GFLEC-Global Financial Literacy Excellence Center

Research-based solutions for workplace financial education.

More than two decades of financial literacy research have shown that low financial literacy causes people to make less savvy financial decisions. More recent research demonstrates that a lack of financial knowledge has another impact: It triggers high levels of financial anxiety that can negatively affect the workplace.

Data from our annual TIAA Institute-GFLEC Personal Finance Index (P-Fin Index) reveals that people who lack financial literacy spend more hours worrying about financial issues than those who are financially literate—some of that distress spills over into the workplace. On average, people spend seven hours per week thinking about and dealing with financial issues. Three of those hours occur at work.

Among people with low financial literacy, however, that worry time can reach 12 hours per week, seven of which happen at work. In other words, people with low financial knowledge spend about an entire workday per week worrying about their money. This finding underscores the hidden cost to employers of financial illiteracy.

Our research also points to a solution: financial education in the workplace. Since financial decisions affect people’s financial well-being across the life cycle, the workplace is a natural setting to provide financial education to a large group of adults. Financial education can improve workers’ financial wellness and boost workplace engagement and productivity. However, the financial education programs must be well-designed and match employees’
needs.

Since its founding at the George Washington University School of Business a decade ago, GFLEC has been at the forefront of rigorous financial education research.

We assess and evaluate the design and impact of financial
education initiatives. We also partner with financial education providers and employers interested in offering financial wellness programs.

TO LEARN IF THIS SERVICE IS A FIT FOR YOUR EMPLOYEES NEEDS, CONTACT:
Email: gflec@gwu.edu
Phone: 202.913.5372