Money Management

Financial Education in the Workplace Can Improve the Bottom Line

April 2008

Businesses spend a lot of time and energy developing ways to increase productivity.  Many of these initiatives can be undermined by stressed employees, especially those burdened by issues arising from the souring economy. One way to reduce financial-centric stress in the workplace, and thus improve productivity, is by offering personal financial education programs in the workplace, says Pennsylvania Institute of Certified Public Accountants (PICPA). This nonwork-specific approach may seem unconventional, but a growing number of companies that have invested in financial education are reporting positive results.

There is an estimated 3-to-1 return on investment for employer-provided financial education. According to the Personal Finance Employee Education Foundation, businesses that implement quality financial education programs will see many one-year changes in work outcomes, include the following:

• 12 percent will improve their job performance rating.
• 10 percent will spend less work time on personal finance issues.
• 16 percent will have reduced absenteeism.
• 9 percent will lower health care costs.
• 5 percent will have less turnover compared to average.

One organization that is at the forefront of providing financial education in the workplace is PICPA. The organization’s Money & Life program was created by two of its members, Virgil Kahl, CPA, and Laurie Peer, CPA. The Money & Life program teaches the public about money management by covering topics such as budgeting, insurance options, debt, and juggling financial priorities. The program topics can be tailored to fit the needs of each company’s employees.

Programs have been held during the work day, after hours, or as a brown bag “lunch and learn.” Money & Life programs are presented by CPA members of the organization and are free of charge. The presenters are not selling products or services, but simply promoting the need to take control of personal finances as a public service and community outreach endeavor. One resource often used by CPA presenters is the American Institute of CPAs’ financial literacy Web site, www.360financialliteracy.org.

To set up a program, contact PICPA at communications@picpa.org.

Founded in 1897, the Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPA practitioners in public accounting, industry, government and education. PICPA is the second oldest state CPA organization in the United States. Use PICPA's CPA Locator to find a CPA in your area.