Talk during the 9th HR Learning EB

1. Mainstreaming
Comprehensive, Integrated,
p , g ,
Financial Literacy Programs
as an Emplo ee Benefit
Employee
By Estelle Ople Osorio
Managing Director
Biz Whiz Business Training and Consultancy
@ p
hello@bizwhiz.com.ph
http://www.bizwhiz.com.ph

3. • When we say GO!, go around the room,
introduce yourself, and ask if any of
them fit the descriptions on the card.
Ask them to write
their name under
the description that
they agree with.

4. • You will each receive a bingo card with
descriptive statements.

5. • Each person can only sign your bingo
card ONCE. Bawal umulit!

6. • Sh t BINGO once you have at least
Shout h tl t
one person’s name under each
description.
d i ti

7. B I N G O
I love shopping, I am not able to We have a I have an
I do not have an and I tend to buy save a portion of financial emergency fund
emergency fund. on impulse. my salary education that will last at
regularly. program. least 6 months.
I have some Money causes I do not have a I am debt-free! I have life
credit card debt. me stress. budget.
g insurance.
I do not have a I do not know BONUS I consistently I am invested in
plan for anything about Your name save a portion of stocks.
retirement.
retirement stocks.
stocks my salary.
salary
I have no I like going to the I worry about I have a financial I am invested in
financial plan casino to unwind. providing for my plan to reach my mutual funds or
whatsoever.
h t child’s education.
hild’ d ti goals and d
l d dreams UITFs.
UITF
I help others I owe money to I don’t know what I am saving up for I am saving and
without helping some friends / a mutual fund is. my children’s planning for my
myself. relatives. education. retirement.

8. C O N G R A T U L A T I O N S!

9. What did you notice about the
bingo card?

10. Financial illiteracy has been
called “the most glossed over
and ignored worker issue
today.
today ”
-- Metlife 8th Annual Study of
Metlife,
Employee Benefit Trends, 2010

11. Reasons to Invest in Financial
Literacy Programs as an
employee benefit
1.
1 It is the right thing to do
do.
2. It is less expensive to educate
workers on how to manage their
money and maximize their employee
benefits than it is to give them higher
salaries.
l i
3. Financial difficulties negatively
impact employee productivity.
productivity

12. Reason #1
R #1:
It is the right thing to do.

13. • Most Filipinos do not take Retirement Planning seriously.
• Most do not know or understand what their company’s
policy is on retirement benefits.

14. The question isn’t at what age
isn t
I want to retire, it’s at what
income.
~George Foreman

15. “The
“Th worksite i th perfect place to provide
k it is the f t l t id
basic, unbiased financial education and training
for
f employees. When employees learn about
l Wh l l b t
basic saving, debt management and investing
concepts, they can immediately apply these
t th i di t l l th
concepts to their health care, retirement savings,
and personal savings plans.”
d l i l ”
–
The Wellness Councils of America
“Financial Wellness Goes Mainstream”, 2007

16. Reason #2:
It is less expensive to educate
p
workers on how to manage
their money and maximize
employee benefits than it is to
p y
give them higher salaries.

17. “If employees do not have the financial
skills to maximize the benefits being
provided to them, they will: push for
more benefits be less financially
benefits,
secure, and be more likely to be
dissatisfied with their compensation ”
compensation.
--- (Martha Priddy Patterson 1997)
Patterson,

18. It s
It’s not about what you earn
earn.
It’s about how much you can
keep.

19. Earned $40 M in 2009
2009.
Almost filed bankruptcy
that same year.
Still owes the IRS $7 M in taxes!

20. Bought a house in New York, Rhode Island, New
Orleans, Newport Beach, San Francisco, Las
Vegas, Bavaria Germany, England, the Bahamas
and many other places.

21. That includes two
castles: one in
England, and the
other in Germany.
This is a picture of the
Schloss Neidstein castle
which Cage bought in
g g
2007. It has 28 rooms and
395 acres of forest.

22. He purchased 22
automobiles--
including 9 Rolls
Royces and a
$500,000
Lamborghini
Miura SVJ.
That does not yet
include his private
Gulfstream jet ($45M), as
well as 4 yachts.

23. He also had…
• A $1.6 M comic
book collection,
• A dinosaur skull
worth $$276,000,
• A penchant for
$2,000
$2 000 snacks at
k t
caviar hotspot
Petrossian,
Petrossian
• And had given at
least $3M to charity
charity.

24. It s
It’s not about what you earn
earn.
It’s about how much you can
keep.

25. Reason #3:
Financial difficulties negatively
impact employee productivity
productivity.

28. HR Issue Impact to Employer How Financial Wellness
Programs Can Address the
Issue
Turnover and Costs for replacing highly Financial education can improve
Loyalty to trained professionals can employee loyalty by increasing their
Employer
E l exceed a f ll year’s salary.
d full ’ l satisfaction with pay and benefits.
ti f ti ith db fit
61% of employees who are Employees who understand and
very satisfied with their are satisfied with their
benefits also feel a very compensation and benefits are less
strong sense of loyalty to likely to leave the company for a
their employer, according to higher paying job elsewhere.
Metlife’s 10th Annual Study
of Employee Benefits report.
Productivity Employees dealing with Financial wellness programs can
financial stress spend help employees resolve their most
company time dealing with pressing financial issues so they
their financial woes at work -- are no longer operating in a state of
as much as 20 hours per financial emergency and can be
month per employee,
employee more productive at work.
work
according to the Personal
Finance Employee Education
Foundation.

29. Society for Human Resource
Management survey says:
M t
• 49% of HR professionals said employees are
% p p y
stressed by an “overall lack of monetary
funds to cover their personal expenses.”
• 24% said money woes are l di to
id leading
“employee absenteeism and tardiness.”
• 22% of HR professionals attribute worker
money woes to “credit card debt” and the
same number also cited “home mortgage
payments.”
• 12% of HR professionals said “education
expenses
expenses” were causing workers’ financial
workers
stress that was noticeable in the workplace.

30. “Financial literacy training makes employees
and managers more knowledgeable. A spin- spin
off is that employees feel taken care of. And
with greater financial literacy and
confidence, they are usually more
productive while working and less
distracted b fi
di ”
d by financial woes.”
i l
» Ri H i HR M
Rita Harris, Manager, G
Greenberg F
b Farrow

31. Generic Financial Literacy
Programs
vs.
Comprehensive Financial
p
Literacy Programs

32. Generic Financial Literacy Programs
• Usually short talks (1 to 2 hours) on general
principles you should follow to become more
fiscally fit (Save. Live within your means.
Avoid debt.) )
• Gives mostly information on how to prevent
financial distress, but offers little concrete
advice t th
d i to those who are already i di t
h l d in distress.
• May mention investment options (stocks,
bonds,
bonds mutual funds) but do not discuss how
to start investing.
• Good as an eye-opener but rarely results in
y p y
behavioral change.

33. Comprehensive Financial
Literacy Programs
• Can be short talks, but tackling specific
issues in depth (I.e. saving up for retirement,
getting out of debt, investing in stocks,
tti t f d bt i ti i t k
bonds or mutual funds).
• P
Program ideally would cover:
id ll ld
– Preventive information
–RRemedial assistance and advice f th
di l i t d d i for those
experiencing financial crisis
– Productive information for those considering
financial opportunities

34. Sample Topics for Preventive
Education
• How to spend less and save more
• Creating financial plan f your f t
C ti a fi i l l for future
• Setting up an emergency fund
• Saving for your children’s education
• Planning for your retirement
• Protecting yourself and your family with
insurance

35. Sample topics for those in
financial stress or distress
• Getting out of debt
• How to get emergency loans
• Taking charge of your finances

36. Sample topics for those
considering financial
opportunities
• Stock Market Investing for Beginners
• Investing in Mutual Funds for Beginners
• Fixed income instruments for Beginners
• Forex trading for Beginners
• How t Start a Business with S ll
H to St t B i ith Small
Capital

37. Capital Gains
C i l G i (MER)
2003 2007 2010 2012
P8.73 P90.45 P 190 P 224
TOTAL CAPITAL APPRECIATION:

38. Global Trends and
International Best Practices on
Financial Literacy Programs

39. Best Practices
• Make sure company policy and benefits are
integrated into the module or program.
• Educate throughout the year.
• Actively promote company financial literacy
programs t your employees.
to l
• Offer one-on-one financial coaching and advice to
your employees
employees.
• Measure results by conducting a financial fitness
test before and after the program.
p g

40. Case Studies
• IBM has its “Money Smart”
program for its US
employees. This program
provides in-person and
web-based seminars, one-
on one
on-one planning sessions
and online tools that cover
issues such as managing
debt and housing
expenditures.
• More than 60,000
employees have already
participated in the program.

41. Case Studies: Mountain
America Credit Union
• 5 weeks after their
training program:
– 98% h d an
had
emergency account
compared to 61% at
the beginning
th b i i
– 84% knew their net
worth compared to
p
12% in the beginning
– 11% reduction in
consumer debt

42. Steps in Implementing a
Successful Financial Literacy
Program in your Company
• Secure the support of senior management and
iron-out any budgeting issues for the program.
• Ask employees what topics they would like to have
covered.
• Invite speakers and/or training p
p g providers to
conduct the talks. Make sure speakers customize
module to include company policies and to answer
your employees’ needs.

43. Steps in Implementing a
Successful Financial Literacy
Program
• Choose presentation type, such as pre- or post-
working h
ki hour sessions, l
i lunch and l
h d learn sessions
i
or teleconferences / webcasts.
• S l t date/s and ti / f the program.
Select d t / d time/s for th
• Promote the program through internal
communications four to six weeks before the first
session. Send a reminder the week of the
presentation.
presentation At the end of the presentation
presentation,
promote the details for the next presentation.

44. “Knowledge is only potential power. Real
Knowledge
power is when you put your knowledge
into action. To achieve financial
freedom, you need to take action.”

45. Thank you!
For inquiries about our comprehensive financial
literacy and other training programs please feel
programs,
free to call us at 975-9559 / 623-9601 or e-mail
us at hello@bizwhiz.com.ph :)