Financial literacy is indispensable. The ability to understand financial skills, like money management, budgeting, and investing, and use them effectively, is especially crucial now that the US is in an economic crisis. Already, this crisis is causing unprecedented financial stress, so much so that 54% of Americans are now worried about not having enough savings, while another 48% are worried about their bills. Worryingly, 9 in 10 Americans admit to being stressed out financially, with 2 in 5 expressing concern about their financial future.
Indeed, these tough times have amplified the importance of financial literacy, and have once more emphasized why it should be a concern even in places of work. With that being said, here are three specific reasons financial literacy matters in the workplace:
3 Reasons Financial Literacy Matters in the Workplace
Financial literacy helps boost productivity
Some 7 in 10 American workers get stressed by financial problems, and nearly 4 in 10 (39%) admit to being distracted at work by those issues. The result is a dip in productivity, frequent absenteeism, sloppy work, pay dissatisfaction, lack of engagement, and decreased commitment to the organization.
Now, financial literacy won't solve all financial problems. But it can make employees money savvy, to the point that they can minimize these problems and mitigate their effects. The result is a reduction in stress that can boost productivity, as your employees are able to focus more on their work rather than on their money problems (therefore allowing them to perform at a high level).
Financial literacy saves you money
Stress can lead not only to frequent absenteeism, but also presenteeism, or a phenomenon in which employees are present but aren't performing at full capacity. Presenteeism, in turn, costs business some $1,500 billion annually, while absenteeism costs business around $150 billion per year.
Either way, the cost is staggering, and you can lessen it by reducing your team's financial worries, which are the chief stressors of American workers. Eliminating financial stress will also minimize stress-related conditions, like hypertension, and help save your company in healthcare costs.
Financial literacy improves your team's business acumen
Financially literate employees aren't just money savvy; they're also business savvy, as they have a nuanced understanding of the interplay between money, people, technology, and business processes.
With this understanding, your team is likelier to act responsibly, knowing full well that what they do will impact the organization's financial health. In the same manner, they are likelier to make informed decisions that will benefit the company's bottom line. They will also be more inclined to spend prudently and take care of office items to limit expenses that could become liabilities for the business.
3 Ways to Ensure Financial Literacy in the Workplace
Now that you know why financial literacy matters in the workplace, here are three ways to ensure it:
Offer financial education programs
A great way to ensure financial literacy in the workplace is to have your workforce go through continuous financial education beyond the usual 401(K) plan lectures. This education must address a wide range of finance-related topics, including personal finance, and should offer self-assessments that will make everyone aware of their strengths and points for improvement when it comes to finance.
It is equally important that you vary the teaching modalities to allow for both synchronous (employees learning all at the same time) and asynchronous learning (employees learning individually on their own time). For the former, for instance, you can use us to help you in organizing Virtual Lectures while physical distancing is still being encouraged. For the latter, on the other hand, you can upload on the cloud modules on finance for your employees' perusal during their free time.
Help your team break bad finance habits
One of the hallmarks of financially literate people is that they’ve broken bad financial habits, like overspending, not budgeting, and overusing credit cards. But before one can break these bad habits, it is crucial to understand why they have them in the first place, and if there is an underlying disorder causing it. Erika Rasure, Ph.D., assistant professor on the online MBA in financial services program at Maryville University, says that these underlying conditions manifest in bad financial habits, which can then ruin anyone’s finances. Dr. Rasure explains in a Bustle article on money disorders: "Money disorders are best characterized as a combined emotional and spiritual imbalance that creates a propensity to engage in problematic money behaviors.” These include compulsive buying, hoarding, and workaholism. With this in mind, it is vital that you guide your team not only in breaking these bad habits, but also in finding out if there's an underlying problem. And where possible, bring in professional help, or refer your team to financial experts who can address the matter.
Offer enticements
The Forbes Finance Council said it best: "Incentives increase motivation and engagement." Suffice to say, you must give your employees enticements to take part in financial literacy improvement.
These enticements needn't be anything grand, as something as simple as gift cards and additional paid leaves might just be the motivation your team needs in order to take financial education seriously. But it is imperative that you provide learning opportunities for your employees, like having on-site financial planners and hiring a third-party finance course provider such as LinkedIn Learning.
The goal of any business owner should be to have a happy, committed, and productive workforce. And as outlined above, one way to ensure that is by improving employees' financial literacy, so they can improve their financial health and get rid of many of the financial issues that stress them out.
Written exclusively for www.executivebound.com By Amaia Calnan
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If you want to explore how we can support you, let's connect over a complimentary strategy call. I will give you my undivided attention and help you identify your "Why" and most significant challenges quickly. We'll even begin to strategize on the right plan of action that will support you moving forward.
Whenever you're ready, we want to serve you with what you need support the most! Here are some ways in which we can do this together: #1 - Want to become our partner in populating the world with great leaders? Here is how! If you know someone in your trusted network of friends and colleagues who can use the support of a coach like me, I would like to invite you to check out my 10% referral program. Get the details from our Affiliates & Referral Partners page. #2 - Check out our virtual, proven career and leadership training: Learn the #1 success secret to becoming the highly impactful, influential leader you are meant to be without sacrificing your well-being. Spots are limited. Get the details here: www.fearlessledershipmastermind.com. #3 - Develop your Personal Brand with our two-week virtual program: We share the exact steps to stand out in a new job market, confidently, despite today's economy. Get the details here: www.personalbrandingmasterclass.com. #4 - Coach with us, virtually, privately, one-on-one: Join one of our private coaching programs, designed to address your specific challenges and goals, accommodating your busy schedule. Our clients earn promotions, higher pay, transition into new roles and industries they love, and enjoy a higher level of financial, emotional, and even spiritual well-being. They "do the work" and see the results! 100% virtual, join us for a complimentary session: www.executivebound.com/get-started. #5 - Introduce us to your company to deliver virtual and live motivational talks and leadership training: We partner with organizations and individuals over a wide range of industries, providing the support and structure to develop talent and grow your leadership teams. Please email us at info@executivebound.com, and let's connect.. #6 - Read our book: Fearless Women at Work: Five Powerful Strategies to Thrive in Your Career and Life! This book’s sole purpose is to ignite your personal power to pursue the life of your dreams by applying five practical strategies in a unique process named C.A.R.E.S. Get your copy and BONUS Book Club Guide companion today at www.executivebound.com/book. #7 - Read our blog & share it! Keep your mind fresh with ideas. Retool with strategies to navigate challenges at work and in life. And take action that will propel you forward. Knowledge and execution are power. Visit our blog, and if you enjoy the articles, please share them with your friends and colleagues.
About Dr. Ginny A. Baro
Dr. Ginny A. Baro is a sought-after international motivational speaker & leadership coach, a career strategist, and #1 bestselling author of Fearless Women at Work.
Ginny specializes in partnering with organization to develop leadership teams at all levels of management. And she supports individuals navigating a corporate hierarchy or moving into an entirely new phase of their career. She has successfully facilitated live and virtual leadership training and coaching programs for individuals and Fortune 500 companies with over 140,000 employees and delivered keynotes impacting international audiences larger than 7,000. To learn more, visit ExecutiveBound.
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So this is your invitation and your challenge. Consider: what would that structure look like for me if I were r running my own business while working from home, and as an employee of a company?
What would support you to get ready in the morning and feel energized?
One of the behaviors you may notice is that you will stop shutting off your camera and "show up" to vitual meetings.
In this isolated environment, showing up is crucial and it will help you keep your edge. It's tough to accomplish that when others are staring at a black square on the screen with a little avatar of you.
Showing up means showing your face and connecting with people, face to face. That connection is the best that we've got right now.
Don't waste it. Don't give it up, and don't miss this opportunity to "see" the people you connect with every day.
CONNECT!
I'm going to give you a strategy that I use and teach my clients. And this is connecting regularly through a 15-minute cyber coffee.
One of the biggest recommendations that I give my clients is to make networking part of their job. In my book, Fearless Women at Work, I say that networking is not something we wait to do when we need a job, a new opportunity, or need facts about our field.
Networking needs to happen regularly.
It's important to network because, for one, you're going to learn more from people and be able to connect with them on a deeper level than if you're only transacting with them. The goal is to build relationships and move away from being transactional.
The other benefit is that when you need to access your network, for whatever reason, you will actually have one.
As a professional, most of us connect on LinkedIn, and it's the easiest group of people to connect with—people you are already working with or with whom you have worked in the past. Those people know you.
Send them a LinkedIn request. Then, after you connect with them, send them a message and say something like, "Hi, Ginny, I know it's been a while. What's going on with you? How's your family? Would you be open to a 15-minute cyber coffee to catch up?" and provide a couple of dates/times that work for you the following week. And most likely, the person will reply and say, "Yes."
Now, who are the people that you want to connect with? These are the people you have worked with in the past or present who you appreciate and respect and would like to continue a professional relationship.
Include mentors and those you've lost touch with who've sponsored you in previous roles. This could also be people who you're interested in learning from. These are all possibilities as to why you would want to connect with them.
Make sure that you come to the table with an offering. If you check out their LinkedIn feed, you will see some of their most recent activity. Do a little research before meeting with them. See what they've posted or what they've "liked" recently. You can use that as a point of reference when you speak with them.
For some of us, this is very simple. But for others, this could be very difficult and intimidating.
To muster up your courage, do a little research and begin the conversation by simply saying, "How are you doing?" How's the family? How is the job?"
This is only a 15-minute cyber coffee. And if you would like to continue to connect in the future, then say to the person, "Would you be open for me to reach out to you in a couple of months?" That's how you also develop organic mentors and sponsors.
This is one way that you can stand out during the pandemic. If you don't feel that you have the time to network this way, my challenge for you would be to identify one person a week with whom you would like to connect.
Make that one connection. Send them one LinkedIn message, and ask them if they would be open to connecting with you for a 15-minute cyber coffee, and you will be shocked at what you learned.
BE POSITIVE
Many of us find ourselves in tough situations, especially if this is the first time you are working from home.
Whether you're in the office or working remotely, bringing positivity to your interactions will help you stand out.
When working in a hybrid workplace, how do we do positivity to the workplace?
It's very difficult to be positive when you individually are not feeling optimistic.
One way I teach my clients to be more positive and embrace a growth mindset is to always look for opportunities to learn in whatever situation you are in.
You may have heard the phrase, "Life is happening for you, not to you." That simple phrase has a lot of implications. One of which is that how we frame what is happening in our situation determines how we feel about the circumstance.
In your case, you may be facing some challenges around projects. Perhaps it's difficult to collaborate now that you are not seeing your teammates face to face. This experience is an opportunity to get creative.
How can you continue to collaborate as much as possible with your teammates, given your current circumstances?
Maybe you are not very comfortable getting in front of a camera. This is an opportunity for you to show up, connect, and get more comfortable. Step out of your comfort zone and become better acquainted--the more you do it, the more comfortable it becomes.
Building positivity and developing a growth mindset will serve you in many areas of your life.
And to cultivate a growth mindset, look at other areas where you want to shift the way things ar today. You may say to yourself, " I'm going to nip that in the bud. I'm going to start spending less. I'm going to start saving. I'm going to be more cognizant of where I put my financial resources so that I can cut down that monthly bill. I'm going to stop buying things that I don't need."
These are different ways to embrace your growth mindset and bring self-awareness to what you're doing right now.
I also cultivate positivity in my life because I get myself in a positive state every morning. When I get back from the gym. I play upbleat music while showering. I then make a quick, delicious, nutritious breakfast. When I sit down to write, I light a candle, play spa music in the background. These things put me in a positive frame of mind.
What is that for you?
What would help you join your meetings with your teams, manager, vendors, partners, etc., in a more positive way?
Your challenge is to figure out how to be more positive in your interactions with the people in your life.
And guess what? With a growth mindset, you believe that you and other people have potential and that you and they can change.
GET HUNGRY!
I want to bring up something very near and dear to my heart. It really speaks to who I am as a coach, as a mom, as a woman. And that is: get hungry.
You stand out from the crowd when you get hungry about creating a compelling future for yourself.
What is that compelling future for you?
If you've been in the workforce for decades, after a while, having a purpose and performing meaningful work is significant. And the need to generate income, of course, is always there.
Perhaps once you started to meet the need to generate income, other human needs kicked in, i.e., the needs for growth and contribution.
Initially, we're primarily focused on certainty--the paycheck to pay bills and secure housing. We want a good job. While in that job, many of us satisfy our need for significance.
As humans, se also crave connection. And when we work, whether it's virtual or live, we connect with our colleagues.
But then, over time, we become very complacent. At first, we're growing, we're learning. And then we plateau, and we are in this mode for a while, until we realize that everything is predictable. If we're not making progress, we typically dont' feel fulfilled.
What will it take for you to make progress?
What is it about you as a subject matter expert that you need to learn?
Have you stopped learning?
Many of us are forced to learn because of the nature of our jobs. But if you have the type of job where you can coast, that is a trickier position to be in because you can easily fall into a rut. You may feel stuck, or you may have even been bumped from one role to another. And now you're sitting in a role that is not aligned with thwat you want.
Sometimes we use the excuse, "This is it for me. This is all I'm going to accomplish. This is as far as I'm going to go. I'm done. And I should be lucky because I have a job." And if you know me, you know that I'm all about gratitude. Of course, I am so grateful that I get to do what I do every day. And I'm also ambitious in that I want to reach my full potential. And I know that I have so much potential that I still haven't even gotten close to tapping.
I am inviting you today to ask yourself:
What am I hungry about?
What have I deferred?
What have I forgotten about?
Which of my dreams have I given up on?
The worst thing that can happen is that while alive, you feel dead inside--the fire in your belly is gone, and you are going through life on autopilot.
I don't want that to happen to you, just like I don't want that to happen to any of my clients. That's why embracing self-development and answering these empowering questions is so important.
FOCUS
During a time when many different opportunities may come our way, it's important to stay focused.
One way to stand out during a pandemic is by staying focused on what's most important to you, the business, and your team.
It's very easy for us to get distracted, Focus on your projects, building relationships at work, continuing to do that self-development to expand as a subject matter expert (SME) in your field and add the most value.
Team focus is something that so many struggle with. There are many reasons why we do. We struggle to focus in some cases because facing what we need to face seems harder than deflecting it and postponing it. We automatically tend to look for other activities that will take us away from what we don't want to tackle.
If that's the case for you, where you find yourself deflecting and not wanting to pay attention to that one thing that needs to get done, this is how I set it up for myself so that I can succeed. If I need to do something, I put it on my calendar. That helps me to create the focus and structure that will support me.
Once it's on my calendar, it's much more difficult for me to say, "No, I'm not going to do it." We can trick our minds so that we don't sabotage ourselves, the team, or the project. When you put it on your calendar, you allocate that time, and make it a sacred time.
The more actions you take, the more results you will see.
The results you get validate the belief that you're on the right track, which will help you take more action and see more results. If you don't see the results you want, you can always tweak and redo.
If you find that you're not getting where you want to get to in your career or find yourself stuck, look at yourself and consider these questions:
When was the last time I did anything for myself professionally?
When was the last time I learned something new?
How am I applying what I'm learning to be a better teammate, employee, and leader?
With love and appreciation,
Coach Ginny 💕
We'd appreciate it if you share this article with your network by clicking on the "..." at the top.
If you want to explore how we can support you, let's connect over a complimentary strategy call. I will give you my undivided attention and help you identify your "Why" and most significant challenges quickly. We'll even begin to strategize on the right plan of action that will support you moving forward.
Whenever you're ready, we want to serve you with what you need support the most! Here are some ways in which we can do this together: #1 - Want to become our partner in populating the world with great leaders? Here is how! If you know someone in your trusted network of friends and colleagues who can use the support of a coach like me, I would like to invite you to check out my 10% referral program. Get the details from our Affiliates & Referral Partners page. #2 - Check out our virtual, proven career and leadership training: Learn the #1 success secret to becoming the highly impactful, influential leader you are meant to be without sacrificing your well-being. Spots are limited. Get the details here: www.fearlessledershipmastermind.com. #3 - Develop your Personal Brand with our two-week virtual program: We share the exact steps to stand out in a new job market, confidently, despite today's economy. Get the details here: www.personalbrandingmasterclass.com. #4 - Coach with us, virtually, privately, one-on-one: Join one of our private coaching programs, designed to address your specific challenges and goals, accommodating your busy schedule. Our clients earn promotions, higher pay, transition into new roles and industries they love, and enjoy a higher level of financial, emotional, and even spiritual well-being. They "do the work" and see the results! 100% virtual, join us for a complimentary session: www.executivebound.com/get-started. #5 - Introduce us to your company to deliver virtual and live motivational talks and leadership training: We partner with organizations and individuals over a wide range of industries, providing the support and structure to develop talent and grow your leadership teams. Please email us at info@executivebound.com, and let's connect.. #6 - Read our book: Fearless Women at Work: Five Powerful Strategies to Thrive in Your Career and Life! This book’s sole purpose is to ignite your personal power to pursue the life of your dreams by applying five practical strategies in a unique process named C.A.R.E.S. Get your copy and BONUS Book Club Guide companion today at www.executivebound.com/book. #7 - Read our blog & share it! Keep your mind fresh with ideas. Retool with strategies to navigate challenges at work and in life. And take action that will propel you forward. Knowledge and execution are power. Visit our blog, and if you enjoy the articles, please share them with your friends and colleagues.
About Dr. Ginny A. Baro
Dr. Ginny A. Baro is a sought-after international motivational speaker & leadership coach, a career strategist, and #1 bestselling author of Fearless Women at Work.
Ginny specializes in partnering with organization to develop leadership teams at all levels of management. And she supports individuals navigating a corporate hierarchy or moving into an entirely new phase of their career. She has successfully facilitated live and virtual leadership training and coaching programs for individuals and Fortune 500 companies with over 140,000 employees and delivered keynotes impacting international audiences larger than 7,000. To learn more, visit ExecutiveBound.
Join our community and receive valuable strategies delivered to your inbox (we don't spam). Read other articles in our blog, and follow us on Facebook, Twitter, and Instagram.
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