Financial education for many people is one of those things that is important but never urgent and there is always something better to do, even if that is the housework! For some it is downright boring. We know we are exceptions that actually find this subject interesting, but we also know the value of this knowledge. Demystifying the world of finance can empower you (and your staff) to better decisions and a happier living environment with better workplace engagement when you work with someone like Black Swan Capital Europe.
Here are 5 reasons why you should consider getting financially literate, and if you have international staff, why it’s a good investment to educate your employees.
1. International Professionals live in a complex financial world
Staying on top of your finances can be complex enough, when you are living outside your home country you have many more issues to deal with. You are often juggling two or more currencies and managing dynamic exchange rates, interest rates back home and abroad, and returns on pensions in different countries, not to mention avoiding pension gaps. You may have multiple tax jurisdictions that you have to comply with and then you have the added complexity of living in a new place with different financial and cost structures.
All these reasons point to the importance of speaking with an independent professional like Black Swan Capital, but you should also undertake steps to become more financially savvy and understand the potential impacts on, and opportunities for your plans.
2. Financial Education can make your employees happier and more productive
Financial literacy has benefits for individuals and businesses. We have written about that previously here. Most employees are interested to learn about financial literacy and appreciate it being offered in the workplace. It has been documented in several reports and studies that staff that receive financial literacy often report lower stress, less absenteeism, higher productivity and greater work satisfaction. We provide that financial education to individuals and companies that is specific to expats and internationals so it is tailor made to your life.
3. The Retirement Model is Changing and Social Security is Coming to an End
The social security pension for life is fast coming to an end. The change in intergenerational dynamics, smaller birth-rates and ageing populations in many countries mean that governments can no longer afford to provide retirement pensions to its citizens. You will need to be smarter in how you plan for retirement than generations past. Being financially educated will greatly help you to understand your options and to work closer with your financial and investment adviser.
4. You may Live Longer
This is the other important demographic shift in concert with the ageing population above, meaning there are more older people in society, and we are living longer. Life expectancy has increased markedly in the last 50 years. This means we can expect a much longer life, and a much longer retirement which needs to be funded (because as stated above, the social security pillar is being diminished and cannot be relied upon). Being prepared and able to manage your assets and income retirement can help you to achieve a satisfying quality of life.
5. A Dynamic Landscape
The way we interact with financial institutions and in fact most service providers is changing. We are expected to make online and mobile financial transactions and to manage our finances from an app. This can include making financial decisions. This can deliver freedom and more options but for some it can be daunting. Being financially educated and aware is an important protection to ensure you understand what you are being asked and the actions you are taking. It is also a useful protection against the dark side of the internet and the world we live in. This self-protection through education extends to knowing where to look and how to check that the person or institution you are dealing with is appropriately licensed, qualified and regulated- financial education can keep you safe.
To start increasing your financial knowledge you can read our past articles on our website here.
For those of you living in and The Netherlands we are hosting a financial education seminar, Money Matters, on 4 December 2019, at our head office in Amsterdam, look out for the invitations and come along to learn more about managing your finances as an expat in Europe.
You can also speak
with us about engaging financial education programmes at your workplace or
association, the benefits are real, and you may even find it interesting!
Finally, you can always ask us a question about
any aspect of your financial life that you would like clarity.
EY Financial Wellness Report, https://www.ey.com/Publication/vwLUAssets/EY-employee-financial-services/$FILE/EY-employee-financial-services.pdf
Oswald, Andrew J. , Proto, Eugenio and Sgroi, Daniel. (2015) Happiness and productivity. Journal of Labor Economics, 33 (4). pp. 789-822.
2017 Workplace Benefits Report, Bank of America.
Inside Employees’ Minds Financial Wellness Report, Mercer, 2017.