Financial literacy is a major part of life that is required if you want to be successful. It goes beyond just knowing the basics. Everyone can learn how to write a check. Frustratingly, many Americans were never taught how to balance their checkbook. They don’t understand how credit works. It’s that financial ignorance that gets them in trouble later in life.
Still, not having the proper financial literacy will lead to bad money management in adulthood. We’ve already covered the fact that the #1 cause of divorce is money problems. That extends from not having a solid understanding of money. In total, Americans hold as much as $13 trillion in overall debt. That’s a lot of wasted money that will probably never get paid back.
Equifax Poll on Financial Literacy
Equifax released a poll that asked people to grade themselves on their financial literacy. The sad news is, not very many people gave themselves a passing grade. Only 39% said they would grade their financial knowledge a ‘B’. 33% said they were a ‘C’. The Champlain College Center for Financial Literacy has a different idea.
According to their study, 27 U.S. states rank at a ‘C’ or below. Nine states would get a failing grade. When you look at a lot of things people are doing wrong, most of it revolve around saving. A majority of Americans say they could’ve saved over $1,200 last year. The problem is, they weren’t able to due to financial ignorance.
Teens and Financial Literacy
Teens today aren’t just falling behind other countries in science and math. They also fall behind on financial literacy. They simply can’t compete with the rest of the world’s teens when it comes to financial knowledge. When tested on basic money knowledge skills, Americans took the test twice. Sadly, they failed it both times.
https://financialhelpers.com/more-americans-are-saving-their-credit-cards-for-larger-purchases/
The story in all of this is that the United States is the richest country in the world. Therefore, we currently live in the largest economy the world has ever seen. Yet, our citizens are failing at understanding even basic financial terms. This is leading many people to call for financial literacy to be taught at the school level.
Start them Early
Start students off early learning the basics. In high school, it should be a requirement to learn about money and finances. They should be taught how credit works, how to save money, and so much more. This country would be in a lot better shape financially if younger generations knew the basics.
