Competence equals confidence: Making the case for offering financial literacy in the workplace

July 22, 2025

Drew Maginn

Most companies offer some type of financial literacy education to their employees, usually as a small part of an employee benefits plan or as a focused campaign during Financial Literacy Month in November. But managing personal finance challenges is becoming the norm in Canada, and there is no doubt that a greater focus on financial education would be welcomed by many employees.

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What is financial literacy and why is employee financial wellness so important?

According to the Government of Canada, financial literacy is all about “having the knowledge, skills, and confidence to make responsible financial decisions.” While the definition is fairly straightforward, improving the financial literacy of your workforce is a bit more complicated. A recent Ipsos survey shed light on this issue, reporting that 43 per cent of Canadians say they need help to get themselves out of debt. And while most agree that individuals shouldn’t feel a sense of shame when seeking help, 53 per cent still believe it would be difficult for them to trust professionals to help mend their financial situation. These findings show just how important it can be for employers to step in to bridge this gap.

How does improving employee financial literacy pay dividends for employers?

So why should employers care about an employee’s financial well-being outside of the office? Because a lack of financial stability can cause significant stress, and employees bring the effects of that stress into the workplace through decreased productivity, attendance, and engagement in their jobs. (By contrast, employees who are confident in their money management skills are more likely to be productive, attentive, and satisfied on a day-to-day basis.) These linkages become clearer when it’s broken down in dollars and cents. For example, the Financial Consumer Agency of Canada estimates that in a company with 200 employees, the stress of personal finances can amount to 7,521 hours of lost productivity per year, which equals $1,000 per employee, or upwards of $200,000 per year.

” Whether it’s through a dip in performance, an emerging mental health issue, or a sudden change in attitude, it is important that employers embrace financial literacy as a critical part of their benefits and employee engagement plans. ”

What are common money management challenges your employees might be facing?

When it comes to prioritizing opportunities for education and support, it’s best to start with the most common challenges employees are managing, which include:

High levels of debt (e.g. debt repayment plans, managing different types of debt);
Lack of personal savings and living paycheque to paycheque (e.g. budgeting, expense tracking);
Not planning for retirement (e.g. basics of Canada Pension Plan and Old Age Security, contributing to Registered Retirement Savings Plans and Tax-Free Savings Accounts); and
Limited knowledge of how to invest (e.g., introduction to the stock market, building a portfolio, how to work with a financial planner).

If these topics feel too general, use them as a jumping off point, as you can always dig into more detail once you get a better understanding of how engaged your employees are with these topics. To gather engagement, send staff feedback surveys, monitor attendance at training opportunities, or ask your benefits provider to track the most frequently requested areas of support.

Embedding financial literacy in your workplace benefits program

As our understanding of the importance of financial literacy in the workplace has evolved over time, so too should the commitment to formally include it as a key part of an employee benefits plan. Financial literacy programs should be actively promoted, address a variety of different topic areas, and offer a range of tools, services, and supports. This could include access to:

Financial planning workshops and webinars;
Self-directed online courses;
One-on-one coaching sessions; and
Tools for budgeting, saving, and investing.

Beyond offering diverse entry points into these kinds of programs, employees will bring a variety of personal and professional experiences that may require tailoring information to different financial literacy levels (e.g. beginner, intermediate, advanced), different backgrounds (e.g. financial planning to care for parents is more common in certain cultures), and different stages of life (e.g. young professionals, parents/guardians, individuals approaching retirement).

Lastly, be aware that discussing financial matters can be challenging, and employees will need to know that they are able to access programming in a confidential, non-judgemental environment. If you have employees who have benefited from this support, see if they would be willing to speak with others or become an ambassador at your workplace. Employees are more likely to trust the advice of their colleagues than a representative from your benefits provider who may only engage with them once or twice a year.

As much as some employers may have the expectation that their employees’ personal finances should stay personal, there is no doubt that the stress associated with financial struggles is bound to find its way into the workplace. Whether it’s through a dip in performance, an emerging mental health issue, or a sudden change in attitude, it is important that employers embrace financial literacy as a critical part of their benefits and employee engagement plans. Without it, you might find your business losing both time and money as a result of employees who are less concerned about the status of their workload and more concerned about the status of their bank account.

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