by Let’s face it. The closest most have come to taking a course about money was probably a Home Economics class in primary school.
This matters because one day you’re going to want to transition ownership of your business to an insider (family or key manager) or an outsider (third party). Either way your financial health, and your employees financial health ought to be a key component of your succession plan.
Just as physical disease needs to be approached from two fronts: protecting against infection and reducing the development of the disease in infected people,financial stress (disease) also needs to be approached from two fronts: financial education designed to help people learn how to make sound financial decisions, and financial life planning designed to help people who are already financially sick implement a cure. Succession planning can be the tipping point where acute awareness of financial stress issues erupts.
After all, it’s not much of a succession plan if the plan doesn’t get implemented because your key manager(s) and employees are financially troubled.
Business owners are acutely aware that financially stressed out workers are not good for business. Money worries can bring a myriad of problems to the work place which may include; absenteeism, lack of productivity, theft, higher employee turnover, and even higher health care costs.
Financial stress, and lack of financial literacy is also getting the attention of our politicians in Washington. The Dodd- Frank, final financial reform bill, championed by Senator Elizabeth Warren, includes an Office of Financial Education, an office within the CFBP, Consumer Financial Protection Bureau, focused on enhancing financial literacy.
Their mandate is as follows:
OFFICE OF FINANCIAL EDUCATION.- (1) ESTABLISHMENT.-The Director shall establish an Office of Financial Education, which shall be responsible for developing and implementing initiatives intended to educate and empower consumers to make better informed financial decisions.
“Better informed financial decisions” is the attribute of a financially healthy individual. (refer to previous wellness link) http://bhwealth.com/financial-wellness-a-sound-investment/
To help , we have partnered with Personal Finance Employee Education Fund, which owns the Personal Financial Wellness Scale™ (PFW Scale™) an eight-question, self-report measure of perceived financial distress and financial well-being.
This tool has been scientifically determined to be a valid and reliable measure of personal financial wellness and was finalized in 2006 through the research collaboration of Dr. E. Thomas Garman, Mr. Benoit Sorhaindo and a national team of scholars.The instrument measures how people are doing along a continuum extending from negative to positive feelings about and reactions to their financial situations.
An example of some of the questions are as follows:
- What do you feel is the level of your financial stress today?
- How confident are you that you could find the money to pay for a financial emergency that costs about $1000?
- How frequently do you find yourself just getting by financially and living paycheck to paycheck?
As part of our Sound Financial Decisions™ employee wellness program we offer a turn-key solution to the music instrument industry; we will administer and interpret the wellness survey while implementing a financial wellness program tailored for the business owner. As we begin to collect data, employers will gain insight on how the financial health of their employees compare with other employees of other similar music retail companies.
If the diagnosis is financial stress, perhaps a financial wellness program is the right prescription to bring harmony to your music retail or music manufacturing business.