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Funds and Employers Lead Australian Financial Literacy Efforts Because of Bottom-Line Argument, October 19, 2004. Garman

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USA Professor Tom Garman will be speaking to the Association of Superannuation Funds of Australia during a speaking tour in 5 cities in November. He will report on Australian research that demonstrates that "millions of Australians desperately need help saving for retirement" and American research that "argues that offering employees sound financial education increases personal financial well-being and the bottom-line profits of the company."

Among the points Garman, Fellow and Professor Emeritus of Virginia Tech University, will make are:

"Attention Australian Employers: Every time someone in your work team brings his or her personal financial worries to the job, workplace productivity drops."

"Question: What do the following four employer-cost factors have in common? Work -time wasted. Absenteeism/presenteeism. Turnover. Poor job performance. Answer: Employee money problems."

"Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line."

"Quality financial programs are the right and moral thing for funds and employers to do as stewards of employee well-being."

"Your financial program should ensure that employees are in a better financial situation when they leave the company than when they join."

"Celebrate the financial literacy providers who are doing it the 'right way,' exhibit a commitment to results, and encourage employers to collect internal data demonstrating that positive ROI of their financial programs."

"Demand that the financial education provider be the employer's co-fiduciary and share the responsibility for helping to raise the financial well-being of employees."

"Good financial education 'nudges' people who are a bit out of control financially toward being in control so they can budget, charge a bit less, create a revolving savings fund, save for short-term goals, and make contributions to Super Fund."

"Employers in the U.S. can expect $450 in positive job outcomes from each employee who slightly increases his or her financial behaviors and financial well-being. The return comes from less absenteeism and less work time wasted dealing with financial concerns. That's AUS$600!"

"Research says as employee financial well-being rises these factors definitely change for the better for many employees: concerns and stress about money matters, personal finance/work conflict, health, work life, pay satisfaction, job performance rating, work hours spent dealing with personal financial concerns, presenteeism, and contributions to retirement savings."

"Employee financial worries are not a straw man-It's a real problem for employers."

"Question: Should the Australian financial literacy effort aim to help workers make good personal financial decisions on Choice of Funds and improve their personal financial well-being?"

Money Solutions is Professor Tom Garman's host in Australia. Money Solutions is a leading provider of money education and guidance programs since 1995. To take our research further and showcase our solutions, Money Solutions has invited Dr Garman Professor Emeritus at Virginia Tech University to Australia to speak with you with leaders. Over the last 20 years, Dr. Garman has pioneered research into the depth of financial illiteracy amongst adults and the tangible benefits of financial education programs to improve savings behaviour.

E. Thomas Garman is a renowned authors, advisor, and academic-he is a Fellow and professor emeritus at Virginia Tech University in the USA. His website is www.pfeef.org. Garman is author of over 30 books, and he is identified particularly with award-winning research linking the financial fortunes of corporations with the financial health of their employees. Tom's trip to Australia is hosted by Money Solutions, Australia's leading provider of financial information, education, guidance, and financial planning. Virginia Dowd is CEO of Money Solutions.

Money Solutions Pty. Limited; ABN 36 105 811 836; Tele: +61 2 9692 9533; Fax: +61 2 9086 6355; Web www.moneysolutions.com.au; Primary contacts Candi Mole, Executive-Marketing and Communications; Jeremy Pooley, Commercial Director and CFO; Virginia Dowd, Managing Director.

E. Thomas Garman, Advisor and Author, Fellow and Professor Emeritus, Virginia Tech University, 8044 Rural Retreat Court, Orlando, FL 32819 USA; Phone 407-363-9048; Web www.pfeef.org; tgarman@bellsouth.net.

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