Reduce financial stress with a budget
Financial stress – One of the best places to introduce financial literacy is in the workplace. Many employers are already helping millions of adults understand their company benefit programs, compensation and other benefits and saving vehicles. So why not introduce financial literacy in the mix to help your employees achieve financial well-being?
Employers can make a big difference. And it helps business too, so there’s a big incentive for organizations to play a role.
A health and wellness study by Manulife, a Canadian benefits provider, found that employees who are financially prepared are 22 per cent more engaged in their workplace, 21 per cent more likely to enjoy their work, and 18 per cent more likely to say they are motivated to do their best at work.
There is evidence that improved financial literacy in the workplace leads to increased employee retention, productivity and profits. It lowers absenteeism and healthcare costs, and can increase participation in retirement savings plans.
How can employers help?
Every financial wellness program, whether new or established, should encourage employees to make a budget. A budget is a simple but highly effective tool. Having one lays out sources of income and monthly expenses, which can help someone commit to a spending plan, determine needs versus wants, set priorities for making purchases, and establish a plan to pay down debt and save for the future.
Research shows that less than half of Canadians have a household budget, but 93 per cent of people who do have one stick to it most of the time.
Companies can offer their staff a budget worksheet or point them to the Financial Consumer Agency of Canada’s online budget calculator to help them with this strategy. The website also offers more tools and calculators to help manage finances. Find more information online at canada.ca/financial-literacy.