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mO n E ysm a r t
sE p | Oc t 2012
En t r E p r E n E u r s’ Di g E s t
Sense
Allow your employees to acquire knowledge and skills to manage their day-today
finances, make prudent investments and plan for their longer-term needs
Financial literacy is an important facet
of any business, since monetary
transactions are still a critical
component within any enterprise. While it
is paramount for the key decision-makers
to have a good grasp of their financials,
the employees within the organisation –
especially small and medium enterprises
(SMEs) – can also stand to benefit from
enhanced pecuniary knowledge.
Why is the need for employees to
have financial literacy important to
SMEs?
Well, the first thing would be educated
employees who know how to juggle
their income and expenses. There has
been an increase in demand for financial
planning services among employers:
this means that the employer will fully
pay for the financial planning services
and this service is offered as a benefit to
employees.
gETTINg
YouR EMPloYEES’
FINANCES RIghT
“Employees equipped with financial
literacy – the skills to make sound financial
decisions for themselves and their
families – are less likely to be burdened or
distracted by personal financial matters
while at their workplaces. As a result, they
will be able to contribute more effectively
to the growth and success of the SME,”
said Dr Alex Lum, Director of the Institute
of Financial Literacy, MoneySENSE –
Singapore Polytechnic.
• Employees’ efficiency
Through good financial planning,
employees and their families will
enjoy greater peace of mind. With
that, your employees are able to
devote full concentration on their job,
are not distressed due to financial
problems, and are able to work
effectively and efficiently during
working hours. Bear in mind that if
your employees are obsessing over
their finances, it is difficult for them to
be productive at work.
• Employee retention
Of course, the benefit of incorporating
financial planning as part of an
organisational culture does not
directly have an effect on retaining
your employees. However, the
heightened awareness of the value
of the employee benefits will help
retain a valued staff. Furthermore,
instilling confidence in the value of
staying with the same employer will
make your staff less likely to spend
time and attention scouting for other
jobs.
• Corporate goodwill
It can also be part of your corporate
goodwill when your company
advocates financial planning as part
of your staff benefits. The sheer
knowledge that your company takes
good care of its people will be well
appreciated by the employees
themselves as well as their families.
With the recent constant cycle of financial tsunamis and crises, companies can
do more by coming out in front of all these and help their employees better
manage their finances through these tumultuous periods.
As your company processes the bonuses and Annual Wage Supplements (AWS)
for employees, it is perhaps a good time to also educate them on managing their
income, spending and debt, as well as set aside certain amounts for savings and
investments.
A nationwide financial education programme called MoneySENSE was launched by
then-Deputy Prime Mininster Mr. Lee Hsien Loong on 16 October 2003, who was
also the Chairman of the Monetary Authority of Singapore at that time. The primary
purpose of MoneySENSE is to bring together industry and public sector initiatives to
enhance the basic financial literacy of Singaporeans.
The MoneySENSE Core Financial Capabilities were laid out to help consumers work
towards managing cash flow, buying a home within their means, providing for their
healthcare needs and having sufficient income for life.
Selecting financial
products suitable for you
Planning ahead
Five Core Financial Capabilities
Understanding Money
Investment
know-how
Financial planning
Basic money management
Managing everyday
money
Understanding yourself,
your rights and
responsibilities
• Understanding Money
Having the numeracy skills to evaluate the costs and benefits of options available, it is
also about understanding how economic conditions can affect consumers.
• Understanding yourself, your rights, and responsibilities
Knowing how personal circumstances, like how much a person earns, his or her age,
the number of children he or she has, affect his or her financial decisions. It is also
important to know your rights and responsibilities as a consumer.
• Managing everyday money
Being able to budget, to live within one’s means and to use credit facilities responsibly
(e.g. for major items like buying a home).
• Planning ahead
Being able to put together a financial plan to help one manage resources (e.g. income,
debt, savings and investments) prudently.
mO n E ysm a r t
• Selecting financial products
Understanding the purpose, features,
risks and costs of common financial
products (e.g. debit and credit cards,
loans, insurance, and investments), the
key factors to consider and questions to
ask before deciding whether to take up
a product.
These core financial capabilities build
on and complement the three aims of
MoneySENSE, which are – basic money
management, financial planning and
investment know-how.
The MoneySENSE – Singapore Polytechnic
(SP) Institute for Financial Literacy will
deliver financial education to equip
Singaporeans with the core financial
capabilities as aforementioned, for FREE.
In order to provide your employees with
the opportunity to learn more about how
to manage their own finances better,
the Institute is able to provide financial
education programmes in various modes
to cater to the various companies and
agencies, including:
• Talks and workshops brought to
workplaces (e.g. offices and factories)
– making it convenient for working
adults to learn more about money
matters.
• Public talks and workshops
conducted at public locations (e.g.
libraries and community centres),
making financial education easily
accessible to consumers from all
walks of life.
• e-learning modules to cater to your
employees who may prefer to learn
online.
MoneySENSE has over the last nine years
published over 253 educational articles
in the media, organised talks, seminars
and workshops that have attracted over
93,000 participants as well as issued 20
consumer guides with a total circulation
exceeding 2.2 million.
With this educational initiative, your
employees can have improved financial
literacy which will help boost workplace
productivity.
For more information, visit http://finlit.sg/
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En t r E p r E n E u r s’ Di g E s t
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