Three ways to encourage your employees on how to handle their money amid inflation
The current hyperinflation worldwide impacts numerous employees from various industries. As prices of fuel, transport, and commodities rise excessively, cash or any savings deposited in banks decreases value and possesses lesser buying power.
As employers, you can do something to help your people fully understand the current economic situation and improve their financial situation. SAVii rounded up useful information to help you take care of your employees amid high inflation.
- Invite financial experts to teach financial assessmentFor your employees to save more, they must be able to understand their current financial standpoint. A personal financial assessment will provide your people with an overview of where their money is going, which aspects of their living expenses are overbudget, and teach them how to reallocate excess budget in more meaningful financial buckets. You may invite financial experts to talk about personal financial assessment to provide a guided process which will empower them to manage their money well amid the hyperinflation crisis.
- Promote and normalize lifestyle downsizingAfter you let your employees reflect on where their money goes and if these are spent properly, encourage them to take a look at their lifestyle and assess areas where they can downsize. This adjustment isn’t meant to remove enjoyment. However, lifestyle assessments and downsizing will protect them from possible economic crashes if the inflation rate continues to rise uncontrollably. Provide helpful information on zero waste lifestyle, encourage homemade or potluck meals instead of food delivery services, and promote walking to nearby destinations or carpooling to advocate for a simpler life among your employees.
- Teach employees how to invest their moneyIf your employees already have 3-6 months’ worth of contingency funds that they can use during emergencies and still have an excess amount of money in the bank, urge them to learn how to invest their money in various investment channels. As the adage says: it is best not to put your eggs in one basket. Teaching your team about the many benefits of a diverse investment portfolio will help them be financially stable in whatever scenario. You may once again invite investment experts who will proper guidance and strategies for smart investments.
Seeing your employees prosper amid hyperinflation is one of SAVii’s most important goals. As your employees’ financial buddy, we are always here to provide value-adding financial services and materials that empower you to be atop your financial game. 💯