This month the results of a National Financial Capability Study was released by FINRA Investor Education Foundation. The results establish a base measurement of Americans’ ability to manage their money. Here are a few interesting facts:
– Nearly half of Americans reported having trouble keeping up with monthly expenses and bills.
– Young individuals display much lower financial literacy than older individuals. When asked a question regarding inflation, twice as many 18-29 year olds either answered incorrectly or stated they did not know compared with those over the age of 30.
– Even among those who gave themselves a very high score when ranking their own financial knowledge, 25% did not know the answer to a question about risk and diversification.
If you want to read more about the findings from this study, click here or visit http://www.finrafoundation.org/resources/research/p120478.
These results can improve if we start talking with our kids about the choices they have for their money. If we start teaching them while they are young, they will have the confidence to make sound financial choices as they grow into financially responsible adults.
Happy Holidays to you and your family!