Why financial literacy shouldn’t just be a “nice to have”

Money is one of the most pressing concerns on Filipinos’ minds these days. With major industries shut down and jobs suspended due to the pandemic, many of us are worried about how to make ends meet. 

No one could have predicted a crisis of this magnitude. Nonetheless, we can see how financially educated individuals have been able to handle today’s challenges more smoothly, while those lacking in financial knowledge have been struggling in comparison. 

While not a cure-all solution, a good understanding of money management can definitely boost a person’s capacity to survive emergencies like this. The problem is that proper financial education—despite good efforts from the public and private sector—remains inaccessible to most.

By the time we’re earning our own money, many of us have little idea or access to unbiased guidance on financial planning. Those who were never taught how to save or budget properly are more likely to spend on things they don’t need, set aside less than their peers, and fall prey to usurious lenders.

Though there are many tips and resources available on the internet, people often aren’t aware that these are things they should be searching for. The most effective way to promote financial literacy is still through interpersonal discussions, and the workplace is a great place to foster this type of education.

Much of the workforce see their paycheck as one of their biggest assets and would want to maximize the value of their earnings. However, the disparity between what we earn versus how we live causes many Filipinos to spend beyond their means. The good news is that employers are becoming more aware of this, and many look to provide training programs and financial benefits to help their employees deal with finances more positively. 

Promoting financial wellness at work is a win-win for both employers and employees. Unlike other training that can only be used in the office, financial education is a practical and impactful tool that extends beyond the workplace.  

Increased financial literacy can significantly reduce stress, encourage motivation at work, empower employees to make better choices for their future, and prepare them for emergencies like this COVID crisis. Better still, individuals can benefit from these lessons even after they’ve moved on from their jobs.

Knowledge is power, especially during these turbulent times. Shouldn’t our workforce—as the persevering carriers of our economy—have access to education and tools that can give them the best chance of success?

Before the rise of the pandemic, it was easy to dismiss financial education efforts as just a “nice to have” in the workplace. We’ve since learned that the impact of these programs on people’s daily lives is too great to be ignored.

Advance promotes wellness in the workplace by providing employees with access to on-demand financial services and financial literacy resources.