5 ways CDPs can provide jobseekers with financial literacy and budget support
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In today’s economic climate, both employed and unemployed workers have become increasingly concerned about financial constraints. As the cost of living continues to rise – and up to 47% of Canada’s career practitioners cite getting a job to pay bills as their clients’ primary concern – financial literacy and budgeting support have become a more prominent issue for jobseekers globally. Although career development professionals cannot offer financial advice, they can play a crucial role in helping jobseekers increase their financial literacy.
5 ways to offer financial literacy and budgeting support
When it comes to building financial literacy and gaining useful budgeting support, different approaches will work for different people. However, by implementing five key strategies, career practitioners can become a stronger resource for jobseekers, and empower diverse workers to make informed financial decisions and achieve their professional and personal goals.
1. Partner with financial planning organizations or experts
Career and financial planning often overlap; an individual’s job salary, for example, is a vital part of budgeting and overall financial health. Although career practitioners are not expected to provide financial advice, they can build relationships with financial planning firms or experts to support their clients’ financial goals in a different way.
Career practitioners can partner with financial planners by adding them to a referral directory for clients, co-hosting a career and financial literacy webinar or commissioning a budgeting template from a financial planner that can be shared with clients. Building these types of partnerships with reputable financial organizations can put students and clients on a path to making financially sustainable decisions, which positively impacts their personal and professional lives.
2. Offer salary negotiation resources
One of the foundations of financial security is a job that offers fair compensation, especially as 56% of Canadian professionals report client concerns about finding “decent-paying work.” Securing a job that pays a living wage starts with having the language to negotiate effectively. Offering jobseekers a clear, strategic template can help ensure they can effectively negotiate a salary that meets their financial needs.
As an additional resource, career practitioners can offer guidance on salary negotiation for both salaried and wage workers. Helping equip jobseekers with solid communication skills, labour market insights and basic knowledge of compensation, and can set them up to reach a mutual agreement in a real-world setting. Salary negotiation coaching can also help jobseekers build confidence in asking for what they need, prepare to handle pushback in the negotiation process and explore various types of compensation beyond pay, such as childcare subsidies, extended health coverage, wellness programs or retirement plans.
This article is the first in a CareerWise article series exploring the Cost of Living & Careers. Watch for tips and resources on CareerWise in the coming days!
3. Embrace the separation between personal interests and career interests
Securing a career that aligns with personal interests and values is important for many people; according to a 2024 survey conducted by Randstad Canada, 35% of respondents said they would reject a job at a company that did not align with their values. While values-based and interests-based career development is important, the cost-of-living crisis serves as a reminder that choosing a job that meets your financial needs is important as well – even if it’s not a role that feels personally fulfilling.
In addition to guiding jobseekers in securing employment that meets their financial needs, career development professionals can help jobseekers explore other avenues for achieving personal satisfaction, like hobbies, volunteer work and personal relationships. Jobseekers can pursue work they are passionate about, but they can also keep their personal passions and career aspirations separate. Students and clients can pursue a career solely as a means to provide financial stability, and career development professionals are in a unique position to help them embrace that idea.
4. Offer guidance on alternative income strategies
Navigating the cost-of-living crisis will require a great deal of creativity and flexibility, which includes exploring alternative sources of income. Active income, like freelance writing or part-time work, is earned through ongoing work or effort. Passive income, such as building and selling graphic design templates or starting a monetized podcast, requires less continuous effort to generate money over time. Both active and passive income sources can help jobseekers supplement earnings, reduce debt and boost savings.
“Navigating the cost-of-living crisis will require a great deal of creativity and flexibility, which includes exploring alternative sources of income.”
Career development professionals can also guide jobseekers in using alternative income strategies, such as leveraging their skills in different sectors. Jobseekers who work in the non-profit sector, for example, may earn more money by switching to the private sector. Similarly, workers in stagnant industries may earn more money or better benefits by working in a growing industry with a strong job outlook. Career practitioners can advise jobseekers on the smartest movies to make, tailoring their advice to the individual’s needs, goals and skills.
5. Learn about public assistance programs and resources
Due to the cost-of-living crisis, many people who work part-time or full-time and use alternative income strategies still struggle to meet their financial needs. These individuals may benefit from learning about government resources. While career development professionals do not need to be experts in government assistance programs, understanding how and where to direct people who need housing, food or childcare resources can help clients and students bridge the gap between where they are and where they want to be financially.
For instance, career development professionals could develop an online resource to share with clients that includes federal, provincial and territorial programs designed to support people dealing with poverty, unemployment, disability and other needs.
Moving forward
The cost-of-living crisis has prompted more people to prioritize financial stability over career development. However, career development professionals are in a unique position to integrate financial literacy and budgeting strategies into career planning, helping jobseekers from all walks of life prioritize both financial wellness and career development.
