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.
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
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,
In New York City, home to our nation’s financial markets, a staggering 74 percent of its students are considered economically disadvantaged. They are parallel worlds, a few miles apart and largely invisible to one another. This is an increasing challenge across our country: How do we build a path to economic mobility for more of
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
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
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
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.
Following up on its 2018 SEEK program with Queens College of the City University of New York, which provided financial aid as well as supplemental academic support, TIAA has launched a nifty online and on-campus financial education program called FinSights. The online program aims to help college students (or others who want to watch) skills to attain financial
When employees struggle financially, their employers struggle. Recent research on short-haul truck drivers conducted at the University of Pittsburgh shows that when employees' financial stress rises, companies experience a $1.4 million increase in costs due to preventable accidents, according to a report, The Cost of Financial Precarity. Intuitively understanding this, more and more employers are
For as long as he can remember, Zachary Beneda dreamed of joining the Air Force. But the 23-year-old senior at Texas A&M University, who will be headed to Japan after graduation for his first active-duty assignment as an Air Force support officer, got a rude awakening when he realized he’ll also have to begin paying
Financial literacy is a hot-button issue as memories still linger over the Great Recession and as millions of baby boomers hit retirement age, and as a legion of younger Americans battle skyrocketing student loan debt. How important is financial literacy? According to data from the National Financial Educator Council, “lacking” financial literacy and not having
Employees are dealing with financial strain — and they may want some help from their employer to address it. The results of a recent survey on employer wellness programs from software company Welltok, reveals two important takeaways: · More than 60% of survey participants are seeking support from their employer for all aspects of health
In January 2016 I founded a tech start-up help Americans make better financial decisions. I’ve since learned that most people are stressed out because they save little, have enormous debt, don’t know where their money goes and feel they’re not on track to meeting their long-term goals. I also found that the reasons for this are so
No one wants to feel like they’re scrambling for money every month, especially if they’re already working full-time and struggling to maintain a healthy work-life balance. However, that seems to be a common occurrence in today’s world of high spending and even higher debt. Despite the current financial climate, there are many simple ways anyone can improve
OBSERVATIONS FROM THE FINTECH SNARK TANK According to one banking industry expert: Traditional methods for financial education are a waste of time when it comes to helping Millennials plan for their financial futures--instead, credit unions should share financial advice that helps Millennials get through the week or month, and relaying that information through mobile platforms and
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 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
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
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.