May 1, 2013 THE VILLADOM TIMES I • Page 13 The economy may be showing signs of improvement, but research shows employees are still not confident about their own financial situations. According to the Federal Reserve, American workers spend an average of 28 hours a month worried about calculating or stressed over finances. It is a situation that can cost employers $5,000 a year per employee in lost productivity. Help for struggling employees may be right outside their cubicles through workplace financial education. Financial literacy is defined as the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. Financial literacy can make employees more productive and less vulnerable to major economic uncertainty. However, only about half of employers say they provide even the most basic workplace financial education. By offering employees the opportunity to improve their financial literacy through programs at work, companies can help employees achieve financial well-being. There are many different topics employers can cover to provide education for employees. Using the workplace as a financial education classroom is a tremendous opportunity to increase productivity, engagement, and loyalty. Financial literacy topics could include: • Budgeting and spending plans Financial literacy education has many benefits • Retirement planning • Changing family structure: marriage, divorce, new baby • Setting financial goals • Planning for emergencies • Paying for college • Managing credit • Getting out of debt • Company 401(k) or other defined benefit options • Insurance • Estate planning • Elder care It is not necessary to give everyone a day off and book an expensive conference facility to offer a financial literacy program. At the most basic level, financial literacy courses can be offered by an in-house human resources staff member or by an outside expert during a brown bag lunch or after-work session. Members of the organization’s finance department might also be able to provide professional advice and guidance. Employers may also want to consider offering one-onone counseling at the office during work hours. According to research from The Principal Financial Group, employees with access to one-on-one counseling become more engaged in their financial affairs and save more, among other positive outcomes. One note of caution: Any time people employed at a company help educate fellow employees, it is important to provide a clear disclaimer saying the information is being provided by individuals for educational and information purposes. The “trainers” should make it clear that people should check with qualified professionals before making any important financial decisions. State clearly that the company will not be liable for any action an employee takes based on this kind of peer-to-peer communication. Employees’ personal financial difficulties can be allencompassing. Employers can be a part of providing solutions through education. If you have questions about financial literacy at your company or place or employment, contact your CPA. If you don’t have a CPA, you can easily locate one online using the NJSCPA’s free, online Find-A-CPA service: findacpa.org. To find more information on various personal financial matters, visit the NJSCPA’s public service website at MoneyMattersNJ.com. While visiting, consider subscribing to Your Money Matters, the NJSCPA’s free, monthly e-mail newsletter, to receive valuable personal financial planning advice throughout the year.