Smart business owners know that a rising tide lifts all boats: When your employees are in a good place — particularly where their level of confidence is concerned — you feel more positive and the company is more likely to prosper. In other words, everyone wins. This is why small and midsize business owners are increasingly looking for ways to give a boost to everyone on their team — including themselves! But what, exactly, are the most impactful and effective ways to uplift everyone?
A good place to start is by filling the gaps — and The 2023 State of Women survey from HerMoney Media and Principal Financial Group has revealed some big gaps in how men and women think about the future: It turns out that male business owners feel much more confident than female business owners when it comes to assessing their level of skill with money management and investing… And those confidence gaps could be costing us. Here’s a look at some of the best ways you can help increase your own financial confidence — and your employees’ confidence at the same time.
What’s Really Going On With Our Financial Fears & The Confidence Divide
Oftentimes, women get labeled as not being confident, when in reality they might simply have a healthier sense of fear when it comes to their money, explains Trisha Qualy, certified financial planner and managing Partner at Affiliated Advisors in Minneapolis.
But where, exactly, is the line between a lack of confidence and “healthy” fear? To answer that, we have to filter out our valid concerns from some that may be completely unfounded.
“We all fall somewhere on a spectrum of fear and pride, and true confidence lies somewhere in the middle,” Qualy says.
Financial Confidence Doesn’t Have To Be Complicated
Many small business owners — women and men alike — may find themselves worried not only about their personal finances, but also that of their employees. Financial wellness programs — which can include budgeting advice, disability insurance, financial education, and debt remediation — can be an easy benefit to offer that can help boost financial confidence for everyone at your company, but unfortunately, that’s not always the perception.
All too often, small business owners don’t give these programs proper consideration because of our instinct that all things “benefits” are created equal.
“When many of us think about benefits, we immediately think of health insurance, navigating bills and many layers of complexity,” explains Kathleen Souhrada, vice president and head of Business Owner Solutions at Principal Financial Group®. “But we shouldn’t transfer that same sentiment over to financial wellness programs, which are incredibly easy to make available.”
Not only that, offering a financial wellness program can be a strategic business move that helps promote higher levels of employee satisfaction.
“We all want to feel taken care of; it feels good as an employee to know that your employer is looking out for you,” Souhrada says. “These programs foster an environment where employees can reduce stress, increase savings, and manage debt appropriately — that’s going to lead to a positive sentiment for the whole organization.”
One word of caution here: before putting together or signing up for a financial wellness program for your company, don’t make assumptions about what your people want. Ask them.
“As a small business owner, you want to make sure every investment you’re making in your team is a worthwhile investment,” Qualy says. “The worst thing you can do is to sign up for one of these programs and then find that your employees never use the resources.” So, start with a survey of your employees, and find out what their financial pain points and goals really are — for example, you may want to select different offerings you find out that the majority of your employees are struggling with student loans vs. looking to save for retirement or buy a house.
Trusted Professionals Can Help You See Things Clearly
“One of the biggest things I do with my clients is to recalibrate what confidence really means to them,” Qualy says. “Because even though you might be afraid of something, that doesn’t mean you can’t be confident. You’re just more aware of the dangers that might be out there, and being more aware allows you to better plan for different scenarios that might play out.”
In other words, when we want to grow our financial confidence, we first need to determine if the “what if” scenarios we’ve been stressing out over are actually worth our time. A trusted financial professional can help us see things more clearly, yet concerningly, 20% of business owners say not having a financial professional prevents them from taking the time to plan for the financial health of their business, according to Principal Financial Group’s 2024 Business Owner Insights.
“When you work with a financial professional, confidence goes up,” Souhrada says. “And your relationship with a financial professional deepens over time to the point that they will really understand you — and the financial needs of your company and its employees.”
Countless Free Resources Are At Your Disposal
These days, you’d be hard pressed to find a company (or an individual) whose budgets aren’t stretched thin. Thankfully, there are countless free sources that business owners can turn to for financial information, education and empowerment, including:
The Small Business Administration
SCORE, which provides free financial workshops
The Women’s Business Centers, which provides support for women-owned businesses. The Veteran Business Outreach Centers, for U.S. veterans
The Minority Business Development Agency for underrepresented people or people of color
HerMoney.com, which includes countless free how-to guides and The HerMoney Podcast
Principal.com, which features free resources on marketing your business, building your business, and even a free checklist that helps you assess exactly what your business needs.
“There is a broad array of financial education for anyone and it’s there for the taking, for anyone wanting to dig in and do self-study,” Souhrada says.
This story was sponsored by Principal Financial Group®
About Principal Financial Group®
Principal Financial Group® is a global financial company focused on improving the wealth and well-being of people and businesses. In business for more than 140 years, Principal® helps customers plan, protect, invest, and retire, while working to support the communities where they do business, and build a diverse, inclusive workforce. Learn more about Principal at principal.com.
