It’s no wonder the average American feels overwhelmed with the topic of personal finance today. With accounting scandals such as Enron, major changes in tax law and healthcare, two major recessions, two wars, and notorious criminals such as Bernie Madoff, our recent history has given no shortfall of reasons to be concerned about money. To make matters worse, the world of personal finance isn’t becoming simpler each year; it’s become more complex. Areas of personal finance for the American family may include retirement planning, education planning, insurance, elder care, tax planning, investments, estate planning and more. With so much continued change within each of these topics, even financial professionals find it difficult to keep current. All of these complexities and uncertainties translate into one common outcome – stress. A family does not need be facing bankruptcy to experience financial stress. Even successful professionals such as attorneys and doctors feel financial stress. The average American and the doctor may have vastly different financial needs, but the common link between them that causes this stress and concern is life. We all have busy schedules, families to take care of, and careers to focus on. Making time for complex financial goals doesn’t make it to the top of the to-do list very often. Even when personal finance does become a priority, it is just too complex to address without professional resources. This financial stress can take a big toll on personal performance. In fact, many mental health experts say financial stress can lead to health issues such as high blood pressure, headaches, and sleep issues. If financial stress can cause such changes in behavior, just imagine how it may affect performance in the workplace. With so much to deal with in the world of personal finance, mixed with a troubled economy, organizations are experiencing this decreased performance in their workforces. However, there is a way to help curb this activity and target greater organizational performance. Most large employers have 401(k) plans which help their employee save for retirement. By law, each 401(k) plan is also supposed to have ongoing education to help employee understand the 401(k) plan and how to use it to work toward retirement goals. However, many organizations either do not have this ongoing education in place, or it isn’t very comprehensive. For those organizations that do have ongoing education about their 401(k) plans, what about all of the other non-retirement topics that American families are facing? What about tax planning, college planning, insurance planning, and estate planning? This is the information that Americans are yearning to learn more about. They need comprehensive education for the world of personal finance. There are resources available to help people learn more about complex topics such as wills and trusts. These resources may include books, community college classes, or magazines. However, most of the books I have read on wills and trusts are much too complex for most of the public to comprehend, community college classes require a flexible schedule, and magazines don’t offer a great deal of information. The most effective way to deliver educational financial information to the American public is through the workplace. Organizations have a vested interest in providing this education anyway. For groups that have a 401(k) plan, ongoing retirement education is required by law. However, for all organizations, comprehensive financial education helps to drive greater performance. Make Your Money Work will walk you through the common concerns American families are facing, how successful organizations are implementing financial education programs, and what to expect when starting your own financial education program. You will also learn more about research done by both the Federal Reserve Bank and the Virginia Tech regarding the effects of financial education in the workplace. Whether this is a new concept for you or an idea you have entertained before, you are sure to enjoy the Six Easy Steps to help drive greater performance at your organization.
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