Talk Money Week is an initiative introduced by the Money & Pensions Service (‘MaPS’) in 2020 to get people talking about money and their finances.
Talk Money Week takes place in November each year. Particularly in these times of hardship when costs are rising and more households than ever are struggling financially, the initiative wants to normalise talking about money so people are more likely to open up if they’re feeling financially stressed and are then more likely to get the support they need.
The week is an opportunity for everyone to get involved with events and activities across the UK which help people have more open conversations about their money - what will you do to support this important initiative? Talk Money Week is adopted across many organisations, clubs and locations to increase visibility of this important topic, not just limited to workplaces.
Why is it important to talk about money?
People in the UK don’t talk about their money openly, especially the challenges they're facing. Covid-19 affected the finances of thousands of households and families across the UK and the current cost of living crisis is putting households under even more financial pressure. Inflation is expected to hit 15% by the end of 2022 and a recession expected to run into 2023. Despite all this, 90% of adults in the UK still don’t find it easy to talk about money.
"Talking about money is still considered taboo."
Research shows that people who talk about money:
- make better and less risky financial decisions
- have stronger personal relationships
- help their children form good lifetime money habits
- suffer less stress and anxiety about money
It’s important for both emotional and financial well-being, that people open up to friends, family, employers or co-workers when they’re facing financial pressure. Talk Money Week aims to try and break down the stigma associated with talking about money and have people build money conversations into their everyday lives to help build financial confidence and resilience for the future.
With the cost-of-living crisis continuing to bite and over one million households in the UK expected to run out of savings by the end of 2023, there's a critical need to provide support for people in financial distress. Talk Money Week aims to get people to open up about their finances so they can get more support or to learn new information so they can make more-informed choices. The core objectives of Talk Money Week include:
Encouraging informed decision-making: The initiative aims to help people make better, less risky financial decisions by facilitating discussions on various financial topics like avoiding short term expensive credit and the benefits of budgeting.
Strengthening personal relationships: By promoting conversations about money within families and communities, Talk Money Week contributes to stronger personal relationships, more open dialogue and the giving and receiving of support.
Fostering healthy money habits in children: Open discussions about money help build good money habits to children, setting them on a path to a more financial resilient later life.
Improving mental health: Money-related stress and anxiety are prevalent issues related to poor finances and can have a significant impact on an individual’s mental health. Talk Money Week aims to help alleviate these feelings by providing a safe space for financial conversations which can lead to additional support, training and guidance for the individual.
Building financial confidence: Engaging in financial discussions during Talk Money Week helps individuals to understand the importance of building resilience for the future. By having savings or by investing in a pension, individuals can build their financial confidence and resilience to face future challenges.
Talking about money at work
Employers can get involved with Talk Money Week by using the participation pack from MaPS. The pack promotes visibility of the initiative and helps kickstart conversations about money. By talking more openly about money in the workplace, it'll help to break down the taboo and help employees gain confidence to seek support about their finances if they need it.
By talking about money in the workplace, employers can help employees to:
- Improve money management. This can help reduce financial stress and worry, leading to better physical and mental health
- Improve financial decision-making. People can make more informed judgements and build more resilience for the future
- Achieve financial goals. By talking more openly about money, people can improve their financial literacy, set and achieve their goals
Impacts of poor financial management on individuals/employees and workplace effects
Poor financial management can have a significant effect on both individuals and employees. Financial stress stemming from poor money management can result in various workplace issues:
Decreased job satisfaction: Employees grappling with financial problems often experience decreased job satisfaction impacting their overall work performance and higher staff turnover.
Reduced productivity: Financial stress can lead to distractions and reduced productivity in the workplace which has a direct impact on the employer, costs and the employee’s colleagues.
Increased absenteeism: In a study carried out by CIPHR in 2021, it was found that financial worries are the joint main cause of stress in the UK. Whilst stress itself is not an illness, there are direct connections between stress and mental health, including anxiety, depression and post-traumatic stress disorder. Mental health is the biggest cause of absenteeism from work in the UK.
Health Challenges: Employees facing financial difficulties are at a higher risk of mental health challenges which can adversely affect their physical health, overall wellbeing and productivity.
Addressing these challenges during Talk Money Week can help alleviate financial stress among employees, improve workplace morale and contribute to a more productive and healthy work environment.
Why employers should share information about Talk Money Week
Employers play a crucial role in promoting Talk Money Week to their employees. Sharing information about this initiative not only demonstrates a commitment to employees' wellbeing, but also offers several benefits:
Enhanced financial literacy: Encouraging participation in Talk Money Week activities may help employees become more financially knowledgeable and literate, enabling them to make informed financial decisions and build more resilience for the future. Engaging them in conversation about money may get employees to open up about financial worries, lack of understanding or lack of ability to budget effectively.
Improved employee wellbeing: Employers can improve their workers' overall wellbeing by addressing financial stress and offering services for financial health.
Increased productivity and loyalty: Financially confident and less stressed employees are likely to be more focused and productive at work.
Fostering a supportive work culture: Promoting Talk Money Week fosters a culture of openness and support within the workplace, encouraging employees to seek help and discuss financial concerns.
Activities for employers to engage employees
Employers can launch a variety of activities to engage employees in financial discussions during Talk Money Week:
Financial literacy workshops: Hosting workshops on financial literacy can help employees improve their money management skills.
Financial wellness webinars: Offering webinars on financial wellness topics provides employees with valuable insights into managing their finances.
One-to-one financial counselling: Providing access to financial counselling services allows employees to seek personalised guidance.
Budgeting challenges: Organising budgeting challenges or games can make financial discussions interactive and engaging.
Peer-to-peer discussions: Encouraging employees to engage in peer-to-peer discussions about money can foster a supportive environment.
How does PayCaptain help?
PayCaptain is a payroll solution that's designed to pay employees correctly on time, every time. But the team at PayCaptain go much further, as they focus on building a solution that supports those who have lower financial capability. Challenges with financial capability are universal - it’s a common misconception that only people on lower incomes are affected.
There’s a host of innovative functionality built in to the PayCaptain mobile payroll app to help employees understand their pay and deductions better, improving their financial literacy and resilience for the future. There’s also specific functionality to give employees greater control of their pay, as well as how and when they receive it.
PayCaptain also partners with Plain Numbers – an initiative to improve the way that numbers are communicated. Using a Plain Numbers Approach can double the number of people who understand communications such as their payslips, giving them a better chance of making informed choices and improving their financial well-being.
Functionality in the PayCaptain app includes:
- Interactive payslips – these are graphical payslips which break down payments and deductions for employees. Employees can click on Help icons for more information on how their deductions have been calculated so they know exactly how their pay has been worked out. Help icons explain how their tax and national insurance has been calculated, as well as things like student loan and pension calculations directly on the payslip
- On demand pay – also known as salary advances - where companies can give their employees access to a portion of their salary from accrued earnings, even if it’s outside the regular pay period at no cost to the employee
- Payment splitting – where employees can make payments direct from their net pay to family members, landlords, loans, credit cards, etc – eliminating the risk of missing an important payment
- Savings – employees can pre-plan the amount to save and is automatically transferred from net pay using payroll savings. PayCaptain also has functionality called SmartPay which uses behavioural insights combined with ground-breaking technology to drive better decision-making through personalised saving suggestions. All PayCaptain's saving options helps builds some resilience for times of financial hardship
- Money planning tool – where employees can create a personal budget
- Personalised financial guidance – trusted, impartial and confidential financial guidance from Money Helper can be accessed directly through the PayCaptain app
- PayCaptain is AI-powered payroll and has an AI Chatbot to deliver exceptional employee payroll support. The chatbot can answer the most frequently asked questions raised by employees about their pay. If the employee needs to speak to an expert, they can be transferred to a member of the PayCaptain team for more guidance and support. When the employee calls PayCaptain, their last payslip automatically comes up on screen for the advisor so they can handle the enquiry quickly and efficiently
- Pensions dashboard – to track contributions and build better financial resilience for later life
In summary, by participating in Talk Money Week each November, employers can break down the taboo of talking about money – something which 90% of the adult population currently feel unable to do. By talking about money more openly, employers can help their teams understand their finances better, seek support for those who may be struggling as well as build better financial resilience for the future.
To learn more about how PayCaptain can help your business and improve the financial well-being of your employees, please contact us for an informal, no obligation chat. We’ll be happy to demo PayCaptain for you.
