Corporate Wellness, Employee Financial Wellness
On Thursday the 20th of February the Minister for Finance, Paschal Donohoe launched Ireland’s first National Financial Literacy Strategy which states, ‘The mission of the Strategy is to improve the level of financial literacy in Ireland’.
The Organisation for Economic Co-operation and Development (OECD) defines financial literacy as: ‘a combination of financial awareness, knowledge, skills attitudes and behaviours necessary to make sound financial decisions and ultimately achieve individual financial well-being’.
Why is financial literacy important?
In 2023, the OECD carried out a survey among 100 Irish adults and found that four out of ten adults still struggle with managing their finances effectively.
Being financially literate means having the knowledge, skills, and confidence to make informed and effective decisions around money. It involves understanding key financial concepts and being able to manage personal finances responsibly. The Strategy as published states that ‘financial literacy is important as it plays an essential role in consumer protection and works alongside many other protections in place to help consumers’:
- Make the most of their money’
- Make informed financial decisions
- Help to improve their overall financial resilience and wellbeing
At the launch it was emphasised that ‘In today’s financial marketplace, possessing adequate levels of financial literacy is not a luxury, but a fundamental life-long skill.’
The role of education in financial literacy
Education is a huge part of the Financial National Literacy Strategy. Teaching people how to manage their money effectively can create lifelong habits that lead to greater financial security. As part of the strategy there will be workshops rolled out across primary and post primary schools as well as workplaces and communities to ensure that financial literacy becomes an accessible and ongoing process for people at all life stages.
The ultimate mission of the National Financial Literacy Strategy is to:
Improve the level of financial literacy in Ireland through a vibrant financial literacy ecosystem – increasing cooperation, coordination, and cohesion – and thereby support greater financial wellbeing and resilience.
As an award-winning provider of education programmes in public and private sector organisations across Ireland and a stakeholder in the national financial literacy strategy we welcome it’s launch. We know our employee financial wellbeing programmes help promote financial literacy in the workplace and help HR and Financial well-being leaders across Ireland support greater employee financial wellbeing and resilience.
If you would like to hear more about how we are supporting organisations like yours through our tailored financial wellbeing programmes, then feel free to have a chat with us.
If you would like more details about the strategy, then you can find it here
Employee Financial Wellness
As the calendar turns to a new year, it’s not just individuals setting fresh goals—organisations too have an opportunity to embrace impactful changes. One of the most significant ways you, as a HR or Wellbeing Leader can support your team this year is by making financial education a key pillar of your workplace wellbeing strategy.
According to our employee financial wellness report a little over four in five find money matters stressful and 86% report that the rising cost of living adds to their stress. This stress doesn’t just impact employees’ personal lives; it follows them into the workplace, affecting productivity, attendance, and overall well-being.
The start of a new year is a key time for many employees as they are more open to planning for the year ahead and setting fresh new goals. However, many people fail to stick to their goals especially financial. Did you know that two fifths (41%) of people have previously made financial resolutions and 7% did not manage to stick to them for more than a week, according to Hargreaves Lansdown.
One in six (16%) have never stuck to their financial resolution for longer than a month, and four fifths (78%) have not managed to last longer than a year, the Opinium survey of 2,000 people in September found.
How Employee Financial Wellness Can Help
As one of Irelands leading financial well-being specialists, we use World Health Organisation approved health promotion methods to provide tailored financial education programmes that teach employees to connect their income and savings to the lives they want to live.
By combining education with access to one-to-one guidance, employees are better equipped to set realistic financial goals and create actionable plans to achieve them, significantly improving their chances of success.
We use a simple three pillar approach to ensure that our programmes are seamless, effective and engaging for both the employer and employee.
Our three-pillar approach:
Understand
We start with our Attitudes & Trends Survey which helps us, and you understand the existing financial literacy levels and attitudes of your workforce before we design a bespoke programme to the needs of your organisation.
Educate
We believe in a “No Surprises” approach to empowering employees to understand their present financial situation and target future financial events to ensure that each employee fully understands the various elements that make up their financial worlds.
Communicate
Finances are often considered boring, intimidating & uninspiring. Our communications are designed to be fun, engaging, and interactive to ensure a high level of impact and engagement.
If you are a HR or Wellbeing leader looking to make a difference in your employee’s financial health this New Year, investing in a financial education programme is a fantastic first step. Contact us today to learn how our three-pillar approach can transform your workplace wellbeing strategy and drive meaningful results.
Employee Financial Wellness, employee wellbeing, Money Matters, Money Wise
Financial scams are on the rise and are more common in recent years than ever before. Scammers are now using more sophisticated methods to trick individuals and rob their hard-earned money and personal data. There are several types of scams circulating in Ireland today. According to the Central Bank of Ireland (2024), the most common type of scams are:
1. Investment Scams: These scams can occur when you are offered an “Investment Opportunity” promising a high interest return rate from your money that involves little risk.
2. Loan Scams: Loan scams are a type of “advance fee fraud” where scammers promise you a loan but require you to pay an upfront fee or administrative charge before receiving the funds.
3. Phishing Scams: Phishing is when scammers use emails, text messages or phone calls to trick you into giving them your personal information.
How to protect yourself from a fraudulent:
If you receive an unsolicited email, text message, phone call- or pop-up box online then we recommend taking the SAFE test first to protect yourself from these fraudsters (Central Bank of Ireland, 2024).
The SAFE test includes the following:
- S- STOP: stop think and ask yourself could this be a scam- Who? What? Why?
- A-Assess: Evaluate the information provided carefully and verify that the company is legitimate.
- F-Fact Check: It’s important to fact-check the offer and ensure it is from a trusted source.
- E-Expose and Report: Report the fraudster to the Central Bank or An Garda Síochána.
If you’d like more information about scams, please visit Here
Check out our other articles
Employee Financial Wellness
As the world comes together to celebrate World Mental Health Day with the theme for 2024 being ‘It is Time to Prioritise Mental Health in the Workplace’ We wanted to take the opportunity to shed light on the vital link between financial well-being and mental health. Through our work with organisations and their employees throughout Ireland we understand that financial stress can significantly impact a person’s mental health, creating a domino effect into every aspect of life, including home life and work life.
‘It is Time to Prioritise Mental Health in the Workplace‘
Financial stress is increasingly common in Ireland today, with many employees concerned about their financial security and the strain of the cost-of-living crisis.
As part of our workplace programmes, we conduct surveys with the workforce. These surveys not only provide us with insights into key areas that employees are struggling with, but they give us a true insight into the connection between financial stress and how it can have a profound impact on mental health. Some results from our last employee survey show some stark findings:
- 81% of employees find money matters stressful.
- 86% of employees find the cost of living stressful, rising to 90% of female employees in Ireland.
The three things most likely to trigger financial worries are:
- Not having enough savings (53%).
- Inability to pay for a sudden bill (42%).
- Not being able to afford luxuries (i.e., holidays) (34%).
These results paint a picture of just how many employees are struggling with their finances and how these concerns can manifest themselves in various mental health issues at home and in the workplace.
How can we help with financial stress?
We help with financial stress by providing employees in your organisation with financial education through our tailored financial well-being programmes. We use World Health Organisation approved health promotion methods to help employees improve their financial health by teaching them how to connect their income and savings to the lives they want to live. We believe in prevention rather than cure.
We use a three pillared approach to improving the financial health of employees in the workplace:
Understand
We want to understand the attitudes, opinions, trends, and existing financial literacy levels of your workforce before we design a programme bespoke to the needs of your organisation.
Educate
We believe in a “no surprises” approach to empowering employees to target future financial events to ensure that each employee fully understands the various elements that make up their financial worlds.
Communicate
Our communications are designed to be fun, engaging, and interactive to ensure a high level of engagement.
By addressing financial stress through our tailored programmes, we aim to not only improve employee’s financial health but also significantly enhance their mental wellbeing, promoting a healthier mindset.
If you are a HR or Well-being leader looking to help your employees, feel free to contact us today.
Employee Financial Wellness, employee wellbeing
Taxation & Workers
- The USC will be cut from 4% to 3% on incomes of €25,000 to €70,000, the second consecutive reduction to the USC rate
- The national minimum wage will increase by 80 cent to €13.50 per hour from 1 January 2025
- Entry threshold to 3% rate increased by €1,622 to €27,382
- The main tax credits – the Personal, Employee and Earned Income Credits – will increase by €125
- The Standard Rate Cut Off Point will increase by €2,000 to €44,000, with proportionate increases for married couples and civil partners
- Inheritance tax will increase for all thresholds – Group A up from €335,000 to €400,000, Group B up to €40,000 and Group C up to €20,000
- Exemption from Income Tax, Capital Gains Tax and Capital Acquisions Tax on payments made to women impacted by CervicalCheck failures
- Free schoolbooks initiative extended to transition and senior cycle pupils
- Funding to continue for the school transport fee reduction and State exam fee waiver
- Continued reduction of student contribution fee by €1,000
- Once-off reduction of 33% in contribution fee for apprentices in higher education
- Post-graduate tuition fee contribution increase of €1,000 for student grant recipients
- Double payments of child benefit in November and December
- Double payment of the foster care allowance
- €400 lump sum payment for working family payment recipients
- €100 lump sum payment per child to recipients of qualified child increase payments
- National childcare scheme funding to rise by 44%, resulting in reduction of fulltime childcare costs by €1,100
- New ‘baby boost’ one-off payment of €420 for each newborn child from 1 January
- Free public transport to be extended to children aged five to eight
- 495 new beds to health services across hospital and community services
- Increased access to IVF and Hormone Replacement Therapy to be free of charge
- Increase in numbers working in health service
- 1,600 additional Special Needs Assistants (SNAs) & 768 extra Special Education Teachers
- 1,000 additional Gardaí & 150 extra Gardaí civilian staff
- 350 additional Irish Prison Service personnel
- 400 additional International Protection Office personnel
- Net increase of 400 Defence Forces members in 2025
- The rent tax credit offered to tenants will rise from €750 to €1,000, and to €2,000 for a jointly assessed couple
- An additional €1.25bn will be made available to the Land Development Agency, bringing the total amount of funding for the LDA to €6.25bn
- Help to Buy scheme will be extended until the end of 2029
- Properties worth over €1.5m to pay 6% stamp duty
- Existing 1% stamp duty to apply to values up to €1m and 2% above €1m
- Relief for pre-letting expenses for landlords extended for three years until the end of 2027 to help vacant property owners bring accommodation into the rental system
- Vacant homes tax increased from five to seven times the property’s existing base Local Property Tax rate
- Energy credit of €250 for all households to be paid in two equal payments, one before the end of 2024 and one after
- Proposal for the 9% reduced VAT rate for gas and electricity to be extended for another six months to 30 April 2025
- Further €300 lump sum payment to fuel allowance recipients in November
- Additional €200 for recipients of the living alone allowance
Increase in VAT Registration thresholds for businesses from:
- €40,000 to €42,500 for service only businesses
- €80,000 to €85,000 for goods and services providers
Excise Duty
- Cigarettes duty increased by €1.00 per pack of 20, pro rata increases will be applied for all other tobacco products
- E-cigarettes: introduction of 50c tax per 50ml of e-liquid to commence mid-2025
- Extension of Young Adult and Student Card to cover adults aged 19-25 to the end of 2025
- Free public transport will be extended to include children aged 5-8 for the first time
- €7.50 increase on current rate of carbon tax on petrol and diesel from €56 to €63.50 per tonne of carbon dioxide emmitted from 9 October
- Including VAT, carbon tax increase represents a rise of around 2.1 cent per litre of petrol and 2.5 cent to a litre of diesel
- Increase on carbon tax levied on other fuels, including home heating, to be brought in from May 2025
- Amendment for battery electronic commercial vehicles so people can qualify for €200 vehicle registration tax rate
- €12 weekly increase for Social Welfare Payments, including pensions
- A €300 lump sum payment for Fuel Allowance recipients will be paid in November
- Additional €200 will be paid for those in receipt of Living Alone Allowance
- €400 once-off payment for recipients of Carer’s Support Grant, Disability Allowance, Blind Welfare Allowance, Invalidity Pension and Domiciliary Care Allowance
- €400 once-off payment for recipients of Working Family Payment
- Carer’s Support Grant will increase by €150, to €2,000
€3 billion from the sale of AIB shares will be allocated as follows:
- €1 billion to Irish Water for non-domestic capital investment
- €1.25 billion to the Land Development Agency for the development of social and affordable housing
- €750 million for the development of the Electricity Grid Network
Sources include: rte.ie
Please note: There may be further changes to the above information following the Finance Bill. Every effort has been made to ensure that the information provided here is accurate and up to date (as of 1st October 2024). The information provided is of a general nature and may not address the specific circumstances of a particular individual. Employee Financial Wellness does not accept any liability arising from any errors or omissions.
Employee Financial Wellness, HR
International Women’s Day
Each year, International Women’s Day adopts a specific theme to focus on various issues affecting women globally. It is a day not only to celebrate the achievements of women but also to highlight the work that still needs to be done to ensure a more just and equal world for all gender identities.
One of the primary concerns faced by women in today’s world is the increasing financial challenges. Women often encounter unique financial burdens, such as health expenses related to women’s health issues like menopause and fertility treatments like IVF. If we look at the financial burden associated with menopause, women often must bear the costs of treatments, medications, and therapies to manage symptoms such as hot flashes, mood swings, and osteoporosis.
Increasing financial challenges women are facing
Moreover, the increasing number of women struggling with the expenses of in vitro fertilization (IVF) and fertility treatments highlights another significant challenge. These treatments can be financially draining and emotionally taxing, making it difficult for women to access the support they need to start or expand their families.
Additionally, the excessive costs of childcare can be a major obstacle for many women, impacting their ability to pursue career opportunities or attend educational programs.
Furthermore, the pressure to balance work and family responsibilities can lead to women reducing their working hours to care for their families, which can have a negative impact on their career advancement and financial stability. These expenses, coupled with the rising cost of living, underscore the importance of financial education tailored to women’s needs.
Employers play a crucial role in supporting women’s financial well-being by providing resources and benefits that address these challenges. By offering initiatives like financial education programmes, employers can empower women to navigate their financial responsibilities more effectively. Recognising the specific financial hurdles that women face and taking proactive steps to provide support can lead to a more inclusive and equitable workplace environment for all employees.
In conclusion, on International Women’s Day and beyond, it is essential to advocate for greater awareness of the financial obstacles that women encounter and the need for tailored support systems. By promoting financial education, offering practical assistance, and fostering a supportive workplace culture, employers can help women achieve greater financial security and overall well-being. Empowering women financially not only benefits individuals but also contributes to a more diverse, inclusive, and thriving society.
Let’s all support and uplift women in our communities and beyond.
As a HR or people and culture leader in the workplace you can help your workforce by helping them to understand how to plan for financial events throughout their lives and be ready for them when they happen.
We’d be delighted to chat to you about our tailored financial education programmes and how they can help, simple contact us here
