Talk Money Week was introduced to address the discomfort that people often experience when discussing money and bring these discussions more into the main stream. Launched by the Money & Pensions Service (‘MaPS’) in 2020, Talk Money Week is a way to get people talking about their finances and reduce the stigma around doing so.
In 2023, Talk Money Week takes place from 6th to 10th November. Not just a workplace initiative, Talk Money Week is adopted across many organisations, clubs and locations to increase visibility of this important topic.
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.
The theme for Talk Money Week 2023
The theme for Talk Money Week 2023 is ‘Do One Thing.’ This theme encourages stakeholders, partners, organisation and individuals across the UK to take a single action that can enhance financial wellbeing. This action can be as simple as reviewing pension details and using an affordability calculator to see if more can be invested or even discussing pocket money with a child. The primary goal is to inspire others to follow suit and initiate conversations about money, no matter how modest the step may seem.
Employers could consider some ideas for ‘Do One Thing’ that they could run as a theme for their activities:
· Encourage employees to learn about pensions and the importance of investing in their future
· Learn how starting pensions early in a working life has a huge impact
· Get employees to use a pension calculator
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.
Resources available to employers
Employers have access to valuable resources to promote Talk Money Week effectively:
Participation pack: The Talk Money Week 2023 participation pack offers tailored activities and resources to engage employees. It offers structured activities suitable for various sectors and audiences.
Communication toolkit: Employers can use the Talk Money Week communication toolkit to spread the word about Talk Money Week within their organisations. This toolkit assists in effectively communicating the importance of financial discussions and activities that will take place during the week.
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 been built to improve the payroll process for employers and improve the financial resilience of employees. By improving the payroll process and giving clearer information, tools and support, employees can make more informed decisions on how best to maximise their income.
Functionality available in the PayCaptain app includes automated savings and the ability to view and manage pensions easily.
In line with ‘Do One Thing,’ the theme of Talk Money Week, PayCaptain is encouraging employees to focus on making sure they have an instant access savings pot they can use if a financial emergency strikes. Having a savings buffer is vital and is key to increasing their financial resilience.
Q4 2023, sees the launch of SmartPay by PayCaptain – a groundbreaking set of features designed to boost employee’s financial resilience. SmartPay uses clever personalisation drawn from the integration with payroll to serve relevant suggestions at key moments for the employee. In a joint research project between PayCaptain and the Behavioural Insights Team (‘BIT’), it was identified that personalisation directly influences behaviour and is key in overcoming some of the behavioural biases that lead employees to inertia rather than action. The findings concluded that personalised savings suggestions that are more relevant to the employee are far more likely to be accepted.
Fully integrated into the PayCaptain payroll solution, SmartPay uses employee payroll data to prompt users into healthy and sustainable financial behaviours. Once activated, SmartPay asks a series of personalisation questions designed in conjunction with The Money and Pensions Service to understand the employee’s savings objectives and financial wellbeing.
With learnings from the personalisation questions and employee payroll data, SmartPay can adapt recommendations specifically to the user’s circumstances and can make savings suggestions at highly meaningful points, leading to an increased likelihood that the employee will benefit from accepting the suggestion. This deep personalisation also reduces the risk that users will be prompted into an unsustainable behaviour, like saving more than they can afford.
In summary, Talk Money Week serves as a crucial platform for promoting financial wellness and open conversations about money. With the 2023 theme "Do One Thing," individuals, organisations and employers can take simple and impactful steps to improve financial wellbeing.
Employers, in particular, have a significant role play in sharing information about Talk Money Week, providing resources and creating a workplace environment that supports financial discussions. By addressing the impacts of poor financial management and encouraging proactive engagement, Talk Money Week contributes to a financially healthier and more productive society.
For more information, visit https://maps.org.uk/en/our-work/talk-money-week
PayCaptain Payroll Solutions Limited, www.paycaptain.com is a multi-award-winning Payroll/FinTech company that delivers a fully automated cloud outsourced payroll service. The solution contains many unique and innovative features for employees, helping them to take control of their pay and increase their financial wellbeing.
PayCaptain is a payroll solution that helps employers pay their workforce, regardless of income and personal circumstances. The solution incorporates functionality, however, that's specifically designed to positively impact financial resilience for people struggling with money, or vulnerable and low-income employees.
PayCaptainis the world’s first payroll company to be B-Corporation certified. To read more about B-Corporations, visit www.bcorporation.net
PayCaptain has been recognised and rewarded with two B Corp ‘Best for the World’ awards for being within the top 5% of highest scorers within both the Workers and Governance impact areas in the B Corporation B Impact Assessment. The company has also been included in ‘The Escape 100’ in both 2022 and 2023. The Escape100 is the list of the top 100 organisations to escape to, as awarded by EscapetheCity.Org. PayCaptain was awarded 7th place in 2023 from over 13,500 nominated businesses.
PayCaptain was awarded the Chartered Institute of Payroll Professionals’ Software Product of the Year Award in 2022, only two years after the solution was launched.