In the corporate world, outstanding personnel who are eyed for managerial positions usually go through training in financial literacy ahead of promotion. For their colleagues who show little potential, financial literacy is considered an unneeded skill set.
But times are changing. A growing number of companies have realized that financial literacy is for everyone and will ultimately benefit the entire organization.
According to Forbes magazine, financial literacy refers to one’s grasp and effective use of various financial skills, like budgeting, saving, debt management and retirement planning. It helps people make more informed decisions, which translates to financial stability and better quality of life, both for themselves and for the company.
When working parents learn how to manage the company’s finances through training, they apply those new skills in making their family’s budget. In an ideal scenario, there will be a seamless application of financial skills in the workplace and at home.
When employees make wrong decisions in budgeting and resource management, they will avoid making the same mistakes when handling their personal finances. Or vice versa. In managing their credit card debt, employees gain a valuable lesson in prioritizing expenses and in debt-to-income ratios.
When every employee is trained in financial literacy, a company may be left with a huge pool of number crushers and future managers. And that isn’t necessarily a bad thing.
