April is Financial Literacy Month, a congressionally-backed effort to educate Americans about healthy financial practices and habits. Consumers tend to overestimate their financial literacy, according to a survey by research provider Raddon; 44 percent said they were “very” or “extremely” literate, but when given a financial quiz only 6 percent scored an “A.” Overconfidence can lead to costly mistakes.
It’s somewhat hard to believe that most employees today continue to live paycheck-to-paycheck. Despite the fact that Americans have recovered from the Great Recession a decade ago and that the unemployment rate is the lowest it has been in many years, employees are essentially making the same amount of money they did during the pre-recession
Ten years after the financial crisis and Great Recession, WalletHub measured the financial literacy of each state. The average grade? No higher than a B, with most states falling in the D+ to B- range. The reason? Little to no financial education. “We don’t learn personal finance anywhere in school —some schools have very limited
You don’t know what you don’t know. And that’s the whole problem with financial literacy. Scrambling to pay bills or struggling with credit card debt is just the tip of the iceberg. Can you manage your own finances successfully if you don’t understand the relationship between bond prices and interest rates? Ric Edelman, founder of
What does it mean to be “financially well” at different times in your life? I get some version of this question every week on our Financial Coaching Line. Employees take a Financial Wellness Assessment, report their score to me, and anxiously wonder how they are doing compared to others their age. The first thing I
Many employees are still struggling financially, even though the economy is better and unemployment is down. How bad is it? Statistics show that 80% of U.S. workers are living paycheck-to-paycheck. That causes their own financial stress and creates a problem for employers as well. Whether it’s student loans, car payments, mortgage/rent payments, credit card debt,
The lack of financial understanding by consumers has been signaled as one of the main reasons behind savings and investing problems faced by many Americans. To that point, a variety of financial research and reports have made it clear that we, as a country, need to focus on financial literacy. The TIAA Institute-GFLEC Personal Finance Index,
While experts debate what’s ahead for the U.S. economy, a major issue that’s often overlooked continues to pose a threat – personal financial health. It’s critical for all Americans to be equipped with the knowledge to make sound financial decisions. As we draw attention to this issue through Financial Literacy Month this April, some alarming
The economy is good these days and many employers may believe their employees also are doing well financially, but this is not the case. There are two economies prevalent in society, and oftentimes our daily routines and biased views on the rest of the world mean we are not aware of that. The truth is
The first quarter of the year has been a busy time on Capitol Hill for Prosperity Now. We’ve been thrilled to see several innovative pieces of legislation introduced that leverage tax season and boost resources for U.S. workers – all in service to helping working families enhance their short and long term savings. Four critical
Olivia Moore of Chicago was $20,000 in debt when she downloaded Tally, a personal finance app designed to help customers pay off their credit cards. With Tally’s help, in less than two years she was able to cut her debt in half. Similarly, Callie Person of Florida turned to an app called Charlie, and in
Data can be a powerful resource to guide decisions on selecting and improving financial wellness programs in your workplace. But data can also be easily misused or misunderstood. The first step in leveraging data in the workplace is to make sure you are using the right information. Without knowing what the financial lives of your
Bill Benson and his wife had planned to fortify their retirement savings once their children left home, so they’d have enough to travel and relax. But at 68, Benson is still working full-time, and that empty nest he envisioned isn’t so empty. Benson’s eldest daughter moved home with her two young sons after a divorce, and the
We hear a lot about the retirement crisis in America. With a decline in pension availability and concerns about the long-term viability of Social Security, the burden of saving for retirement rests squarely on the shoulders of individuals. According to EBRI, only 17 percent of American workers are very confident they will have enough for
Ignorance is not bliss—not when it comes to financial wellness, anyway. According to the third annual Personal Finance Index released by the TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business, Americans don’t have the knowledge of personal finance that can enable them to make sound financial decisions. The P-Fin
The Spice Girls were the epitome of confidence and femininity in the late 1990s. Who could forget the catchy song "Wannabe"? The Englishwomen in the group were not afraid to speak their minds—as the lead singer sang, "I’ll tell you what I want, what I really really want." And as more women become empowered, they
Financial advisers are uniquely positioned to deliver personal financial education in the U.S., and the business advantages they glean from doing so will benefit firms for years to come, experts in financial literacy said. The U.S. has the world’s largest economy, but it ranks 14th in the world for financial literacy. Improving the nation’s financial
Stress isn’t just affecting employees’ personal lives, it’s also killing their morale and productivity in the workplace — and costing employers billions in the process. More than 20% of workers spend more than five hours on the clock each week thinking about their stressors and worries, according to a new survey of 1,505 full-time U.S.
Your employees are currently struggling with personal financial stress, which prevents them from working at maximum capacity. Sure you overhear your employees talking about their lives, but even though financial stress is a huge component, it’s not likely you’ll hear about it. Ninety percent of employees use work time to deal with personal financial issues.
April is National Financial Literacy Month. Why do we dedicate this calendar page to highlighting financial skills and education? The tax deadline? Sound financial decisions are important all year long, but most Americans never learned how to manage money or save for goals, so financial security is a bigger challenge than it needs to be.