Financial stress can become a workplace issue
Why Financial Literacy Belongs in the Workplace
Organisations invest heavily in developing their people. They provide leadership training. They develop technical skills. They teach communication, customer service, compliance and professional performance.
But there is another important area of employee development that is often overlooked:
Financial literacy.
Why should an organisation be concerned about whether its employees understand money? Because financial pressure does not stop at the workplace door.
Employees bring their whole lives to work. Financial difficulties can affect concentration, relationships, decision-making and emotional wellbeing. An employee who is constantly worried about debt, monthly expenses or an unexpected financial emergency may find it difficult to focus fully on work.
This does not mean that employers should become responsible for their employees' personal finances. It means that organisations can recognise financial literacy as part of holistic employee development.
Financial literacy is more than budgeting
A financial literacy programme should not simply tell employees to "spend less." People need to understand the decisions behind their spending.
They need to consider:
• Needs versus wants
• Debt and its consequences
• Saving and emergency planning
• Financial priorities
• Long-term planning
• The influence of values and social pressure
• The consequences of today's decisions on tomorrow
These are life skills. And life skills influence workplace performance.
Financially informed employees can make better decisions
Financial literacy can help people become more aware of their financial circumstances and make more informed choices. For an organisation, this forms part of a broader investment in people.
Employee development should not only ask: "What skills does this person need to do the job?"
It can also ask:
"What does this person need to manage life responsibly while doing the job?"
That is where financial literacy belongs.
AIPD's approach
At the Africa Institute for Personal Development (AIPD), Financial Literacy forms part of a broader personal development philosophy.
We do not begin with financial products. We begin with the individual.
Participants are encouraged to understand how beliefs, values, attitudes and decisions influence financial behaviour.
From there, practical financial management becomes much more meaningful.
The objective is not simply to produce people who can complete a budget.
It is to help people become more aware, responsible and intentional in the way they manage their financial lives.
An opportunity for organisations
Financial literacy can form part of an organisation's broader employee development, wellness, leadership and personal development initiatives.
It can be offered to employees, young professionals, students or emerging leaders.
Because developing people means looking at the whole person.
Technical competence helps people do their jobs.
Professional development helps them perform better.
Financial literacy helps them manage an important part of their lives.
The workplace is therefore an important environment in which financial literacy can be encouraged.
To explore the AIPD Financial Literacy Course and how it can be used within an organisation, visit the AIPD website COURSES page.
General education only. This content is for information and learning and is not financial, investment, tax or legal advice. AIPD is not an authorised financial services provider and does not recommend specific financial products. Please consult a licensed financial adviser about your own circumstances.