demand for workplace education has been documented. In a 2008 survey of chief financial officers and other senior executives by CFO Research Services and Charles Schwab, 80% of respondents said that financial literacy among employees was the most significant challenge they face.
In other Charles Schwab research, employees gave their employers solid marks for providing 401(k) education and for encouraging participation. Respondents to the survey also indicated overwhelmingly that they would like other assistance, including access to financial planning experts, seminars on personal finance, and savings and budgeting tools.
Younger employees were particularly interested in how to navigate financial planning for such key life events as purchasing a first home, getting married, and starting a family. Employees of all ages were worried about debt management, including avoiding or resolving credit card debt, and saving for the future.
“No one can take care of your money better than you.” MAP performs two hour seminars focused upon reducing debt, repairing credit and saving for the future. MAP uses its eBook as its workplace and individual financial educational foundation. For individuals who are not able to attend a workplace financial educational seminar, they can certainly benefit by purchasing the MAP eBook and following the simple strategies defined there. All seminar attendees and purchasers of the MAP eBook are entitled to a free fifteen minute phone consultation for their specific financial obstacles, and again with no hidden agenda, just honest information.
For more information, contact
Jude Gilford, Owner
Money Awareness Program, LLC
P.O. Box 31022, Tucson AZ 85751
520-400-8304
Jude@MoneyAwarenessProgram.com
"We do not share customer information with third parties. Ever."
Jude Gilford, Owner
Money Awareness Program, LLC
P.O. Box 31022, Tucson AZ 85751
520-
"We do not share customer information with third parties. Ever."
MAP Gives Back to the Community
Community Justice Boards
Financial Education Collaborative of Southern AZ
Community Justice Boards
Financial Education Collaborative of Southern AZ
