Financial Literacy Workshops: Overview, Purpose, and Benefits
Overview, Purpose, and Benefits of In-House Financial Literacy Workshops
Despite money's critical role in day-to-day life, financial education — especially accessible financial education — isn't prioritized, leading to an inferior quality of life that affects every aspect of an individual's — and their family's — life.
Enter financial literacy workshops.
Financial literacy workshops make personal finance and financial literacy accessible to everyone. These workshops impart knowledge about managing an individual's or household's finances to achieve specific financial goals and attain overall financial well-being.
What is a Financial Education Workshop?
Financial education workshops, webinars, and digital courses are intended to teach financial literacy concepts and the implementation of these concepts to attendees.
These concepts improve how attendees view and interact with money and their choices. The concepts also embrace financial wellness as a foundation of personal well-being and professional fulfillment.
Why Financial Literacy Matters?
Financial literacy is essential because it enables individuals to leverage their finances irrespective of their income bracket or circumstances.
La Escuela del Dinero understands this and uses our resources and knowledge to impart practical financial education to help build financial literacy among Spanish-speaking individuals, families, and communities — carving a path to lasting wealth generation.
Financial literacy among Latinos and Hispanics is especially important because despite contributing $2.3 trillion to the U.S. GDP, only 23 percent of Latinos and Hispanics are considered financially healthy. Seventy-two percent of Spanish-speaking U.S. households are in debt and have a 50% debt-to-asset ratio.
And most shockingly, more than two-thirds of Hispanics are not saving for retirement or have grossly inadequate retirement savings.
This means that regardless of the income bracket, most Spanish-speaking households will experience debilitating financial stress that prevents them from living productive lives.
Escaping short-term or lingering financial stress is only possible through financial literacy training.
What is the Goal of a Financial Literacy Workshop?
Financial education training is the most effective use of a corporate training budget as it enables a business to provide employees and teams with practical skills that support improving company profits.
Financial literacy training aims to invest in your business by investing in people.
How is this possible?
Giving individuals financial literacy helps develop stronger teams, increasing productivity and several other metrics equating to better profit margins.
Financial literacy reduces financial stress.
Financial stress is a form of worry or anxiety about money.
While 60 percent of American adults report experiencing financial stress, Hispanics experienced financial stress more than any other demographic, with 75 percent of Latino adults revealing money being their only stressor.
Consistent stress reduces productivity by increasing absenteeism, reducing workplace engagement, and accelerating employee churn.
Financial literacy combats these resource drains by improving employee fulfillment and reducing workplace stress, as individuals are better equipped to manage their income and feel a greater sense of income satisfaction and overall empowerment.
What are the Five Aspects of Financial Literacy Training?
Understanding the benefit of financial literacy workshops or training for an individual or business is vital in selecting the type of financial training that should be pursued.
The level of financial education will depend on the type of financial literacy workshop or financial education training that an individual or business chooses to invest.
Different workshops cover the five aspects of financial literacy with varying depths and intensity.
1) Budgeting
Most Americans don't prepare a monthly budget, which is understandable given that the traditional monthly budget doesn't work in these economic times.
However, budgeting is still a foundation of financial literacy, as it helps individuals allocate their income to achieve complete financial freedom.
Budgeting helps reduce debt, increases savings, and assists in overcoming compulsive shopping and irresponsible spending habits. A budget is the cornerstone of a healthy relationship with money, making it the foremost financial education training principle.
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2) Borrowing
Nearly half of Hispanics have a fair or poor credit score, with one-quarter being credit invisible and unable to access the benefits associated with a long credit history. A deeper understanding of borrowing will change that and help individuals Leverage good credit while avoiding toxic credit.
Credit is a taboo subject for many, as it is a source of financial stress, given individuals and households tend to overextend themselves. However, financial literacy doesn't villainize borrowing, as it is responsible for helping businesses and individuals thrive in a capitalist society.
Borrowing is a principle of financial education to be mastered when achieving financial stability.
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3) Investing and Retirement
Investing is a pillar of wealth creation and achieving personal fulfillment through money.
For most, investing and retirement will be connected, as the latter can only be achieved comfortably with an investment strategy, which individuals learn to develop successfully through financial literacy workshops.
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4) Debt
A financial literacy workshop focusing on debt elimination using easy and attainable tactics aims to reduce money anxiety and enable attendees to achieve their goals, as all goals require money to attain.
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5) Personal Finance Management
The final pillar of financial education is personal finance, which focuses on an individual's understanding of money, wealth creation, money management, and relationship with money. Personal finance training prioritizes developing an extensive
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How to Get Started With Financial Literacy Training?
Begin the journey to achieve your financial objectives with a quick guide detailing how and where to find financial literacy training.
For Businesses:
Companies should be interested in hosting in-person financial literacy workshops for their staff and teams if they're serious about improving their bottom line with the most cost-effective option: motivation.
Motivation inspires action.
A motivated employee is more valuable to your business than an apathetic one. Financial literacy workshops motivate employees through financial hope and attainable goals.
To unlock that motivation, contact the La Escuela del Dinero team about in-person workshops. Let's have a discovery call so we can know your specific needs. Let's support thriving communities and they in turn adding to a more prosperous society.
For Individuals or Families:
To get started on a financial education journey, begin with a financial literacy quiz that uncovers the training you need to unlock a stable financial future.
A quiz like La Escuela del Dinero's financial self-assessment will help define your starting point and financial aptitude, so that you can be paired with the courses that will be most beneficial to you — helping you save money by avoiding unneccessary training.
Do our quiz or download our free and paid digital products at: gumroad.com/escuela_dinero