How many of you knew how to manage your accounts, apply for loans or invest in stocks and shares, when you started your first job? Probably not that many!
Finance is not a subject taught at high school, or even at A-Level and so many young adults starting off their careers, may find that they are unsure how to make the most of their salary.
In a test by Freetrade called “The Great British Financial Literacy Test”, 2000 people from different age groups, sexes and backgrounds were tested. In a shocking result, young people between the ages of 18-24 had a pass rate under 50%. It also showed that the least known subject was pensions, something that is a very important financial subject.
Perhaps more worryingly, 45% of young people said that dealing with their finances was having a negative effect on their mental health. Not surprisingly, a majority of the knowledge sourced came from the internet (Google with 39%).
Should finances be taught at school?
As part of the literacy test, a huge 76% of people agreed that financial literacy should be taught at school/college. In a world, that some argue is ruled by money, leaving school and heading into employment or even further education with some knowledge of finances can only be advantageous in the long term. Whether that is related to student loans, applying for your first credit card, or managing a salary; these are all crucial to healthy financial wellbeing.
This also leaves the question of whether businesses should also train their employees in finance.
The value of training your employees in finances
It might not seem obvious why you should provide training for your employees in finances. After all, it would be prudent to assume that anyone who has entered the world of work would have some experience in this. However, that is not always the case and having a programme for your employees will have many benefits including:
- Leaving your employees with long-term life skills that can be taught to others
- Thoughtful decisions in finances can lead to avoidance of debts and unnecessary loans
- A financial strategy, including plans for retirement/pensions
All of these benefits will result in positive financial wellbeing for your employees which can lead to reduction in anxiety, stress and depression. This is particularly significant due to the current climate following the pandemic, which has left thousands unsure how they will manage their finances.
Productivity will improve when your employees are able to better understand your company and their place within it. Having your employees invest in stocks, shares and pensions will also increase your company’s equity.
SFB Consulting facilitate your training needs
SFB Consulting can support you when it comes to online training, including presentation skills that might be required to help you roll out your own training. If you would like to find out more, call us on 01279 874676 to discuss further.