financial literacy

/Tag: financial literacy

Shore up your financial literacy

Two-thirds of Americans can't pass a basic financial literacy test, according to a study of 80,000 people by FINRA Investor Education Foundation. That means the majority do not have the knowledge needed to make smart financial decisions, potentially costing them thousands of dollars over a lifetime in missed investment opportunities, debt, poor saving habits and

What we don’t know about finances is costing us

What we don’t know can cost us; and many of us have at least some idea of how much. Respondents to a survey conducted this month reported that their lack of knowledge regarding personal finances likely cost them an average of $1,230 in 2018, as reported by the National Financial Educators Council, a personal finance company

Hard Financial Planning Lessons Learned From The Government Shutdown

The Federal Government shutdown is approaching its fourth week. According to the Washington Post, over 800,000 American workers have missed their first paycheck. As the shutdown continues there are many unfortunate stories about the personal hardship thousands of Americans are facing. An unexpected loss of income is an upsetting personal and financial setback. As a financial

Early Training on Financial Literacy is Every Parent’s Responsibility

Life is hard enough just trying figure out who you are without worrying about financial woes. Parents often forget to teach their kids about the key elements of being financially savvy while their kids are young enough to embrace the idea.  Teaching good habits when kids are young provide a big payoff in the end.

What Does It Mean to Be Knowledgeable About Your Finances?

Did you know that: 76% of millennials lack basic financial knowledge. Two-thirds of Americans don’t understand basic financial concepts. For example, they can’t compute the interest on a $20,000 loan with a 10 percent interest rate. Americans are generally overconfident in their financial knowledge, only a few could score a top grade on a financial quiz. In a survey

Financial Literacy and Financial Wellness Are Two Different Things

Financial literacy and financial wellness are not the same thing. 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 the education component — a term a

Why do so many people fall for financial scams?

In hindsight, david carter sees the deal differently. The 63-year-old has a Master’s degree in technology. A successful career meant he found a six-figure salary offer perfectly plausible. He knew from reading newspapers that tech stocks were up and the job market was hot. So when an email offered him a job with a Swiss firm

Communication, tools, safety net all key to improving retirement outcomes

Reforms should be better communicated to workers in efforts to combat behavioral biases and inadequate financial knowledge that undermines participants’ retirement decisions, the Organization for Economic Cooperation said in its latest pensions outlook report. The OECD called on combining funded and pay-as-you-go retirement plans, automatic mechanisms and a strong safety net for pensioners to boost retirement

Partially Privatizing Social Security Sounds Great, but Offers 2 Big Drawbacks

Few social programs bear as much importance to the financial well-being of older Americans as Social Security. Despite the average retired worker payout being only $1,417.22 a month in September 2018, the program is responsible for keeping 15.3 million retirees out of poverty. Furthermore, more than three out of five of today's aged beneficiaries lean

Six Steps To Implementing Financial Education In The Workplace

It is well known among employers that a lot of employees struggle with stress -- including financial stress -- at work. According to a recent survey from PwC, nearly one-third of employees report being distracted due to challenges with their personal finances. Persistent debts, outstanding bills, sudden large costs and overwhelming medical bills contribute to employees being

Are You Smarter About Personal Finance Than Your Fellow Americans?

There's a lot to know about your money. Unfortunately, many Americans don't know some of the basics that are important to making sound financial decisions. In fact, the Federal Reserve reported recently on how well Americans did when answering four basic financial literacy questions -- and there were a surprising number of incorrect answers. Can you correctly

Why We Need to Nurture Entrepreneurship in Young Girls

Last month, women on college campuses around the world gathered for Women Entrepreneurship Week, an annual event that brings budding female entrepreneurs together with female startup founders through workshops and panel discussions. Last year, it attracted participants from 76 universities in 15 countries. Programs like these promote and support women’s entrepreneurship—and we need more of them

America’s Growing Financial Literacy Problem

Making major personal finance decisions can be daunting for anyone. Whether the decision is related to paying back student debt or how to invest for the first time, the outcomes of these decisions have a long-term impact on the quality of our lives. Smart decisions can lead to achieving financial independence, while bad decisions can lead

Fintech savvy no substitute for financial literacy, finds study

Millennials’ usage of smartphones can’t fill gaps in their financial literacy, according to a new report. The study, titled Millennial Financial Literacy and Fin-Tech Use: Who Knows What in the Digital Era, comes from the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business. It assessed individuals’

Brushing up on financial literacy

Money is the greatest and the most ill-used factor in life. People don’t know how to tend it, how to manure it, how to water it, how to make it grow, and when to pluck its flowers and when to pluck its fruits.  These were the words spoken by Margayya, the people’s banker in the

Millennials don’t trust the financial industry. These startups want to change that.

One spring morning in New York City’s Financial District, several besuited men couldn’t help but stop and gaze at a rather out-of-place sign hanging from the New York Stock Exchange building. “Follow us on Pinterest!” read the enormous red banner. A few weeks later they stopped again, this time in front of a yellow sign

By the numbers: Americans are barely in control of their money

In an era of financial-services innovation, money remains one of the great stressors in our lives. By the numbers: 5% of Americans with checking accounts rack up more than 50% of all the country's overdraft and bounced-check fees. It's a $35 billion income stream for the banks, even after Dodd-Frank. Needless to say, those 5% of Americans are

Our most irrational financial habit? Cheaping out on retirement saving

Dan Ariely’s job is to figure out why you won’t pay attention to perfectly good financial advice such as spending less and saving more. Mr. Ariely is a professor of psychology and behavioural economics at Duke University in North Carolina and a co-founder of Toronto-based BEworks, a management consulting firm that uses behavioural science in

Half of Americans fail this quiz on Social Security retirement benefits

Forty-seven percent of adults ages 50 and above could not pass a simple Social Security quiz. Two topics that particularly confused quiz takers: full retirement age and spousal benefits. Not fully understanding Social Security strategies can result in big losses for retirees if they make a mistake when claiming benefits. If you can't pass a