Friday, July 15, 2016

What can be done to improve financial literacy?

The Christian Science Monitor has an interesting article that looks at "what can be done" to tackle poor financial literacy.  The article hits all the right notes.  We'd also add making sure all communities can access financial advice and tools.

Key graph:
One would assume that the financial crisis in 2008 would lead to better financial practices in 2016, but a new report by FINRA Investor Education Foundation indicates that Americans are not saving for the long-run, even though they are on a better financial footing six years after the Great Recession, which began when a housing bubble burst in 2007 and led to years of decreased consumer spending. In America, 18 percent are spending more than their household income; 21 percent have overdue medical bills; 32 percent are paying the minimum amount on their credit card; and 63 percent failed FINRA’s financial literacy test. What’s worse is that many Americans don’t realize how much they don't know.