Financial Education for Employees — Why It's So Important
Financial education is arguably one of the most important kinds of learning, but are we actually teaching it? Not adequately. Every year, the National Financial Educators Council (NFEC) conducts a 30-question assessment that covers 10 key areas of money. Since its inception back in 2014, and as of this January, about 93,000 Americans have participated in it, generating an average score of 67.34% — not a passing grade.
However, there are a lot of different ways to measure financial literacy. Various studies, tests, and surveys arrive at slightly different results, but the overarching outcomes are often similar, usually arriving at the conclusion that, no, we’re not as financially literate as we should be.
Financial literacy is cultivated through good financial education, but many people just don’t have a reliable source of financial wisdom to lean on.
The Importance of Providing Financial Education for Employees
So, our financial literacy isn’t where it should be. Should employers step in and provide financial education for their employees? It might sound like an unusual pairing at first, but it makes a lot of sense. Consider the fact that, for employees, the majority of their financial life is often tied to the employer — income, insurance, retirement investing, and subsequently, basics like budgeting and saving.
It’s been found time and time again that financially stressed employees have an overall worse relationship with work. Employees who are worried about money are:
- 18% less likely to feel energized at work.
- Twice as likely to be looking for another job.
- 14% less likely to feel like they belong at their company.
- 13% less likely to feel that their values align with their employer.
- 15% less likely to feel they have a promising future at the company.
- 13% less likely to recommend their employer as a great place to work.
- And 10% less likely to report being proud to work for their company.
How Financial Education for Employees Can Combat This
Financial education is a source of empowerment. Much of the anxiety and stress around money comes from feeling a lack of control over our finances, often because things can get complicated and overwhelming very quickly. The more you learn about and truly understand all aspects of your financial situation, the more empowered you are to take control of it and change it for the better.
And employees want financial education. The vast majority (91%) of employees say that they and their co-workers would stand to benefit from employer-led financial education, support, and advice in general. PWC also reports that 74% of employees “want help” with their finances, especially amidst economic uncertainty.
The Material Benefits of Providing Financial Education for Employees
Providing financial education for employees is just one aspect of a holistic approach to financial wellness, but arguably one of the most important components. The benefits of this are tangible, too, with improvements across the board on both the employee and employer side.
Providing financial wellness benefits to employees (like education) has been shown to:
- Improved productivity and focus: Financial stress significantly dings employees' performance and morale at work, with many spending up to 9.2 hours per week dealing with personal financial issues on the clock. Financial wellness programs, such as those offering education on budgeting and debt management, reduce stress, enabling employees to focus on their tasks and improve efficiency.
- Reduced absenteeism: Financial stress is also linked to deteriorating mental and physical health, contributing to higher absenteeism rates. By addressing financial concerns, wellness programs help reduce stress-related health issues, leading to fewer sick days. Employers offering such programs see improvements in absenteeism, as financially stable employees are generally healthier. For instance, 27% of workers reported financial stress negatively affecting their physical health.
- Improved engagement and morale: Employees who feel financially secure tend to be more engaged and satisfied in their jobs. Financial education gives them the tools to manage their finances better, increasing job satisfaction and overall morale. Another study found that 84% of employees report better job satisfaction when supported by financial wellness programs.
- Higher retention and lower turnover: Financial wellness benefits are crucial for retaining talent. Employees are more likely to stay with an employer who offers such programs, reducing costly turnover. In fact, 68% of employees said they would remain with their company longer if provided with financial wellness benefits. This enhances employee loyalty, improves the employer’s brand, and helps attract new talent.
- Tangible personal financial benefits: Employees participating in financial wellness programs often report better financial outcomes, such as increased savings and reduced debt. Per our own data, 57% of those who work with a financial advisor say their net worth has increased by 50% or more, and Northwestern Mutual found that Americans with financial advisors expect to retire two years earlier than those without.
How Origin Provides
Origin provides employees with the financial education they need and then some. Not only do employees receive access to hundreds of lessons and articles about all things money, but they’ll also be kept in the loop on important updates and money news that can impact their finances with our twice-weekly newsletter, The Gist.
On top of that, they’ll be getting an all-in-one, holistic money management platform that allows them to:
- File their taxes at no additional cost.
- Save their extra cash at a competitive yield.
- Budget, track spending, and see upcoming transactions.
- Partner with a financial planner or harness AI for tailored insights to drive your financial goals.
- Protect their family with a basic will at no additional cost, or even create a more complex estate plan or trust.
- Invest, whether it’s on their own or with a managed account with no asset under management (AUM) fees.
- Get personalized financial info and insights anytime, anywhere, from our AI-powered financial assistant, Sidekick.
Answers to your questions
Yes. Origin offers partner access so you can manage your finances together at no additional cost. You’ll be able to filter transactions by member—making it easy to see which spending is yours and which belongs to your partner.
Yes. You can edit existing transactions and add new ones directly in Origin, so your records stay accurate and personalized.
Origin connects securely through trusted partners including Plaid, MX, and Mastercard.
Yes. Origin supports CSV uploads. You can upload a .csv file of your transactions, and we’ll import them into your account.
Yes. Your data is protected with bank-level security and advanced encryption. When you connect accounts through Origin, your login credentials are never shared with us. Instead, our partners generate secure tokens that let Origin access only the data you authorize—keeping your personal information private while enabling personalized insights.
Yes. You have full control to organize your spending in Origin. Transactions are automatically categorized by Origin, but you can always edit categories, add your own tags, and filter transactions however you like—so your spending reflects the way you actually manage money.
