As it has been demonstrated, the current financial crisis still affecting some countries, including the US, is taking a toll on the health of many individuals. This in turn is affecting the productivity of employees. One way for people to solve this problem is to get personal financial problems afflicting millions of Americans across the country. Personal financial education looks into the ways of achieving financial freedom, regardless of your level of income. Getting financial education is important for everybody, in spite of your employment status, as explained in the following article by Esteri Maina
It does not matter how you earn your monthly income, whether employment or self employment, good financial education is important to help you budget effectively. People spend a lot of cash to invest in knowledge that is meant to help them finally get their dream career, but afterwards, very few spend on financial programs to help them manage the hard-earned incomes.
With modern human resource expertise, many employees can now access this free personal financial education from their place of work as opposed to the unemployed people. Employers today realize that increasing the employee benefits only increases the craving for more, because this does not clear the problem on the ground.
Extending more benefits to people who are financially illiterate creates more work related problems such as low productivity and efficiency. Over 78% of the working population is afflicted by one or more of the following:
- lack of money to take care of financial emergencies.
- Inability to provide a quality education, health care to their families.
- Failure to afford money for mortgages and ultimate poverty at retirement.
This has added to low profitability for the employers because such an employee can no longer be an asset to the organization, and instead will sell his brains and total concentration to his financial problems.
The dire effect of this kind of frustrated employee is craving for more, because he or she blames the employer for scanty pay and some can even do criminal behaviors at work place. This is why employers have now chosen the initiative to provide personal financial education because it is a basic life management skill that each and every employee has a right to achieve.
A quality personal financial education plan addresses the need to various income and educational levels of employed people, instructs practical knowledge that can be applied in their situation, and in a manner that inspires them to take action.
Aspects of the personal financial education plan
- It should teach employees how to determine their financial position trend, and the impact of acquisition of depreciation personal use assets as opposed to appreciating investment.
- Ii should teach the employees the common financial goals and how they must use them to make their precise personal financial goals.
- Cash flow management through budgeting is a key financing skill that must be underscored in addition to other ways of controlling personal expenditure.
- Personal risk management is yet another area that personal financial education offered by employers should touch on.Many families find themselves in dire financial state because of ignoring insurance needs and estate planning.
- Personal financial training can be structured as a voluntary one session course and even parents can be encouraged to attend for maximum impact.
Perhaps this is one of those things today’s companies should do as a social responsibilities to the general public that happens to be a direct asset in form of clientele. This way perhaps those who could be self employed can get a lifetime chance as well to learn how to manage their incomes and expenditures.
The HR experts should create a program with well-known financial professional with accredited potential, but those who are only interested in selling their specific products.
Note: personal financial education is a powerful benefit that is bound to generate both quantifiable, and non-quantifiable benefits to employers and employees.
You realize that as an entrepreneur, you cannot afford to mismanage that loan that you pay back with interest, or that profit that can reduce your chances of borrowing while increasing your personal growth and expansion opportunities.