02 Feb 2022

Impartial financial education could help employees achieve their life goals

It's no secret that when people have control over their money, they’re more likely to achieve life goals, feel more secure and experience holistic wellbeing.

In the 19th century, American essayist Ralph Waldo Emerson voiced a sentiment that still rings true today: Finances are daunting, and when you don’t feel as if you know how to manage money, getting enough can feel like an insurmountable task.

Not feeling in control

Negative feelings about money aren’t limited to one group. People around the world on all income levels are concerned because they don’t feel in control of their financial situation, and life goals such as buying a home or retirement will have to be put on hold.

This can leave many employees feeling stressed, unhappy and unhealthy. But employee benefits that serve the whole individual – including robust, impartial financial education – can change that. In fact, employees who receive financial education are four times more likely to feel pride in their financial situation and twice more likely to feel hopeful about the future.

Concerns over money are all too common

Our global financial wellbeing report, The value of impartial financial education, found that 55% of people worldwide have the most basic aspirations with regard to money – they aspire simply to have enough to pay their bills. This number underpins the widespread lack of control that many feel in relation to money. In fact, 45% of people globally, feel anxious about their financial situation.

Financial anxiety prevents many people from living a fulfilling or sustainable life. In addition to fears around the ability to pay bills, 49% of people around the world are afraid they won’t have enough money to retire.

Everyone has financial goals

But financial anxiety doesn’t stop people from dreaming. Half of those surveyed globally said that they hope to save enough money to own a home, while 59% said they feel hopeful about their financial situation — that there’s a chance things could get brighter. This is because everyone, no matter their income, has financial goals.

Employees want to feel like they have the power and the knowledge to achieve make their dreams a reality – whether it’s buying a home, going on a trip, or saving for the future. There is a hunger for financial security; no one wants to worry about money or feel our of control. While the old saying ‘money alone can’t make you happy’ may be true, we can say for certain that stress has an adverse effect on a person’s wellbeing.

People can achieve their goals with financial education

Employees who receive financial education are 23% more likely to stay with their employer.

As well as traditional benefits such as healthcare and retirement planning, financial education is critical to ensuring the holistic health of your workforce. After all, employees earn money in exchange for the energy and time they give to an employer.

This article was provided by Nudge.