The spread of the global COVID-19 pandemic triggered immense economic consequences across the United States. A spike in layoffs has been prompted by attempts to control the growing coronavirus, leading to the loss of jobs in a number of sectors, namely cafes, hotels and tourist sites, airports, resorts, automobiles and manufacturers. After the economic meltdown of 2008, U.S. stocks have seen their largest weekly decrease. The Department of Labor reported that the record was broken for the 3.3 million unemployed complaints brought in a single week in the March 2020 (NPR Cookie Consent and Choices, 2020). Abruptly, there were more unemployed Americans than ever before; even in the wake of catastrophic events including storms, earthquakes and flooding during the Great Recession.
Some efforts have been made to mitigate the ongoing crisis, most notably the $2 trillion economic stimulus bill (H.R.748 - 116th Congress (2019-2020): CARES Act, 2020). Moreover, along with other government departments, the Federal Reserve has focused on the financial sector to address the financial concerns of the population impacted by COVID-19. Some of the country's biggest investors have reacted with steps to help their consumers manage––namely Citibank, Wells Fargo and American Express (Smith, 2020).
Aside from institutionalized support, another way to support American workers is to strengthen their financial literacy now and for the future. It may seem ridiculous or unfair to consider this as a factor during the present situation, however, it is an appropriate moment to reflect on the value of financial education for employees.
Over 30% of the hundreds of Charles Schwab evaluation respondents said they may not have a structured financial plan since they think it's too hard or because they may not have enough motivation to concentrate on one. Further, more than 20 % of people surveyed by the National Financial Educators Council said they had no one to turn to for trustworthy financial advice. To strengthen the financial literacy of workers, CHROs should establish collaborations with CFOs. Companies whose HR and finance structures work together to establish the increasing demand for expertise in monetary and enforcement will realize critical edge in partnership on this investment.
Loyalty to a corporation is dependent on the economic position of its employees and how that is taken into account by the organization. In its 2019 Employee Financial Wellness Survey, global consulting firm PwC demonstrated this, particularly with regard to the younger population. 46% of Millennials and 44% of Generation-X participants especially in comparison to Thirty percent of Boomer Generation surveyed in the questionnaire said their employer's loyalty was affected by how much the business cared for their economic well-being. Most of all 3 groups (81% of Millennials, 75% of Generation X and 52% of Baby Boomers) said they would be more attracted to another business that cared about their monetary well-being (PricewaterhouseCoopers, 2020). More than half of the workers surveyed by Bank of America Merrill Lynch for a 2017 study said they would like for the workforce to supply them with financial literacy education to improve their own financial well-being.
It is critical that we start teaching high school and college students the skills necessary to manage their own money. Regularly opening money-focused interactions with students can not only make them build their expenditures under control, but it can also help them meet their financial needs that will arise constructively. Engaging students in this discussion will improve their financial skills and empower our youth to be financially independent.