The Need for Financial Literacy

This week I am off to Washington to attend FOSE 2006, the nation´s largest technology event serving the government marketplace. I will be giving a workshop on attainment of retirement literacy for all government employees. 

I don´t want to steal from my thunder in that delivery, so I will just mention a few points. 

Attaining financial literacy is a topic that should be a concern of all American employers and not just the government.  Workers today are becoming increasingly more responsible for savings and investment retirement assets.  (See my previous blog on the trend of employers switching to defined contribution plans.) Employees need to know the basics of economics - investing, interest rates, inflation and risk. They have to use this knowledge to plan for their retirement. 

Too many workers don´t even consider the concept of retirement until they are too late in the game. They don´t start saving early enough and the result is that they will not have enough to retire on and also enjoy the same standard of living they were accustomed to during their working career. 

Employers need to change this by helping to educate their workers on the need for financial literacy. Statistics prove that education works; employees will not necessarily get this education through their own channels. Therefore a push by all American employers will make a real difference. 

Let me know your thoughts and we can continue this topic at a further time.