Young workers need more education, report says

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The latest Global Financial Wellbeing Report, an annual report by financial wellness platform Nudge, shows that family planning is an increasingly important part of younger employees’ financial goals. According to experts associated with the report, which surveyed more than 11,500 people around the world, employers can best help employees interested in family planning by offering more and better financial education.

Although a majority of young employees across the board report being interested in financial planning as it relates to family building, there are significant differences between gender demographics. Among American employees aged 25-34, 76% of women are planning their finances to start a family, compared to 84% of men. What’s more, 69% of women are planning to cover costs associated with adoption or fertility treatments, compared to 77% of men.

Financial confidence also varies across demographic groups and global regions. In the United Kingdom, for example, 88% of men exhibit financial confidence compared to 77% of women. In fact men report higher levels of financial confidence across most regions: North America, APAC, and EMEA. Latin America is a notable exception, where 94% of women are financially confident compared to 92% of men.

According to the report’s authors, these young employees would best be served by greater financial education opportunities, “The need for financial education is evident, as 82% of employees worldwide agree that a better understanding of their finances will help them achieve their life goals. However, when it comes to receiving financial education support from their employers, one third (33%) of employees globally do not feel they have a solid understanding of the benefits their companies offer or how to fully utilize them.”

Tim Perkins, Nudge co-founder, reiterated the importance of financial education for younger employees, saying, “Data from our report underscores the necessity for financial education worldwide. However, an extensive lack of knowledge about employer-provided benefits exists among employees, which is particularly significant for employees who are beginning to plan for a family. Impartial financial education becomes an essential pillar in supporting their journey.

“It’s not just about making them aware of the benefits they are entitled to, but also about helping them understand how to make the most of their benefits. Empowering employees to make informed decisions that positively impacts their financial stability and future has been proven to create stronger relationships and greater loyalty to their employer.”

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