Financial Literacy for Employees

Introduction

• Important numbers to know

1. Understanding the Past in Order to Change the Future

• Applying for a small business loan
• What is finance?
• What is accounting?
• What do we have and what do we owe?
• How much did we make?
• Using financial ratios to identify strengths and weaknesses
• Financial ratio examples: Microsoft, Google, and Apple

2. Common Tools of Analysis Used within a Business

• Everlane and the cost to make a pair of jeans
• Identifying and solving cash problems before they occur
• Breakeven at a hypothetical startup Russian restaurant
• Make it yourself or outsource?

3. Numbers That Measure Us

• Too many key performance indicators
• You get what you measure
• Case study: KPIs in a trucking business
• Environmental, societal, and governance issues (ESG)

4. Your Compensation and Savings

• The difficulty of increasing your income
• The secret to financial security
• The importance of personal budgeting
• Simple savings plans
• Simple long-term investment plans

5. Your Income Taxes

• Tax planning
• Difference between gross pay and net pay
• Paid time off (PTO) and other forms of compensation
• Tax brackets
• Tax-advantaged savings

Conclusion

• Adding 50 IQ points