Financial Illiteracy

Financial Illiteracy: If you lack proficiency in your personal financial management causes not only tremendous anxiety but you will incur serious problems.

Review the Following on Financial Illiteracy:

1.  It has been shown that less than 20% of our baby boomers are saving adequate for their retirement and that one-quarter of the adults between the ages of 35 and 54 have not even started to save for regtirement.

2.  In American one out of every 2 marriages ends in divorce.  Financial disagreements in a marriage is one of the leading causes of marital discord that leads to divorce.  Worth magazine and Market Research firm of Roper/Starch conducted a survey and couples admitted to fighting about money more than anything else (more than 3 times more often than they fought about their sex lives).  57% of those surveyed agreed with the statement that in every marriage, money eventually became the most important concern.

3.  American adults, less than 10%, understand 401 (k) well enough to explain it to someone else.  American Adults cannot explain what a municipal bond is, fewer than one in four.

4.  About 8% of investors know that there is not any agency or organization that can insure you against losing money as the result of fraud in your investment portfolio, according to another survey conducted by the Securities Investor Protection Corporation by the Securities Investor Protection Corporation and the Investor Protection Corporation and the Investor Protection Trust.

5.  It has been estimated that nearly 80 percent of consumers do not know how the grace period on a credit card works. A greater percentage doesn’t of people don’t understand that interest starts accumulating immediately for new purchases on credit cards with outstanding debts.

6.  About 53% of people who took a multiple choice investing quiz did not know that total return was the best measure of a mutual fund’s performance. Because a large percentage of American are just illiterate where their finances are considered.

It is very hopeful that the school systems will get on the band wagon to teach better financial responsibilities for the individual person.  The most important thing that our school system could do today to help people with their finances is to open up the classroom to classes in finance.  Few school are offering our children help with our finances.

Financial Illiteracy

Financial Illiteracy cannot be tolerated.

Related Reading:

Financial illiteracy will make us a permanent underclass.(Executive Memo): An article from: Black Enterprise

Janice Zajac uses her skills to banish financial illiteracy: she has seen both sides of the coin. With experience as a CPA in industry, as well as in a ... An article from: Catalyst (Dublin, Ohio)

Saving and Investing: Financial Knowledge and Financial Literacy that Everyone Needs and Deserves to Have!

Leapfrogging? India's Information Technology Industry and the Internet (Discussion Paper (International Finance Corporation))

Bankrupt by 25: people under age 25 make up the fastest-growing age group filing for bankruptcy. Easy credit, bigger student loans, and financial, illiteracy ... An article from: New York Times Upfront

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