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HR Party of One is brought to you by BerniePortal.
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In:
2023
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its annual 28-question financial literacy survey. The survey revealed that, on average, U.S. adults
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answered only 48% of the questions correctly. The survey also found a few more alarming statistics:
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Financial literacy among women consistently falls behind that of men.
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Financial literacy is lowest among Gen Z; and Those with a very low level of financial literacy
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are more than four times as likely to have difficulty making ends meet in a typical month,
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nearly three times as likely to be debt-constrained, and more than
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four times as likely to lack emergency savings sufficient to cover one month of living expenses.
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So, why should HR care about all this? Because financial stress doesn’t stay
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at home—it comes to work, too. Employees facing money troubles are more distracted,
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more likely to take sick days, and more likely to head for the
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exit if they think a higher paycheck elsewhere will fix their problems.
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The good news is that HR leaders are in a prime position to change that. By doing so,
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you’re not just supporting the people in your organization—you’re building a culture
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where financial empowerment becomes the norm, which benefits everyone.
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In this episode, we’ll cover 5 strategies to encourage financial literacy at
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your organization. Let’s get started!
Make Financial Literacy Part of Your Onboarding Process
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Strategy 1: Make Financial Literacy Part of Your Onboarding Process.
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Let’s kick things off with onboarding. When employees first join your organization,
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it’s a perfect time to introduce them to financial literacy concepts. They’re
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already in learning mode and absorbing all kinds of new information about your company
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and its culture—why not include a little financial education while you’re at it?
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For example, when you’re explaining the benefits package, you can go beyond just saying,
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‘Here’s your 401(k).’ Take five minutes to talk about how compound interest works and why
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starting contributions early—even small ones—can make a huge difference over time.
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You could also provide employees with a financial wellness starter pack:
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a simple budgeting template, information about HSAs or FSAs, and links to beginner-friendly
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financial tools. You can also send them a resource sheet that includes websites like:
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Even just this small effort at the start of their employment can set a tone that says,
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'We care about your financial well-being.' And when employees feel supported,
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they’re more likely to be engaged and productive.
Meet Employees Where They Are
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Strategy 2: Meet Employees Where They Are. Everyone is at a different point in their
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financial journey, so offering resources tailored to their needs
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is important. Financial challenges often don’t respect generational lines—anyone
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can find themselves dealing with issues typically associated with another generation,
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but let’s break down common financial challenges based on generation:
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Gen Z Gen Z is just starting their financial journey,
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and many are weighed down by student loan debt. A report by Educationdata.org found that on average,
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Gen Z graduates owe $14,380 in student loans. They may also lack basic financial literacy. So,
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to help them out, offer easy-to-understand guides on budgeting and managing debt. A
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“Financial 101” session or resources on loan repayment options could be really helpful.
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Millennials Millennials are
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also juggling student loans, often more than Gen Z, with the average Millennial
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borrower having around $32,800 in student debt. According to educationdata.org,
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this could be because millennials are taking longer to finish their degrees, thereby increasing
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their debt the longer they are in school. On top of managing student loans, many Millennials are
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also trying to save for a home and plan for retirement. In fact, a survey by AARP found
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that 25% of Millennials say student loan debt has kept them from moving out of their current home.
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To support this generation, consider offering workshops or sessions focused
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on managing student debt, saving for a home, and building retirement plans.
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Generation X Gen X is often in the thick of retirement planning
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and dealing with the costs of raising kids and caring for aging parents. Many are worried about
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not having enough saved for retirement. They need financial education on retirement savings,
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college savings plans, and how to balance caregiving while planning for the future.
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Baby Boomers Baby Boomers are nearing or
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already in retirement, and their main concern is healthcare costs and ensuring their savings last.
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According to AARP, over half of Baby Boomers have less than $100,000 saved for retirement.
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For Baby Boomers, it can be very helpful to offer sessions on Social Security benefits.
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By recognizing the unique financial challenges each generation faces, you can tailor
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your financial literacy programs to meet their specific needs and provide meaningful support.
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But here's the important part: age is often irrelevant when it comes to financial struggles.
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Whether it’s Gen Z struggling with student loans, Millennials juggling debt while saving for a home,
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Gen X worrying about retirement while caring for aging parents, or even Baby Boomers who
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fear outliving their savings, financial issues transcend generational lines.
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That’s why inviting the whole organization to participate in these programs is so important.
Partner with Financial Advisors
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Strategy 3: Partner with Financial Advisors.
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Partnering with a financial advisor or financial coaching service can provide
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employees with access to experts who can help them tackle their unique challenges.
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For example, you might bring in a financial advisor for quarterly office hours where
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employees can schedule one-on-one consultations. They could get advice
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on everything from how to refinance student loans to setting up an investment portfolio.
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And you don’t have to stop at individual consultations. Advisors can also lead group
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sessions on topics like understanding taxes or preparing for big expenses like buying a home.
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One tip? Make it clear that these sessions are optional and confidential. You don’t want anyone
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to feel pressured or worried that their financial struggles will reflect poorly on them at work.
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The goal is to create a judgment-free zone where employees feel comfortable seeking help.
Host Monthly Webinars or Lunch and Learn Sessions
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Strategy 4: Host Monthly Webinars or Lunch and Learn Sessions
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Hosting monthly webinars or lunch-and-learn sessions is an excellent way to make financial
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literacy more accessible in your workplace. These casual events create a safe space
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for employees to explore personal finance topics they might shy away from elsewhere.
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Consider inviting experts to cover essentials like budgeting, managing debt, or planning
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for retirement. Many adults struggle with key financial concepts—things like interest rates,
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inflation, and credit—largely because personal finance isn’t a focus in most school curriculums.
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You can also address practical, high-impact topics such as building emergency savings,
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navigating student loan repayments, or maximizing benefits like HSAs or
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401(k)s. Rotating these themes each month based on employee questions
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or current trends keeps the sessions fresh and relevant to your workforce.
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At BerniePortal, we recently hosted a lunch-and-learn—what we like to call
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“Forced Bernie Fun”. Experts from Merrill Lynch shared insights on the benefits of
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401(k)s. The session was a hit, especially with employees newer to the workforce,
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who left feeling empowered and excited to take charge of their savings. On top of that, we saw a
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boost in benefits engagement afterward, proving that these sessions really make a difference!
Integrate Financial Literacy into Everyday Employee Benefits Communication
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Strategy 5: Integrate Financial Literacy into Everyday Employee Benefits Communication
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Incorporating financial literacy into your benefits education is one of the most effective
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ways to help employees make smarter financial decisions. Benefits aren’t just perks—they’re a
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significant part of employees’ compensation and have a direct impact on their financial health.
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Don’t wait for enrollment season to focus on financial literacy—make
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it a year-round part of your benefits communication strategy. Share quick tips,
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like reminding employees to update their beneficiaries or showing them
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how to maximize employer matches and avoid leaving money on the table.
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By using the benefits administration feature of an all-in-one HRIS like BerniePortal,
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you can automate time-consuming tasks like sending benefits enrollment notices. This not only
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streamlines your workflow but also frees you up to focus on encouraging financial literacy within
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your organization. That should be your priority. Breaking down complicated benefits jargon like
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“vesting,” “out-of-pocket maximums,” and “premium contributions” into simple,
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relatable terms can also make a world of difference for your employees.
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To make it even easier, you can point your workforce to resources like HR Party of One.
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We have episodes that cover these topics in-depth, providing clear explanations
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and practical examples that can supplement your benefits education efforts. And if you're using
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BerniePortal’s benefits administration feature, we've seamlessly integrated these videos into the
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employee benefits election process, so your team can access them directly when making
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their benefits choices. Remember—your role is as strategic as you make it!
