Building financial confidence
The impact of financial education
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Focus
Providing education can build financial confidence which ultimately improves financial capability and resilience. What financial education do you have in place? Are you making the most of what your existing benefit providers offer, and does it meet the needs of your workforce?
Financial education is a key component to good financial health. It builds financial confidence and capability and enables employees to make good financial decisions as well as encouraging positive behaviours.
We asked employees whether they had access to financial education as part of their benefits offering. Looking at financial health for each group, we saw a 42% increase in happiness for those that have education compared to those that don’t.
Question: Thinking about workplace benefits, which of these do you have available, and how important are they to you?
Financial education:
Budgeting is a fundamental of money management and again, financial education is critical here. Using the same metrics, we saw a 17% decrease in feeling of concern and negativity for those that have financial education. Looking to the future and thinking about their retirement, those with education were 34% more confident in achieving their desired outcomes than those who do not have access to that education and guidance.
Many providers offer financial education as part of their product offering. In reality, many choose to utilise the content from the Government Money Helper website which is readily available to everyone across the UK and therefore doesn’t add value to the benefits offering. Being able to offer education that meets the needs of the workforce, supported by the organisation can have considerable benefits for employees and as you can see above, would be well received and valued.