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Education improves financial outcomes


Education improves financial outcomes

By , April 21, 2010

Several recent studies have shown a direct link between financial education and the propensity to save,( Lusardi 2005 ) further a 2006 OECD policy brief supports the notion that financially educated individuals are more likely to challenge financial service providers to provide products and services that meet their investment needs.

Research also indicates that employers use educational resources, such as seminars and workshops , written communication, websites and financial counselling to educate employees about retirement saving ( Krajnak et al 2008 ). Importantly it has been shown that these educational resources can influence an individuals retirement savings intentions and behaviour ( Nyce 2006 ) and that as an individuals financial knowledge increases, so will their ability to plan better and save for retirement ( Lusardi and Mitchell 2007 ).

My own research into ESOP’s and their use in business succession planning has already highlighted lack of education and awareness of the types of plans available and their potential benefits to both business owners and employees is one of the stumbling blocks to implementing what is widely agreed to be a desirable succession planning option.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.