It’s Global Money Week.

It’s Global Money Week.😇

So I thought to share some thoughts on financial literacy.

Financial literacy is an important aspect of personal finance that can greatly impact an employee’s overall well-being. When employees struggle with personal financial issues, it can have a significant impact on their physical, emotional, mental, and social health.

The term covers the knowledge and skills necessary to make informed and effective decisions about managing money. This includes understanding budgeting, saving, investing, credit, and debt management. When individuals lack financial literacy, they may make poor financial decisions that can have long-term consequences.

Personal financial issues can have a physical impact on employees. Financial stress can lead to poor sleep quality, fatigue, and even physical illness. Financial stress can also lead to unhealthy coping mechanisms such as overeating or substance abuse.

2022 PWC Employee Financial Wellbeing Report

Emotionally, personal financial issues can take a toll on individuals as well. Financial stress can cause feelings of anxiety, depression, and hopelessness. It can also strain relationships, both personal and professional.

Mentally, financial stress can lead to decreased productivity and concentration at work. It can also lead to increased absenteeism and turnover rates. This can have a negative impact on both the employee and the company.

Socially, financial stress can lead to feelings of isolation and shame. Employees may be hesitant to discuss their financial struggles with colleagues or supervisors, which can further exacerbate the problem.

In conclusion, financial literacy is crucial for individuals to make informed decisions about their personal finances. When employees struggle with personal financial issues, it can have a significant impact on their physical, emotional, mental, and social health. Employers can support their employees by providing financial education and resources to help them manage their finances effectively.

Anyways, I work at Mkobo Microfinance bank, and we have built a solution called Earlypay, an earned wage access solution designed to help improve an employee’s financial wellbeing .

We observed that many employees have resorted to personal loans with high-interest rates, which can trap them in a continuous debt cycle.

Earned Wage Access (EWA) is an interest-free pay that gives an employee access to their wages as they earn them. When it’s payday, the amount accessed in advance is withdrawn automatically from the salary with 0% INTEREST.

Would you like to learn more about Mkobo’s EarlyPay — An Earned Wage Access Program and how it can benefit your employees or organization?

Send me a message at growth@mkobo.com.ng