Why you must teach your employees about money

By chantelharris, 23 December, 2016

Large corporations and small businesses alike must teach their employees about money. More specifically employees should know about investment strategies and how to create one for their personal finances. There many people out there who are employed, earning an average salary and yet have no savings, no investments and no way of looking after themselves in the future. And that’s everyone’s ultimate goal – to be able to survive in the future when they’re no longer able to work or should they lose their job.


There are many different ways to skin the money cat


The most popular and, some would say, the best investment strategy to implement is to have a retirement annuity fund in place. However, this is not the only way to manage money for future wealth. What’s more, should life take a turn for the worst and if someone loses their job they need to be able to survive. Cashing in on a retirement fund will cost as penalties are incurred when drawing the money earlier than the end of the period of investment. If you teach your employees to invest their money in other ways that’ll offer a regular return on investment they’ll end up with a chunk of income coming their way at the end of each month or each quarter. If anything happens and they require extra income for whatever reason then the can rest assured it’s coming. By learning about investment strategies, even those who are earning a lesser income can look at investing. The best option for these employees is to find out more about what passive investment strategies are. These are designed to keep the buying and selling rates to a minimum. This type of investment strategy is aimed at anyone looking to build slow and steady wealth.


Trying to understand investment strategies is not easy


The financial world speaks a language that can sound very different to the average man in the street. Many people believe that investing is only for the wealthy. Yet if you ask around your office, you’ll find those very same people who believe that, are in debt. But debt is not for the poor, debt is a tool that should be used by those who can afford the interest rate and expected repayments. Unfortunately, the majority of people are suffering through some kind of debt and as an employer you must assist your staff in managing their money so they remain financially secure.


If you have the knowledge yourself, you should share it


As an employer you’ve had your fair share of learning how to handle money correctly. Whether you called in professionals or went on a course, you found your way around managing cash flow, profit margins and investments. It’s fair that you offer the same knowledge to your employees. Every single working person will tell you they want more money. Not every company is able to offer that though. However, employees can feel happy and fulfilled if their company spends time assisting them to achieve a comfortable life and a secure future. Educating employees on how to invest their money will result in them learning useful life skills that they can use forever. They’ll experience reduced stress because no matter how bad their situation might seem currently, they’re assured that it won’t get any worse and is being managed. Sometimes people just need someone to talk to and calling in a financial advisor to assist each employee might be the therapy necessary to help your workforce.


They didn’t teach this stuff in school


Unfortunately, the education system in school doesn’t cover the basics of managing your personal finances and investment options. Many school leavers live hand-to-mouth for the next couple of decades before they even think to investigate ways of saving money and accruing more wealth. So when considering chatting to your staff about their money you should start simple, childlike even. Make sure to chat about things that may seem obvious to you but are not common knowledge to everyone, especially your younger staff. You should cover topics such as how to get out of credit card debt, why they should shut down their retail accounts, how to understand different interest rates, how to start a safety savings fund and what investment strategies are viable to explore. Of course, calling in a professional financial advisor is first prize but will cost you whatever they’re asking for their time. However, this could be the most worthwhile investment your business could make as assisting your employees to live a financially stable life will result in a bunch of staff members who are loyal and grateful.




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