The Blog

Bridging the Financial Literacy Gap: A Call to Action for Listed Companies

Mar 4, 2024 | Corporates

Financial literacy is a cornerstone of economic empowerment, yet it remains a neglected area in the UK and beyond. This knowledge gap not only affects individuals but also has far-reaching implications for society and the economy, particularly for younger generations facing unique financial challenges. 

Multiple studies, including a 2014 study by the World Bank have revealed that countries with higher levels of financial literacy have lower rates of poverty, higher levels of financial inclusion and more robust financial systems. 

It seems like a no-brainer, right? Well, we’re not sure why financial literacy isn’t more of a priority in schools and for large corporations, but we’re here to do something about it.

At TEA, we’re committed to addressing the issue head-on, but we can’t do it alone. We need the support of companies to join us in our mission to promote financial education for all.

Why Invest in Financial Literacy?

Studies consistently show that a significant portion of the population lacks basic financial knowledge, leading to poor financial decisions, increased debt, and limited access to financial opportunities. 

This lack of understanding exacerbates inequalities and contributes to wider economic instability. 

And of course, companies have a vested interest in promoting financial literacy among their retail investors. 

Better-informed investors are more likely to make rational investment decisions, understand the risks associated with investments, and contribute to a stable market environment.

Furthermore, proactive communication on financial matters can enhance investor engagement and loyalty. Companies that prioritise transparency and provide clear and accessible information about their financial performance and investment opportunities are more likely to attract and retain investors. 

By fostering a culture of openness and dialogue, companies can strengthen relationships with investors and build a loyal investor base.

What’s TEA Doing to Help? How can you get involved?

At TEA, we’re tackling the issue of financial literacy from multiple angles. 

We engage directly with Gen Z investors through events, podcasts, and online, helping to boost financial knowledge and engagement. Additionally, we work with listed companies to help them adopt more inclusive investor engagement strategies and upskill their investors.

Currently, we’re developing a program to support businesses in improving the financial literacy of their investors. We’ll showcase businesses that excel in this area and provide practical tips to help others play their part. 

To ensure we’re addressing the right areas, we’re inviting businesses to participate in a short survey. By understanding where companies currently stand and what they believe could be done to encourage financial education, we can tailor our efforts effectively. 

Look out for an invitation to participate, or visit our website to take the survey: 

Collaboration is key

With TEA’s dedication and expertise, coupled with the support and engagement of listed companies, we can make significant strides in improving financial literacy among younger generations. 

While many companies understand the need for greater financial literacy, it’s often deprioritised as too challenging to tackle. However, by coming together as a community, pooling resources, and creating a movement, we can make a real impact. 

We invite businesses to join us in this endeavour and participate in our survey to help shape our collective efforts. Together, we can bridge the financial literacy gap and empower individuals to make informed financial decisions for a brighter future.

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