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.
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,