Financial Literacy

The Need (And Demand) For Better Financial Literacy

Today, many young adults are experiencing stress when faced with taking responsibility for their finances and planning for the future. This is because most lack the skills, knowledge and confidence to do so. Average student loan debt continues to climb to never-before-seen amounts, but many young adults know little beyond a transactional bank account. As a result, many report

Why We Need To Close The Financial Literacy Gap For Women

Women have never felt more empowered than we do today. There are more female CEOs in the Fortune 500 than ever. Women are running for office in record numbers. More women are pursuing entrepreneurship. Women are earning more bachelor’s degrees than men. More working mothers are the primary or sole earners in their households. The list goes

Most Americans Think They Know More about Money Than They Do

Have you ever met someone who doesn’t want to start a CrossFit class until they get in shape, and found yourself wondering, isn’t the point of the class to help you get in shape? That mentality is not uncommon — even for our personal finances. Americans lack savings, are increasingly in debt and face a

Financial Literacy Promotes Successful Financial Wellness

Financial literacy dramatically differs from the resulting financial wellness.  Financial Wellness and financial literacy are related however they are certainly not the same thing. There’s a major difference between being financially literate and achieving financial well-being. Let’s begin with the fundamental differences between financial literacy and financial wellness. Financial literacy refers to the understanding and

The benefits of being financially literate

Short-term lender Wonga recently asked over 1 000 of its customers about their attitudes towards money. It found that, despite 88 percent believing that financial health was “extremely important”, most (66 percent) claimed to have only an amateur knowledge of money management. “Financial literacy is key to financial health. It can help people to manage

The Four Financial Gaps in Retirement Preparation

Retirement is a monumental life event for which people prepare for decades. It is marked by changes in virtually every area of one’s life, from work to relationships, and from health to self-identity. However, the most significant life domain relevant to retirement is money. Personal finances can make or break a person’s retirement and even dictate whether it happens at all. Today, personal finances

The Societal Benefits of Financial Literacy

While it’s good for people themselves to be financially literate—to know how to earn and manage money—society itself needs widespread financial literacy among the people in it. Even though hundreds, if not thousands, of organizations in the U.S. advocate for individual financial literacy training, we don’t necessarily recognize the global benefit of it. Even the

Financial Wellness Differs from Financial Literacy

Financial wellness differs from financial literacy.  Clearly, Financial Wellness and financial literacy are not the same things. Surprised? This author was, too. But it turns out there’s a major difference between being financially literate and achieving financial well-being. Essentially, there are some of the fundamental differences between financial literacy and financial wellness. Financial literacy means

Financial literacy: a crucial life skill

Throughout school, students learn advanced mathematical and chemical equations, American history, art, music and English. But most Americans never learn how to properly manage money. Debt is an accepted part of most people’s lives. Thirty percent of Americans have no long-term financial plan. Some have a tendency to spend money when and where they want

84% of millennials and Gen Z failed this retirement quiz

The vast majority of workers under the age of 34 lack basic knowledge about their 401(k) retirement plans, according to the new Financial Wellness in the Workplace Study from Fisher Investments 401(k) Solutions. The report surveyed 1,000 employees at companies with between five and 350 workers on their retirement knowledge and preparedness, and found that 84% of

Financial literacy skills have taken a nose dive since the Great Recession

It’s been a decade since the Great Recession’s upheaval, and while some measures of Americans’ economic well-being have recovered like the unemployment rate, their financial literacy isn’t one of them. Between 2009 and 2018, there was an 8% slip in the amount of people who could correctly answer most questions about interest rates, inflation, bond prices,

Financial Prosperity Eludes Many Americans Despite Growing Economy

As the gap between the Haves and the Have-nots continues to widen, cash-strapped Americans are failing to save money, struggling with student loan debt and facing decreasing financial literacy, despite economic growth and declining unemployment over the past 10 years, according to new research from the FINRA Investor Education Foundation (FINRA Foundation). The study, “The

We must act today to address the hidden cost of financial illiteracy

With bipartisanship in short supply, Congress must search for areas in which cooperation is both possible and beneficial for the health of our nation—and financial literacy would be a wise place to start. The lack of financial literacy is blind to politics. It affects young and old, rural and urban, and every ethnicity, gender and creed.

7 Free Online Courses to Improve Your Financial Literacy

Managing your personal finances and understanding the concepts is critical if you want to maintain your financial well-being, so holes in your knowledge can come with serious consequences. Luckily, there are plenty of free online courses that can help you improve your financial literacy. Here are seven free online courses that everyone should consider taking. 1. Personal Finance

Let’s stop the argument that financial education doesn’t work

About this time each year, I expect the predictable articles proclaiming that personal finance education doesn’t work. Pundits point to poor proficiency in financial literacy “tests,” and programs that show minimal change in consumer’s behaviors to support their position. They assert this education is useless, ineffective and a waste of time, and we should stop spending

Are you on the right financial track for your age?

The Consumer Financial Protection Bureau, combined with a review of research and consultation with leading experts, found that financial well-being includes the following four elements: Having control over day-to-day, month-to-month finances. Having the capacity to absorb a financial shock. Being on track to meet your financial goals. Having the financial freedom to make the choices

Can You Answer These 6 Basic Financial Questions? Most People Only Get 2 Right.

Can you answer these six basic financial questions? Most people answer only two questions correctly. Let's see how well you do. Basic Financial Literacy Questions These six questions on credit history, net worth, interest rates and student loans were developed by Annamaria Lusardi, Director of the Global Financial Literacy Excellence Center (GFLEC) at The George

How Financial Literacy Can Lift Women Out Of Poverty

Without financial literacy, you can’t lift yourself from poverty. In order to have financial security and eventual financial independence, knowledge of personal finance basics—managing savings, banking and investment accounts—is mandatory. Financial literacy can provide so much more, though. Think about this: When you are money savvy, no one can try to control your life by

Three Facts That Show Why Financial Literacy Is Especially Important For Women

First, my disclaimer: It’s important that women and men understand their finance! All adults need to have a basic understanding of money management. However, on average men are still the ones to manage the family long-term financial planning, including: savings, investments, retirement, management and insurance. A UBS survey of high net worth married women, widows, and divorcees found that while 85% of the women