We had a great response to our reader poll on financial literacy – and some strong reader interest on knowing more about how/if you are integrating this into your practice. Here’s what we discovered.
A previous NAPA Net reader poll dealt with the concept of financial literacy, the need for it, when/if the concepts should be introduced in schools, and how it was being introduced to the children of NAPA Net readers. This week, in a follow-up poll we found that more than half of the respondents provide financial literacy training in the workplace – either directly (45%) or via a partner (15%). Another 10% have done so when asked, but don’t do so “generally.”
Fewer do so outside of the workplace; just one in five, in fact. On the other hand, nearly that many (18%) have done so in the past, and/or have done so upon request. “Have made attempts, both formally and informally,” noted one reader. “Formally – attempting through Jump$tart, an initiative through my Junior League chapter and the pro bono program of my local FPA chapter. Informally, have used NEFE materials to lead a small group of high schoolers through the training.”
Movement Makers
For about 4 in 10 of this week’s respondents, these programs were undertaken at their instigation, though about 47% said it was a combination of their initiative and being asked to do so by plan sponsors.
As for the topics covered – well, there was a nice mix (more than one answer could be selected):
93% - budgeting
86% - basic finance
81% - investing
73% - financial planning
27% - checkbook balancing
With college planning, tax planning, and retirement planning also cited. That training was provided via a variety of different media, including:
73% - provider tools (such as calculators)
67% - group counseling
60% - one-on-one education
27% - special software
There does appear to be a growing interest in these programs. Roughly half of this week’s respondents noted an increase in employer interest over the past two years, with another 19% citing interest primarily among larger employers, and another 6% citing it among smaller employers. For the rest, perceived interest levels were pretty flat. One reader noted, “For over 30 years, the interest was, and is always there, but no one wants to ask and show their ignorance... that is why WE make it a part of our regular ongoing education program.”
Reader Comments
We receive a number of reader comments on the subject as well. Here’s a sampling:
- “In my opinion financial literacy is such an issue currently because it is unfortunately not taught at elementary, middle school and high school level. We are not laying the proper foundation to equip employees in the work force today. Financial literacy is a great step but it’s like hanging a shingle before you lay the foundation.”
- “I think we need to promote financial literacy more especially with the younger generation,” noted one reader.
- “Our work through Financial Wellness Programs had developed into Financial Literacy programs. The assessments employees take clearly show the need for this.”
- “I have been working with retirement plans for 30 years now and have, yet to encounter many financial literacy programs in the workforce (face-to-face). Early in my career, we did more group meetings explaining the retirement plan workings and benefits. We also provided plan updates through the distribution of paper communications.”
- “Now the internet has been the means of providing financial literacy for our plan participants and for our clients' participants. Most of the large plan administrators provide this information through the plan sponsor website. It does a much better and more complete way of providing financial literacy to participants. The main downside, of course, is the impersonal nature of it.”
- “When you make programs too complicated, they are not effective. When they are too simple, you lose the more advanced participant; a multi-module approach has proven to be successful for many groups.”
- “Providing what we call financial wellness meetings to participants is just part of our service model now.”
Thanks to everyone who participated in this week’s NAPA Net reader poll!
