Article How to improve financial literacy among your employees

Essential skills like budgeting and managing debt could help employees feel more in control of their money – possibly empowering them to make better financial decisions

Research from the London Foundation for Banking & Finance found that financial literacy in the UK is low compared to other countries – and that 39% of UK adults don’t feel confident managing money.¹

As an employer, there’s actions you can take to help employees improve their financial knowledge and skills. Find out why financial literacy matters in the workplace and four actionable tips to consider.

Why is financial literacy important in the workplace?

Money concerns can have a direct impact on financial wellbeing and can be a distraction at work. Concerns about money may also affect employees’ mental and physical health, forcing them to take time off work.

According to research from mental health charity, Mental Health UK, 49% of people agreed that money worries had caused stress and may have contributed towards burnout.²

Understanding the financial needs of your employees could help attract and retain the best talent, improve levels of financial wellbeing and reduce the costs of absenteeism in your business.

How to improve financial literacy in the workplace

Here are some strategies you could explore to empower your employees to be more confident when managing their money.

1. Develop a financial literacy programme

Educate your employees on key financial topics like workplace pensions, earnings, and savings. For example, help them better understand the components of their payslip, discuss methods for budgeting, or how different tax and saving allowances work.

It’s important to use simple, clear language and aim for bite-sized, regular communications that employees can easily digest. We all learn in different ways, so consider the style of support you provide. Would live webinars and face-to-face workshops be of most benefit – or would written content and videos that can be reviewed in their own time be preferred?

If possible, make the most of any in-house experts across your business, as well as external guides and resources for your programme. For example, your pension provider will likely have a range of materials around educating and engaging employees with their savings.

Be careful not to offer specific advice about important financial decisions such as investing unless you’re qualified to do so. The aim is to educate employees so they’re better equipped to make their own decisions. If they need it, you can point them to other guidance and advice, which we’ll cover further in this article.

2. Tailor support for different groups

Money worries don’t affect everyone equally, with UK charity Young Women’s Trust noticing a gender imbalance when it came to financial worries in its 2024 research.

It discovered that 42% of young women found that their financial situation got worse over the previous 12 months, compared to 27% of young men.³

Age plays a part, too. Almost half (41%) of people aged 50 and over surveyed by charity Independent Age were concerned about living in economic hardship after they stopped working.⁴

Older employees could also perhaps feel less comfortable with technology such as online banking or apps. This could make it more challenging for them to manage their money.

As such, personalising your support for different demographics, life stages and other nuances may prove more effective and drive engagement with the topics you cover.

3. Make guidance and advice accessible  

Your employees might need further support beyond an in-house literacy programme – but the cost of expert financial guidance or advice may be a barrier for them. If you’re able to, providing these services for free or at a subsidised rate could encourage employees to go beyond a basic understanding and actively engage with their finances.

For workplace pensions, your employees may already have access to free or discounted advice through your workplace scheme provider.

If subsidising advice isn’t an option for you, clearly signposting free guidance and resources can be just as important for employees to further their financial learning.

Many employers may admit that their employees aren’t fully aware of the benefits they offer or don’t fully understand them. So, make sure any relevant internal or external links and materials are widely known and easily found. This will allow your employees to improve their financial literacy at their own pace, and in their own time. 

There are lots of materials to direct employees to, such as:

• Our Money tips hub which features articles on money matters like managing debt, to understanding pensions and everyday money management.
• Our new Money:Mindshift hub – it’s here to offer you a fresh perspective on finances. We want to take away the uncomfortable or ‘taboo’ aspects of money, and put financial wellbeing at the forefront for you, and your employees. There's a Money:Mindshift hub for employers, too.
• Our Financial Wellbeing index which shares our research, hints and tips for employees to improve their financial wellbeing.
• There’s also MoneyHelper, which is a free, government-backed and impartial service that offers guidance on all kinds of financial matters.

4. Promote open dialogue 

By normalising conversations about money in the workplace, employees might be more open to speaking up and asking questions. In doing so, you’ll learn more about the issues they’re facing and be better placed to give them support.

Get involved in initiatives like Talk Money Week, which encourages people to open up about their finances.

Embrace the benefits of financial knowledge in the workplace

Improving financial literacy in the workplace can have advantages for everyone. By doing so, your employees can develop more confidence and expertise when it comes to their finances.

Through this, you can nurture a happier, healthier and more productive working environment for all.