Part 1 in a 3 part series on defining financial literacy in the workplace. Part 1 explains what makes an effective financial education program for employees.

1. Financial Literacy for Employees
Understanding what makes an effective
financial well-being program
Part 1
WHITE PAPER

2. If the recession put anything into perspective, it’s that
when a person’s finances suffer, so too does their
health and well-being. Over the last four years, the
United Kingdom’s National Health Service saw a
43% rise in antidepressant use; the rise, some experts
say, is likely the result of mounting financial pressures.
When people are worried about money, it’s often
difficult for them to focus at work. Studies show
financially stressed employees spend hours dealing
with personal financial issues while on the job. When
this happens, productivity drops and engagement
falls. Some workers come in and don’t get much done,
and others just don’t bother coming in.
It’s been shown that educating employees — using an
experienced, accredited third-party financial educator
— on how to manage their finances properly can
alleviate much of this stress. However, the discussion
around employee finances must focus on more than
just pensions and benefits. Education needs to be
comprehensive; it must include a range of topics from
managing debts to taxation and income planning.
This allows virtually every employee to participate in
the program.
So why do so many programs fall short? Why doesn’t
the information given by benefit and pension providers
lead to real change? Information is not education.
Information is given (and forgotten). Education is taught
(and learned)!
Fortunately, there are many ways to deliver this
education. Depending on the budget, webinars, group
seminars and one-on-one training are the most effective
methods. Programs need to be flexible: what will work
best will depend on each individual business.
Most employees don’t take the time to seek out help on
their own, which is why research shows that employees
want to receive this type of education at work and from
a third-party professional who does not sell product.
But what exactly is financial education in the
workplace? This paper will answer that question
and explain everything from what type of
information should be offered, to how it should
be delivered, who should give it and more.
Executive Summary
© 2014 Employee Financial Well-Being
2
of employees WANT
financial education!
87%
60%
of businesses believe
employee financial
education will improve
productivity with
32% didn’t know.

3. Challenges companies are facing
Businesses worry about a lot these days:
productivity, engagement, the economy,
employee morale, staff stress, wellness and
much more.
The pressure to find solutions for increasing productivity
and engagement while reducing costs and increasing
revenues has never been more difficult. Declines in
global demand with increased global competition
make it very difficult for businesses to spend money
on employees and more often has resulted in greater
cutbacks including layoffs.
These conditions have had a direct impact on
employees and their confidence and commitment
at work. The result is the exact opposite of what
businesses need.
Employee financial education can help to restore the
confidence and commitment of the employees to
restore the productivity and engagement of the staff.
The investment in a comprehensive program that all
employees can participate in will not only help the
company in the short term, it has an effect that lasts
for years!
Financial issues plaguing employers
The Economy
• 66% of business owners expect sales growth
to either remain the same or drop over the next
12 months.1
• 47% of executives think the domestic economy’s
slow growth will continue for the next one to
three years.2
Employee Morale
• 54% of executives are worried about employee
morale and burnout3
• 51% are concerned about losing top talent
Absenteeism, Presenteeism and Stress
• Employees are absent from work for nearly
1 week a year4
• 40% of employers said that work-related stress
has increased over the last 12 months
• Nearly 33% of employers have found an
increasing number of employees showing up to
the office, but not engaging with their work
of business owners
expect sales growth
to either remain the
same or drop over the
next 12 months.
Financially distressed employees
spend 13% of their workday (1 hour)
dealing with money issues6
Introduction
1
Bank of Canada. Business Outlook Survey, October 2012. 2
Canadian Business, Compas Inc. CEO Poll: When Will the Economy Recover? April, 2012. http://www.canadianbusiness.com/article/81332--
ceo-poll-when-will-the-economy-recover. 3
Benefits Canada. Employee Burnout Top Concern Among Firms, March 2011. http://www.benefitscanada.com/news/employee-burnout-top-concerns-among-
firms-14864. 4
Chartered Institute of Personnel and Development. Absence Management Survey, October 2012.
© 2014 Employee Financial Well-Being
3
66%
1 hour/day

4. Financial issues plaguing employees
There’s also a lot your employees are worrying about.
High absentee rates and higher incidences of stress
have to do with how employees are feeling at home
and at the office. Finances and work life are cited as the
two biggest sources of anxiety for the majority
of Canadians.5
80% of Canadians believe their employers should play
a role in helping to manage stress.6
Money
• 61% of workers cite money problems as their
leading cause of stress7
• 25% of people say debt is their main concern
• 45% feel their level of financial stress today is high
too overwhelming
• 24% say the economy is their biggest worry
Work
• In April, 28% of Canadians thought there would be
fewer job prospects by the end of the year8
• 14% of people are unsure about job security9
When employees worry about money and job
security, productivity and work engagement
suffer.
Top three work time use statements:10
• 30% of employees took time to handle personal
financial matters
• 22% spent time worrying about personal finances
• 17% talked with a coworker(s) about money
problems
People with high debt stress also face many
health-related issues:
Introduction
4
27%had ulcers or
digestive tract
problems,
compared with
8% of those
with low levels
of debt stress
44%had migraines or
other headaches,
compared with 15%
6%reported heart
attacks, double the
rate for those with
low debt stress
29%suffered severe
anxiety, compared
with 4%
23%had severe
depression,
compared with 4%
51%had muscle
tension, including
lower back pain,
compared with
31% of those
with low levels of
debt stress
11
indicated distress
over financial
matters contributed
to irritability,
anger, fatigue and
sleeplessness.
More than 52%
5
Sun Life. Sun Life Health Index: 2012 Canadian Health Index Report, November 2012.
6
Atkinson, W. Drowning in debt, HR Magazine, 2001. 7
Desjardins. Canadian Workers Feel More
Financial Stress in 2009, June 2009. 8
Canadian Press. Consumer Confidence Reverses Course As
Canadians Worry About Jobs, Finances, April 2012. 9
Thomsons Online Benefits. Job Security Still
Among Top Concerns For Global Consumers. July 2012. 10
Jinhee Kee and E. Thomas Garman,
Financial Stress, Pay Satisfaction and Workplace Performance, January/February 2004. 11
Aversa,
J., Associated Press. Stressed Over Debt Taking Toll on Health, 2008.
© 2014 Employee Financial Well-Being

5. “Give a man a fish and you feed him for a
day. Teach a man to fish and you feed him
for a lifetime.”
— Chinese Proverb
Workplace financial education should be more than
an information session, a glossy brochure or fancy
tools on a website.
Employees must be able to relate to and put into
context the information they learn. They must be able
to apply the lessons they learn to their daily life and
that only comes through education. Simply handing
out materials, pointing employees to a website or
talking at them won’t get the message across or
change behavior.
“There are many great websites, books and
resources that can make employees financially
literate and the problem is that none of the
resources educate. People find these tools
and don’t know where to start or what to do —
that is where an educator comes in to deliver
real change,”
says Frank Wiginton, CEO of Employee Financial
Well-Being.
Employee financial stress will only decrease if
comprehensive and customizable financial education is
taught in the workplace. Employees need to be taught
by qualified educators and shown how to use tools and
resources in the proper context in order to learn how
to get their own finances in order. If not, money-related
problems will persist.
“Information is not
education. Information
is given – education
is taught!”
­— Frank Wiginton, CEO of Employee Financial
Well-Being
It’s About Education, Not Information
© 2014 Employee Financial Well-Being
5

6. With companies that provide financial information,
60% is based on pension and retirement planning,12
even though it’s debt and personal finances that
employees are most worried about. While some
companies said they do offer other types of financial
information, topics such as budgeting, debt
management, education savings, goal setting, RRSP,
TFSA and investing were low on the priority list.
Pensions are an important part of the discussion, but
planning can’t be done in isolation. During the Financial
Education in the Workplace Roundtable 2012, which
was hosted and moderated by the Employee
Financial Education Division, Jane Rooney, Director
of Financial Literacy and Consumer Education for the
Financial Consumer Agency of Canada said:
“(Financial education) needs to be put in a
broader perspective. This is about financial
stability, which is what really matters to bottom
line. The discussion needs to be broader than
just pension benefits.”
The education needs to focus on making employees
more financially self-sufficient and that’s not happening
right now.
At the roundtable, Don Stewart, former CEO of Sun Life
Financial, said:
“It’s incumbent on the employer to help
employees become more self-sufficient
financially. That has to be the prime
motivation here.”
Studies show that when people are given financial
advice, whether through an employer program or on
their own, returns improve. Those who seek financial
advice see their assets grow by 1.58 to 2.73 times
more than those who don’t get help.13
Employers are now starting to realize that more
comprehensive financial education is needed. When
business owners were asked if their company will
consider offering a more comprehensive financial
well-being program, 84% of respondents said
possibly or yes.12
It’s evident that financial education is required.
When employees receive a comprehensive financial
education, it helps them to put all of life’s financial
aspects into context and empowers them to make
better decisions and have a better quality of life. In turn,
they come to work as happier, more productive and
engaged employees.
of employees have
not sought any
financial advice in
the last 24 months!
There’s More to Finances Than Pensions and Retirement
12
Employee Financial Education Division. Financial Education for Employees Survey. October 2012. 13
Canadian Press. Canadians Need to Spend More Time and Energy Finding Financial Advisors: Experts,
October 2012.
© 2014 Employee Financial Well-Being
6
51%

7. Topics that financial education in the
workplace must address
Leading Canadian financial experts agreed that
a comprehensive financial well-being program
should at least teach employees how to do the
following:14
• Set and achieve goals
• Build a net worth statement
• Build a cash flow statement
• Income and debt management
• Determine life insurance needs
• Retirement planning
• Investment management
• Tax Planning
• Create a Will, Power of Attorney and
Personal Care Directive
“The goal is about helping people make better
decisions. You can make great decisions around
benefits, but then make bad decisions at home,”
Laurie Campbell, Executive Director of Credit Canada
Debt Solutions, said during the roundtable.
Gary Rabbior, President of the Canadian Foundation for
Economic Education added:
“Saving for kids’ education, managing credit,
knowing basic investment tools: that’s what’s
important.”
Frank Wiginton said:
“When educating employees on pensions and
benefits, I get a lot of questions from employees.
Most of these questions relate back to the
individual’s basic personal finances and not
understanding how the benefits relate. It clearly
demonstrates that without educating employees
on the basics, there is little value in educating
them on their benefits.”
Offering comprehensive and customizable
education
While financial education offerings should cover all
bases, it must also allow for some degree of flexibility.
Not every topic will apply to every employee or every
employer. At the roundtable, the financial experts
agreed that while the basics should be included in
workplace financial education, other aspects could
be optional.
“Let whoever is (sponsoring) it decide. They
might say ‘the highest reason for absenteeism
is caring for aging parent.’ Let them address
that issue,”
Gary Rabbior said.
Requests for financial
counselling increased
at twice the rate of all
other EAP services.
Financial Education Must Start with the Basics
14
Employee Financial Education Division. Roundtable on Financial Education in the Workplace. October 2012.
© 2014 Employee Financial Well-Being
7

8. Preferred employee formats to receive
financial education:
Studies have found that a blend of many methods work
best, though some are more effective than others and
some are considerably more expensive than others.
Employees who attend financial education seminars
had participation rates in work-related retirement
savings plans, 12% higher than those who were offered
no seminars.15
80% of employees took steps to improve their financial
health after attending a one-on-one session.16
Marie Donnelly, Vice-President Consulting,
Communication Practice at Aon Hewitt, said the format
“needs to be appropriate to the audience.”
For instance, younger employees may want parts of
lessons delivered through social media. One survey
shows that 42% of Facebook users check the site
every day and that 57% of people find financial-related
social media messages helpful.17
Frank Wiginton countered that
“social media messaging can be great for follow-
up messaging and without first educating the
employees and giving them context to relate
those message, the impact of the social media
and messaging is dramatically reduced.”
Two themes that came out of the roundtable on financial
education in the workplace was that education material
has to be easily digestible and it has to be delivered in a
format where an educator is leading the program.
Jane Rooney commented:
“Self-study and recorded webinars don’t give
a person the ability to ask a question. That’s
where a lot of the value comes from. Facilitators
help provide discussions. People want to
hear stories.”
Gary Rabbior has found that most delivery methods
can work as long as participants trust the facilitator.
“It’s about a sense of trust. Materials were also
important, but ultimately it comes down to trust.”
When doing in-person education seminars, smaller
groups work better. Rabbior has found that having
10 to 12 people in a group works best. Beyond
that, facilitators can’t give each attendee the proper
attention. This, along with one-on-one counseling, may
be most effective — though it is also very expensive
and time intensive.
Education materials
have to be digestible
and delivered in a
format where an
educator is leading
the discussion.
Best Delivery Methods for Financial Education
15
Bayer, Patrick, Bernheim, Douglas, Scholz, John. The Effects of Financial Education in the Workplace: Evidence from a Survey of Employers, September 1996. 16
Principal Financial Group. Face-to-Face
Education Drives Better Retirement Savings Behaviour, July 2012. 17
O’Neill, Barbara, Zumwalt, Andrew, Gutter, Michael, Bechman, Janet. Financial Education through Social Media: Can You Evaluate Its
© 2014 Employee Financial Well-Being 8
LEARNING
EFFECTIVENESSCOST
EMPLOYEE
PREFERENCE
#1 in-person seminars
one-on-one coaching#2
live webinars#3
self-study/video tutorial#4
self-study workbook and guides#5
social media and short clips#6
#7 blogs/e-mail/newsletter articles

9. The individual who delivers the education
is as important as the education being
delivered
Avoid liability by using a third-party professional.
A vast majority of employees and employers think an
accredited independent third-party educator should do
the training12
.
According to law firm Borden Ladner and Gervais
(BLG), hiring an outside professional to lead financial
education can protect your company from potential
legal actions.
“Words matter. Employers need to remember
that they may be legally responsible if they
provide incorrect facts or bad advice to their
employees. (…) When you hire an outside
consulting firm to provide financial education,
you benefit from their expertise. This is
particularly important if your company does not
have that expertise itself. If you select the right
consultant and put the right agreement in place,
this may also protect you from liability.” 18
In another BLG report, the author writes:
“What happens if the plan provider — or
company — doesn’t have the necessary
expertise to provide financial education?
It’s not an excuse to plead ignorance. If the
plan provider lacks knowledge or expertise,
it must educate itself or hire someone with
the necessary skills.” 19
Accredited financial educators are key
80% of employees and 82% of companies believe it is
important to have an accredited financial educator
providing the education.12
While an independent third-party is important, the key is
that he or she is accredited. Fortunately, many financial
educators do have the CFP — certified financial planner
— designation.
During the roundtable discussion on financial literacy
in the workplace, Lana Thompson, Director of Industry
Engagement at the Financial Planning Standards
Council, commented:
“Accreditation is very important. My fear
would be to have someone who didn’t have
the knowledge giving information that wasn’t
correct. It’s hard enough to get employees
engaged. You don’t want them to get wrong
information.”
Many people already trust accredited professionals —
reports show that 10 million Canadians are currently
using some type of financial advisor.20
This statistic
proves that people trust financial professionals and
want advice from them. It only makes sense, then,
to have an accredited professional teach financial
education in the workplace.
of companies stated
the company itself
provided the financial
education
Educators Must Be Accredited, Experienced and Unbiased
9
18
Kremer, F. Markus. A Litigation Lawyer’s Perspective on the Benefits and Risks Associated With Providing Financial Education to Employees, 2012. 19
Harrison, Andrew. Understanding Pension Providers’
Obligations to Provide Financial Education, March 2012. 20
Marowits, Ross, The Globe and Mail. Financial Advisers Aren’t Just for the Rich and Nearly Retired, October 2012. http://www.theglobeandmail.
com/globe-investor/personal-finance/household-finances/financial-advisers-arent-just-for-the-rich-and-nearly-retired/article4607809/
© 2014 Employee Financial Well-Being
57%
82%
of companies
80%
of employees

10. Experienced educators make the difference
86% of employees and 87% of companies believe it is
important to have an experienced financial educator
providing the education.12
The complexities of personal finances and how they
relate to an employee’s personal situation can be
intimidating. Relying strictly on someone who has
experience in delivering training or education can
lead to misinformation or a lack of engagement in
a program.
If the educator does not have the experience in
personal finances or the experience training and
educating, the impact and effectiveness will be lost.
Worse yet, if incorrect information is given out, it could
lead to liability.
No sales pitch allowed!
87% of employees and 88% of companies believe it
is important to have an unbiased (no product sale)
financial educator providing the education.12
Most people are tired of constantly being bombarded
with sales pitches from the financial services sector.
So much so that whomever you bring in to deliver the
financial education better be independent of these
companies and not be able to sell any financial product.
Although many of the financial services
companies are very qualified to provide financial
education, their primary business objective is to
sell financial products and this alone may create
a perception of non-neutrality.
Success often comes down to who is giving the
education and if they can be trusted. As this paper
has shown, a third-party, unbiased, experienced and
accredited financial educator is the source that most
Canadians and employers trust.
Critical to the
success of a financial
well-being program
will be the educator’s
ability to give real
life examples and
field questions that
address nearly
any situation.
Educators Must Be Accredited, Experienced and Unbiased
10
© 2014 Employee Financial Well-Being
87%
of companies
88%
of companies
86%
of employees
87%
of employees

11. Studies have shown that employees want financial
education in the workplace and that many
workers aren’t satisfied with the current state
of their finances:
• 87% of employees want financial education21
• 48% are willing to pay some or all of the costs
• 51% have not sought financial advice in the
last two years
• Less than 40% are satisfied with their current
financial situation
Offering comprehensive financial education at work —
taught by an unbiased, experienced and accredited
financial educator — will help people get their financial
house in order, which helps to alleviate stress.
Reducing the largest stress for the majority of your
employees will directly impact productivity and
engagement. Organizational commitment along with
participation in benefits and pension should also see
a bump.
That will then reduce absenteeism, presenteeism
and other health issues. It also brings drug benefit
costs down, helps with mental wellness and it
can reduce employee turnover, too. When those
issues are addressed, productivity and employee
engagement rise.
Our economic and financial concerns won’t be
going away anytime soon. So now is the time to
seek an educator who can help your employees
to properly manage their money.
Comprehensive
education from a
trusted, accredited,
experienced educator
is the key to a
successful financial
literacy program for
all your employees.
Conclusion
11
21
Employee Financial Education Division. Financial Education for
Employees Survey. October 2012.
© 2014 Employee Financial Well-Being

12. 12
We develop, deliver and implement customized
financial well-being programs for businesses
with 10 to 10,000 employees. We do not sell or
manage any products and only provide financial
education services.
Education Not Information
Our programs are designed using the most modern
adult education methods to ensure your employees
are educated and not just informed.
Financial Basics and Much More
Our modules cover the entire personal finance
spectrum. Lifestyle planning, debt and cash flow to
investing, retirement, tax and estate planning make up
the core programs. Additional programs on elder care,
children’s education and executive compensation
are also available.
Available in All Formats
Seminars, webinars, one-on-one coaching, individual
financial planning, self-study, recorded webinars and
video are all available. All our education can be taught in
most formats. We will work with you to help determine
which is likely to be most successful.
Delivered by Accredited, Experienced
Professionals
All our facilitators are experienced at delivering personal
financial education. They also hold at least two personal
finance designations. This combined knowledge and
experience ensures employees’ questions are answered
and the correct information is given. It also increases the
rate of change in your employees.
Determining Employees’ Wants and Needs
We work with you by conducting a comprehensive
survey to help identify your employees’ wants and
needs for a financial well-being program. We run the
survey and conduct a few interviews confidentially
to understand the underlying financial concerns of
your employees. We use the data to build a proposal
recommending the best topics, times and formats to
ensure a successful financial well-being program.
Measuring Performance and
Defining Success
Through our proprietary methods, we assess the
employees’ financial well-being prior, during and post
education to be able to measure the change. We work
with you to define what success looks like and develop
ways to measure the performance of your employees.
Program Communication
We know that you and your team are busy running a
company. To make it easier and help to ensure greater
participation and engagement in the program, we have
developed a communications package for you to add
your names and logos to. From initial communication
from the CEO, to the ongoing communication of the
various modules, this package takes the work out of
getting employees to participate.
To discuss the goals of your business and help
your employees achieve a better quality of life,
please contact Frank Wiginton.
Financial Education – It’s ALL We Do
Frank Wiginton, CEO
Employee Financial
Well-Being
frank@employeefinancialeducation.ca
employeefinancialwellbeing.ca
416-999-7392 877-227-8201
© 2014 Employee Financial Well-Being

13. © 2014 Employee Financial Well-Being
Guide
Employee Financial Well-Being
10 steps to successfully implementing an
employee financial well-being program
Part 3
Learn More About Financial Well-Being in the Workplace
White Paper
Increase Profitability Through
Fiancial Literacy
Restore productivity and regain
organizational commitment through
employee financial well-being
White Paper
Financial Literacy for Employees
Understanding what makes an effective
financial well-being program
Part 1
White Paper
Workplace Financial Education
The benefits and rewards of a financially
literate workforce
Part 2
Guide
howtoeatanelephant.ca
Infographic 1
Financial Well-Being in
the Workplace
87%
Financial Well-Being in the Workplace
48%are willing to
pay some or all
of the costs
have not sought
financial advice in
the last 24 months
51%of employees will
participate in
financial education
86%
$2,000a year employers can save
from a financially healthy
employee
3:1or more ROI for employers who
offer employees quality financial
programs
$
during work hours
during
lunch breakat home on my own time on the weekend
Preferred formats for receiving financial
education:
LEARNING
EFFECTIVENESSCOST
EMPLOYEE
PREFERENCE
#1 in-person seminars
one-on-one coaching
#2
live webinars
#3
self-study/video tutorial
#4
self-study workbook and guides
#5
recorded webinars
#6
social media and short clips
#7
#8 blogs/e-mail/newsletter articles
of employees WANT financial education
feel that it is very to extremely important to have
an EXPERIENCED financial educator providing
financial education
86%
80%feel it is very to extremely
important to have an
ACCREDITED financial
educator providing the
education
Preferred times to participate in a financial
education program are:
right after
work
Infographic 2
Financial Literacy
for Employees
BOOKLET
See Money DifferentlyTM
Financial Literacy for Employees
Companies top concerns regarding employees and their benefits:
When do companies provide
financial education?
of companies feel the
education provided is useful59%
PRODUCTIVITY
ENGAGEMENT
MARKETPLACE COMPETITIVENESS
SALARIES
ORGANIZATIONAL COMMITMENT
TURNOVER
BENEFITS
DRUG BENEFIT COSTS
MENTAL WELLNESS
ABSENTEEISM
PRESENTEEISM
HARASSMENT
WORKPLACE VIOLENCE
during work hours
on employee’s
time
lunch
breaks
weekends
right after work
69%
50%
of COMPANIES say they offer
financial education
of EMPLOYEES say their company
offers financial education
vs
Who provides the financial education?
57%
company HR
38%
independent
3rd party provider
28%
benefit provider
27%
employee assistance
provider
72%of companies believe employee financial education will benefit them
42%
online self-study one-on-one coaching
39%
live webinar
59%
live seminar
How companies are providing financial education:
32%
Companies want education from a third-party educator to be:
82%
88%Unbiased
87%Experienced
Accredited
Money
DifferentlyTM
See
and build a better financial future
Workplace Financial Education
The benefits and rewards of a
financially literate workforce
Part 2
WHITE PAPER
Financial Literacy for Employees
Understanding what makes an effective
financial well-being program
Part 1
WHITE PAPER
Increase Profitability Through Financial Literacy
Restore productivity and regain
organizational commitment through
employee financial well-being
WHITE PAPER
Employee Financial Well-Being
to successfully
implementing an employee
financial well-being program
Part 3
GUIDE
STEPS
10
13